Monday, January 13, 2014

Insurance? Not Required (Anywhere)

Despite what some companies claim (and what I thought until now), it turns out that car insurance is not mandatory in all states. Here is an article by Javier V Boix about this fact.

Car Insurance Is Not Required in All States, Despite What Some Insurance Companies Claim

Car insurance is set in place to protect both you and others from the high price of car repairs. This is the reason that almost every state makes it mandatory that a person has car insurance when they register a vehicle. If a person who does not have insurance hits you, they will be fined but you will have to pay for the repairs if they are unable to. If you are driving without insurance, a person could take you to court to recover the cost to repair their property damage and medical bills.

A few states will allow you to register a vehicle without car insurance with conditions. In New Hampshire, if you can show that you are able to cover the cost of damages immediately, then you do not need to be insured. However, many argue that if you can show that you can immediately cover the damages, then you can also afford car insurance.

In addition to New Hampshire, other states have other options to car insurance. Virginia and South Carolina will allow a person to drive legally without vehicle insurance if they pay $500 to the state. You will receive a receipt that must be shown if you are pulled over by a law enforcement officer. If you do not have the receipt on you, then you can be ticketed for driving without insurance. This finding will also make you responsible for any court cost that is required. It is important to note that you will still be liable for the damages you cause in the accident.

South Carolina also has an uninsured motorist fee, and it is $50 more at $550 each year. The driver is still liable for damage and it is due every year. Many car insurance plans that offer just the bare minimums for the state cost less than $550 a year. You are also taking a large gamble by not having insurance to protect your vehicle and people inside from damages.

If you want nothing more than liability if there is an accident, then this fee is for you. Most people who opt for this method do not have any assets to lose and want to drive in a legal manner. Unfortunately, they rarely own much, which makes it difficult to get the money for repairs.

There are many who do not understand why insurance is so necessary. Some companies would tell you it has to do with the covering the possibilities. A handful of people that opt to take the voluntary fee are gambling that they will not get into a wreck. If they do hit someone, they could look at property damage of several thousand dollars. However, there are also the medical bills that can quickly accumulate with the price of chiropractic care and x-rays.

With the varying types of car insurance policies, it is important that one have accurate insurance information. If you live in one of the states that offer you the ability to pay an annual fee, you will want to take great care in making sure that you considered all of the potential costs if in an accident. Before you assume that insurance is too expensive, take the time to talk to a variety of companies and look into the discounts they offer to lower the monthly premiums.

Source: EzineArticles.com.

Thank you Javier! That was definitely new. Although I personally think that it's best to be covered and not take such risks.

Nadav

nadavs

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