When it comes to driving, besides being required to have a driver’s license, US states also make it mandatory for drivers to prove financial responsibility, through auto liability insurance, a bond or any state-approved means. This financial responsibility is proof of a driver’s capability to compensate another individual (may be another motorist, a bicyclist or pedestrian) whose property may be damaged or who may be injured in an accident wherein the former is at fault.
While carrying auto insurance is already expensive for many drivers, some insurance companies make premiums even more expensive for drivers who are older, who have less driving experience, who drive vehicles that have higher risks of getting involved in accidents and which are more expensive to repair (like a high-powered sports cars), who have traffic violation records, and those who have been required by the court to file an SR-22.
It is a fact that some insurance companies require higher premiums from drivers who have been involved in traffic accidents or have received several tickets for various traffic violations, such as speeding, reckless driving and, most especially, DUI. No matter how many traffic violations one has committed, though, carrying insurance is still a necessity under state laws. (New Hampshire and Virginia are the only two states that do not mandate the carrying of insurance liability coverage on drivers. In New Hampshire, it is enough that drivers are able to demonstrate capability to provide sufficient funds in case of an “at-fault” accident; in Virginia, drivers can either have insurance or register their vehicle as uninsured but will have to pay a significant fee. For motorcyclists, insurance coverage is not required in the states of Washington, New Hampshire, Montana and Hawaii.)
In its website, Insure on the Spot explains why not carrying auto insurance liability can be more expensive for drivers. Obviously, drivers would want to be insured but may likely opt not to be due to reasons, like poor driving record which would mean paying higher premium or because they simply cannot afford paying insurance. This, however, is the very reason for the existence of independent car insurance companies – for drivers to have all the help they need in looking for the best insurance rates for cars. Whether online or through a phone, there will be one company that is always ready to provide clients with information on the type and cost of insurance that will best meet their personal budget and need.Read More