In any part of the globe, the surest way for a driver not to fail in compensating anyone he or she may injure in an accident or whose property he or she may damage is by carrying auto insurance. This is the reason why in all U.S. states, whenever drivers renew their license, register their car, are stopped by a police officer or get involved in an accident, they are required to show proof that they carry auto liability insurance or any state-approved alternative to auto insurance coverage.
Auto liability insurance coverage was first made compulsory in 1925. This law, now known as Financial Responsibility law, was aimed at making sure that drivers at fault in accidents have the financial capability to compensate their victims for the damages and losses they are made to suffer.
Carrying auto liability insurance is just one of the ways through which drivers comply with the Financial Responsibility law and, in 48 states, this is just the way drivers show their compliance. New Hampshire is the only state where drivers are not mandated to carry auto insurance coverage, unless they have been cited for a DUI or reckless driving, or has injured or killed someone in an accident where they are at fault. Without any traffic rule violation, drivers can, instead, file an SR-22 or deposit securities or money with the state treasurer as an alternative to having an auto insurance policy. In another state, in Virginia, specifically, drivers may also just pay the state’s Department of Motor Vehicles (DMV) the required uninsured motor vehicle fee in lieu of purchasing an automobile liability insurance policy.
In states where auto liability insurance is mandated, 38 of these, which are known as “tort” or “fault” states, require drivers to carry tort insurance coverage; the remaining 12 states, known as “no-fault” states, require the “no-fault” auto insurance coverage on their drivers (although drivers in New Hampshire are not required to have auto insurance and drivers in Virginia have the option not to insure their vehicle, these two states require the tort insurance coverage for drivers who rather choose to carry auto insurance liability coverage).
Despite the mandate, more than 29 million drivers, according to Insurance Research Council (IRC), remain to be without car insurance due to the high cost of car insurance policies. Choosing an insurance policy that carries the type of coverage that drivers need and one that does not go beyond their budget in no longer much of a problem though with the help of independent car insurance firms, like Insure on the Spot for instance. Independent car insurance firms actually exist for this very purpose. Besides providing drivers with insurance quotes (as well quotes for their other needs, like SR-22), some of these firms also do the transaction with a driver’s chosen insurance provider. Not only do the quotes help drivers find the cheapest and best policies, the whole transaction itself is also easy, simple and fast.