Auto insurance is mandatory in almost all states in the US and there is a minimum liability insurance cover that is required by each state. This is needed to show as proof in the event of an accident. Having an auto insurance cover means proving that the motorists have the ability to pay for damages as prescribed by the state. In these states where you are required to show proof of compulsory liability, you have to provide details of the insurance policy even before you can legally drive around.
According to the liability cover which is mandatory in most states, the insurance policy will pay for damages to the other party’s vehicle and cover medical and other costs as well, especially when the policyholder is the driver at fault. As per the state laws, the drivers have to pay for any damage that might be caused due to an act of negligence on their part. This compulsory auto insurance normally gets public support as they too want to see that these laws are enforced.
The liability insurance coverage is compulsory in almost 49 states as well as the District of Columbia. This auto insurance liability law is absent only in New Hampshire. But laws in most of these states have proven to be ineffective as the number of uninsured drivers has still remained high. There could be a number of reasons for this. There are a number of drivers who simply cannot afford auto insurance and the other drivers who have a history of violations and surcharges due to auto accidents don’t wish to pay a higher premium as a result of their not-so-good driving records. The estimates of uninsured drivers in the US are almost 14% and it is hence highly expensive to track down these motorists who violate the compulsory insurance laws. Drivers will stop breaking the laws only if the odds of being caught are high and if the penalties are quite severe.
There are at least 30 states that have already discussed about creating an online auto insurance verification system to help identify the uninsured drivers. But the system is only operational in four states, according to the Property Casualty Insurers Association of America. Insurers have to keep their databases updated regarding the uninsured motorists. This will help law enforcement officials to easily access the information instantly when these motorists are stopped and checked for traffic violations.
