Telling people what the auto insurance law states is one of the easiest things to do. Our legislators have penned down an extensive set of rules and regulations and even published those so all citizens can read through them.
The toughest part is living with the consequences of the laws that have been drafted. All states of the United States, excluding three have set the minimal requirements for the auto insurance policy in order to it to be considered legally abiding. These states also have a law that states that an auto insurance policy is a must for people who drive automobiles. Thus, all that the drivers need to do is either opt for insurance coverage that covers at least the state specified minimums or be prepared to pay a hefty fine if found to be driving without a valid insurance policy.
These laws are drawn up to arrive at a compromise between the drivers and the victims of auto accidents. On a larger view, the auto insurance policy is like a personal responsibility. It is the responsibility of every individual to stand up for their actions and face the consequences of the mistakes they make. If involved in the accident in which you are at fault, you should have enough money to help you take up the financial liabilities that come with the mishap. However, unfortunately not all of them can be prepared for such eventualities. This is where the concept of mandatory auto insurance gains importance. Auto insurance helps see you through the toughest of lives situations. Not only will you be covered, but the victims also will be accordingly compensated by the auto insurance provider.
Most people are in agreement with the need for good auto insurance coverage. However, the state specified minimums in most of the states was something that was drafted nearly four to five decades ago making them inadequate. Hence, there is a need to make slight changes keeping in mind the current economy. Leading this change is Wisconsin that introduced new minimums for insurance against underinsured and uninsured drivers and also for liability insurance in February this year. This bill became law with the Governor signing it, thus approving it. This has resulted in people receiving mailers informing them of the change in their insurance premiums.
The Republicans, considering the impact of the increase on consumers, are now protesting against making liability insurance compulsory. As a result of this increase, close to 14% of the drivers are driving without insurance and they feel this number will increase with this insurance being made mandatory considering the high costs involved.