Tag: Car Insurance

Florida Car Insurance

Last updated on April 26th, 2018

Florida Car Insurance – The state of Florida is one of only a handful of states to have a no-fault insurance laws whereas most other states are tort states, or states that place blame for a traffic accident on one person or another and it is the at fault driver that is financially responsible for all damages. Tort states typically require liability insurance which serves to protect the policy holder from financial liability in an accident but because Florida is a no-fault state, and Florida Car Insurance laws are a bit unique. Like every other state, Florida still requires its residents to meet minimum liability car insurance requirements in order to legally drive a vehicle. As of 2009 these requirements were set at $10,000 for bodily injury to one person, $20,000 for bodily injury to two or more people and of course $10,000 in property damage coverage. These coverage minimums are established by Florida’s Financial Responsibility Law which states that a drive must have the previous mentioned coverage when one of the following situations arise

 

-The policy holder is involved in a crash that is their fault

-The policy holder’s license is suspended because too many points were accrued

-The policy holder receives a citation for a DUI and their license is suspended

-The policy holder loses their license because they are a habitual traffic offender

-The policy holder has their license revoked for any reason

 

In addition to its financial responsibility law the state of Florida also operates under a no-fault law which requires anyone that has resided in the state at least 90 days during the last year to meet certain insurance requirements. These requirements included a minimum of $10,000 in personal injury protection as well as a minimum of $10,000 in property damage liability coverage.  The personal injury protection insurance is meant to compensate the policy holder if they are in an accident and they sustain injuries and/or miss work due to those injuries. The property damage liability coverage on the other hand is intended to help pay for property damaged sustained in an accident by someone other than the policy holder.  Unlike property damage coverage, which is typically placed on a certain vehicle, personal injury protection in Florida is purchased for individuals and is not limited to a certain vehicle, meaning that even if the policy holder is a passenger in a vehicle they do not own when they are involved in an accident the coverage is still in place and can be used if the other driver does not have the required insurance.

Although underinsured and uninsured motorist coverage is not required by the state of Florida in order for a vehicle to be legally driven it is one of the many forms of coverage that Florida residents have the option to purchase. In fact, any insurance company that does business in Florida is required by law to offer underinsured and uninsured motorist coverage to their customers. If a driver decides not to purchase underinsured and uninsured motorist coverage as a part of their policy the insurance company is required to issue a declaration page with the policy stating that the policy holder willingly opted out of underinsured and uninsured motorist coverage.

If a driver is found to be driving without the minimum required amounts of car insurance  on a vehicle they risk facing a fine and could even have their license and registration suspended for a period of up to three years.  If the registration of a vehicle is suspended the owner must pay a mandatory $150 reinstatement fee and provide proof of insurance to the Department of Highway Safety and Motor Vehicles before it can be reinstated.  The $150 reinstatement feel will continue to increase for subsequent offense and can reach s high as $500. In the state of Florida there is very little chance for drivers to skirt the system and avoid purchasing the minimum amounts of coverage as required by state law due to the many different ways the state government has of locating uninsured drivers. In addition to traffic stops and car accidents an uninsured drive can also be found when they are reported by the insurance company. Florida Car Insurance law requires that insurance companies notify the HSMV when a customer cancels a car insurance policy or allows it to lapse. If a driver is reported as having canceled their policy and the state does not receive any updated policy information they will directly request proof of insurance from the driver.  If the driver does not provide this information immediately they are at risk of having their license, registration and tag suspended for a period of up to one year. While the HSMV may allow for a small grace period for the Florida driver to provide proof of insurance legally all three items can be suspended after just one day of a reported lapse in coverage.

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Mississippi Car Insurance

Last updated on April 26th, 2018

Mississippi Car Insurance – The state of Mississippi has had compulsory car insurance in some form or another since the 1950’s. Despite over 60 years of requiring residents to maintain car insurance on their vehicles, Mississippi has the second worst uninsured motorists rate in the country, behind only New Mexico. As of 2012, the uninsured motorist rate for the state of Mississippi was an astounding 28 percent, twice the national average, underscoring a problem the state has had with car insurance enforcement for the last decade. As recently as February 2012 state lawmakers have attempted to get uninsured motorists under control by proposing new laws that would aid in the enforcement of Mississippi car insurance regulations.  Introduced in 2012, House Bill 480 will require all vehicles to have proof of insurance before they can be registered with the DMV. If passed the bill will also create a database of all vehicles registered in Mississippi and their current insurance status which will e used by law enforcement officers to instantly check if a vehicle has insurance during any traffic stop or after an accident. The database system is in use by many states and has proven to be quite effective, especially in Georgia and Wyoming, and because it is linked directly to insurance companies the insurance status of a vehicle would be updated instantaneously. If it is signed into law House Bill 480 will also establish a series of fines intended to penalize drivers that are caught driving uninsured. The proposed fines would cost a driver $300 for a first offense, $400 for a second offense and $500 for a third offense.

Although Mississippi has a high rate of uninsured drivers, car insurance is still required by state law, even if the methods of enforcement have not yet been put entirely in place. According to Mississippi, car insurance law drivers must obtain minimum levels of liability insurance on a vehicle before they can take it on a public road. These minimums are currently set at $25,000 per person and $50,000 per accident in bodily injury liability insurance as well as $25,000 in property damage coverage. If a Mississippi resident does not want to purchase an auto insurance policy that meets these minimum levels of coverage set by the state they always have the option to post a bond or make a deposit in cash or securities with the state. A bond or deposit made with the state in lieu of purchasing a car insurance policy must be in the same amount as the combined total of bodily injury and property damage insurance required by the state. In addition to required liability coverage, when purchasing a policy in Mississippi drivers also have the option to voluntarily purchase a variety of other types of insurance coverage for their vehicle. One of the most common types of coverage that Mississippi motorists add to their car insurance policies is collision coverage. Collision coverage will pay for any damages to the insured vehicle should it be involved in an accident in which the driver of the insured vehicle is at fault. If the driver of the insured vehicle is not at fault the at-fault driver’s property damage coverage will pay for any damage. Comprehensive coverage is also popular with many drivers because it covers all sorts of damage to a vehicle not caused by another car, such as hail or debris on the road. Drivers also have the option of purchasing personal injury protection which will cover any medical payments as well as lost wages that result from injuries sustained in a car accident that was not the policy holder’s fault. Because Mississippi requires liability coverage and other forms of coverage are available to driver there is not much need for uninsured or underinsured motorist coverage in the state.

Until House Bill 480 passes the penalty for driving without insurance in Mississippi will remain the same as it was ten years ago. If a driver is pulled over for a traffic violation or involved in an accident they may be required to provide proof of insurance to law enforcement. If this proof cannot be provided the uninsured drive could face a fine as high as $1,000 and the registration of the vehicle could be suspended for up to 1 year. If the driver can provide proof of insurance or some other proof of financial responsibility at the time of their court hearing they could have their fine reduced and be permitted to reinstate their registration. Although these penalties are considered adequate the establishment of a complete database that can be consulted by law enforcement officers any time and anywhere should greatly increase the enforcement of current Mississippi car insurance laws. Such a database would allow an officer to know before he even pulls a vehicle over whether or not the vehicle meets the state’s financial responsibility requirements.

Find Smog Check Stations Near Me

Even though Mississippi drivers are not required to pass any smog check requirements, Mississippi-registered drivers can get a voluntary vehicle emissions test done. Check out our DMV & Emissions Testing Locations in Mississippi pages below to find a DMV office or testing location in your area.

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New Mexico Car Insurance

Last updated on November 20th, 2017

New Mexico Car Insurance – The state of New Mexico’s car insurance system is based on the principals of an at-fault system in which a driver can be found to be at-fault for an accident and will thus be financially liable for all injuries and damages sustained in the accident. In order to protect state residents from the financial burden of having to pay for an accident out of pocket, as well as to protect state motorist from having to pay for injuries or damages caused by another driver, New Mexico requires that all residents purchase a few different types of mandatory coverage. Bodily injury coverage tends to be the most important of all the types required by New Mexico car insurance law due to the fact that it will pay for the injuries of other drivers and their passengers involved in an accident in which the policy holder is at fault. The state requires that every vehicle maintain at least $20,000 in per person bodily injury liability coverage and $50,000 in per accident bodily injury liability coverage. Per person or individual bodily injury coverage is the amount that the insurance company will pay for the injuries sustained by an individual whereas per accident bodily injury coverage is the maximum amount that the insurance company will pay out in order to cover all of the injuries of sustained in an accident. Another type of coverage that is required by New Mexico is property damage liability coverage, which will cover any damage that the policy holder causes to the property of other drivers in an accident. New Mexico requires that every vehicle be insured with at least $10,000 in per accident property damage coverage. If a New Mexico wishes to, they will generally have the option to purchase more coverage than is required by the state. Purchasing larger amounts of liability coverage may increase the price of the insurance policy premiums but it will also reduce the risk of the policy holder having to personally satisfy any financial obligations that extend from an at-fault accident.

In addition to liability coverage, which is the only type of coverage that is required in New Mexico, drivers also have the option to voluntarily purchase a few other types of coverage that will increase the overall financial protection they receive if they are in an accident. Uninsured and underinsured motorist coverage is a popular type of optional coverage with many New Mexico residents because it protects them against uninsured and underinsured drivers. New Mexico residents with uninsured and underinsured motorist coverage stand to receive financial benefits if they are involved in an accident and the at-fault driver is uninsured or does not have enough coverage to pay for all of the injuries or damage that they caused during the accident. Collision and comprehensive coverage is another type of coverage that is often added to insurance policies in New Mexico. Although from a legal standpoint collision and comprehensive coverage is optional most vehicles that are purchased with financing will be required to maintain a certain amount of collision and comprehensive coverage in order to satisfy the insurance requirements of the lender. Collision and comprehensive insurance is similar to property damage liability coverage except that it covers the physical damage to the policy holder’s vehicle and not the vehicle of another party involved in an accident. A less common type of coverage for New Mexico drivers is medical payments coverage, which will cover the medical payments for the policy holder and any passengers in the policy holder’s vehicle that are the result of an accident. Unlike most types of insurance coverage medical payments coverage is not fault based, meaning that is can be used regardless of who was at fault in an accident.

If a New Mexico resident does not wish to purchase an insurance policy that will satisfy state standards they always have the option of providing self coverage. In the case of New Mexico, drivers that want to self insure must be able to prove that they have at least $60,000 available with which to pay for any damages or injuries resulting from an accident that is their fault. If a driver in New Mexico cannot prove financial responsibility, either through an insurance policy or a self insurance certificate, when pulled over or involved in an accident they will susceptible to various penalties allowed under state law.  The most common penalty for driving without insurance in New Mexico is a fine up to $300. In some cases, such as a second offense, a New Mexico resident that is caught driving without car insurance and cannot prove financial responsibility through other means could also have their vehicle’s registration suspended. If an uninsured driver goes to court and cannot prove that they had insurance at the time of a traffic stop or accident they could be charged with a misdemeanor and face increased penalties.

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Pennsylvania Car Insurance

Last updated on November 20th, 2017

Pennsylvania Car Insurance – The state of Pennsylvania requires vehicle owners to purchase two types of car insurance in order to legally driver their vehicle on a public road. These two types of insurance are liability insurance, which is required by almost every state, and medical benefits coverage, also known as personal injury protection or first party coverage. Liability coverage and medical benefits coverage may function in much the same way and cover the same type of cost but they differ in who they provide financial relief to. Liability coverage protects a policy holder from claims made against them and will typically pay up to a certain amount for injuries or property damage suffered by drivers other than the policy holder. By its very definition liability coverage requires that the fault or an accident be placed on one driver or another. All drivers involved in an accident may have liability coverage but it is only the insurance company of the driver that is at fault that will have to pay for injuries and damages. If a Pennsylvania resident were to only carry liability coverage, a common situation in many states, if they were involved in an accident that was considered to be their fault their policy would cover the injuries and damages to others but not the injuries or property damage incurred by them or the passengers in the insured vehicle. In order to ensure that each resident is able to financially afford medical attention should they need it after a car accident the state of Pennsylvania requires residents to purchase medical benefits coverage with each auto insurance policy. Unlike liability coverage, medical benefits coverage will pay out to the policy holder and any passengers in the insured vehicle regardless of which driver was at fault in an accident.

In the state of Pennsylvania just carrying liability and medical benefits coverage isn’t enough to satisfy state car insurance requirements; each type of coverage must also be carried in a certain amount. The minimum amount of medical benefits required by Pennsylvania auto insurance law for example is $5,000 and in most cases a car insurance company in Pennsylvania will not add medical benefits coverage to a car insurance policy in any amount under $5,000. Liability coverage on the other hand is a bit more complex since it is broke down into three different types of coverage, each of which functions differently. The first type is bodily injury liability coverage for a single person, the minimum required amount of which is $15,000. Bodily injury coverage for a single person is the maximum amount that the insurance company will pay for injuries sustained by a second party in an accident caused by the policy holder. The next is bodily injury coverage per accident, with minimum limits set at $30,000 per insured vehicle. This is the total amount that the insurance company will pay for all accident related injuries sustained by secondary parties. The third type of liability coverage required by the state of Pennsylvania is property damage coverage, $5,000 of which is required in order for a policy to meet state standards. Pennsylvania drivers almost always have the option to purchase more coverage than the state requires so that they can reduce the chance that they will have to cover any costs of an accident not covered by their insurance company.

In an effort to reduce the amount of lawsuits stemming from car accidents in the state of Pennsylvania, as well an attempt to reduce car insurance premiums, Pennsylvania allows residents to choose whether or not they want full tort coverage. Resident that choose full tort coverage will any anywhere from 10%-20% more in insurance premiums every year but they also completely preserve their legal rights if they are involved in an accident. Residents that choose limited tort coverage will receive a significant discount in car insurance premiums but will also forfeit many of their rights, such as the right to file a law suit, if they are involved in an accident.

Unlike some states, which have systems that allow for direct communication between the DMV and insurance companies, Pennsylvania still requires driver to provide proof of insurance the old fashioned way with an insurance ID card. If a Pennsylvania resident is pulled over involved in an accident the law requires them to provide proof of insurance to the officer on the scene; failure to do so can result in a wide range of penalties. For first offenders the penalty for driving without insurance typically consists of a $300 fine and the suspension of the driver’s license and vehicle registration for up to three months. For a driver to have the suspensions lifted after the term is up an additional $100 in fines or reinstatement fees will have to be paid to the Pennsylvania Department of Motor Vehicles.

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Maine Car Insurance

Last updated on November 20th, 2017

Maine Car Insurance – Most states, including Maine, have legal requirements that residents must meet in order to operate a vehicle. According to Maine car insurance law, residents of the state are required to maintain a certain amount of liability insurance on each vehicle that they own. Vehicle excluded from this requirement include those that are classified as non-highway vehicles and vehicles that are nonoperational. Every other vehicle that is operated on a public road must have at least $50,000 in per person bodily injury coverage and $100,000 in per accident bodily coverage. Additionally, vehicles registered in Maine must also carry a minimum of $50,000 in property damage liability coverage. The coverage minimums represent the least amount of each type of coverage that can be purchased and most Maine residents with an auto insurance policy are free to purchase more coverage than the state requires.  Maine is also one of the few states that require motorists to purchase uninsured and underinsured motorist coverage. The minimum amount of uninsured and underinsured motorist coverage required by state law mirrors that of the bodily injury coverage at $50,000 per person and $100,000 per accident. Like bodily injury and property damage coverage, uninsured and underinsured motorist coverage can also be purchased in amounts greater than the state mandated minimums. Each auto insurance policy sold in Maine must also include $2,000 in medical payment coverage. Medical payment coverage will help pay for any medical or funeral expenses for anyone that is riding in the covered vehicle at the time on an accident. For residents with vehicles that must meet state regulations the only way to avoid purchasing a car insurance policy that satisfies state requirements is to purchase an indemnity bond or elect to self insure. If a vehicle owner in Maine wishes to self insure they must first receiver authorization from the Interstate Commerce Commission. If a Maine resident does not wish to purchase an auto insurance policy will all of these different split limits state law also allows for the purchase of a single limit auto insurance policy with a minimum of $125,000 in coverage.

Along with establishing minimum car insurance requirements for residents of the state Maine car insurance laws also establish the penalties a driver can expect to incur if they are found to be breaking the law. Legally speaking, if a driver is pulled over or is involved in an accident they must be able to provide proof of insurance to the officer on the scene. In most instances a driver that is caught without the required levels of car insurance, and is unable to prove financial responsibility in some other way, will receive a fine ranging from $100 to $500. Drivers caught without insurance can also have their license and vehicle registration suspended as well. If the driver’s license and registration are suspended they will remain so until the driver can prove financial responsibility to the Maine Bureau of Motor Vehicles. This typically means that the driver found to be driving without insurance will be required to purchase an insurance policy that satisfies state requirements and provide proof of that policy to the BMV. Motorists that are involved in an accident while uninsured or have a history of driving without insurance may be required by the state to file an SR-22, which is basically a certificate that proves you have auto insurance.

Like most states Maine insurance laws set regulations not only for individual residents but for insurance companies as well. Any insurance company that wishes to business within the state is required to meet certain requirements, such as offering drivers a minimum amount of coverage. Insurance companies in Maine are also required to offer certain types of discounts to their customers if they meet the state’s criteria. A popular discount in Maine for example is the over 55 benefit which is obviously extended to drivers over the age of 55, though in order to qualify they must successfully complete an accident prevention course. This benefit requires that insurance companies offer discounted rates to Maine residents that are over the age of 55 completed the mandatory accident-prevention course. The only notable exception to this requirement is if a driver that is eligible for the discount has been in an at-fault accident or had their license suspended within the last three years. In addition to mandatory discounts it is common for car insurance companies in Maine and most other states to offer a variety of other discounts to their customers as a form of incentive. Drivers may get a discount for completing a defensive driving course for example and young drivers may get a discount if they maintain good grades while in high school and college. Another state regulation prevents auto insurance companies from selling sell motorcycle liability policies that exclude coverage for any passengers on a motorcycle.

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New Hampshire Car Insurance

Last updated on November 20th, 2017

New Hampshire Car Insurance – New Hampshire is the only state in the U.S. that does not require residents to maintain minimum levels of coverage on their vehicles. Every other state requires that a vehicle owner meet certain coverage requirements but in New Hampshire residents get to decide for themselves just how much, if any, insurance coverage they want to purchase for their vehicle. The only exceptions to this rule are drivers that have been found guilty of drunk driving or have committed some other driving violation. Drivers with a DUI or other blemishes on their driving record may be required to maintain certain amounts of liability coverage for a set period of time. If a driver is convicted of a qualifying violation they will be notified by the state in writing that they are required to obtain liability insurance. If a driver is convicted of drunk driving for example they will be notified by the state that they are required to maintain liability insurance for a period of three years. A second DUI conviction will result in a New Hampshire motorist having to maintain liability coverage on their vehicle for at least 5 years.

Although car insurance is not required by law in the state of New Hampshire most residents still maintain at least some sort of coverage on their vehicles thanks to the car insurance requirements for banks that supply auto loans. Like most states the institutions that provide auto loans in New Hampshire require that a certain amount of coverage be maintained on the financed vehicle until it has been completely paid off. New Hampshire lenders require buyers to maintain car insurance on financed vehicles in order to protect both the owner and the institution that financed the vehicle purchase. If a vehicle is totaled in a wreck and it is only two months old, if the owner does not have insurance they will not be financially reimbursed for their loss and will still be legally obligated to continue paying for a vehicle that is no longer drivable. Drivers that voluntarily purchase car insurance for their vehicle are encourage by the state to purchase certain amounts of liability coverage with their policy, including $25,000 in individual bodily injury coverage, $50,000 in per accident bodily injury coverage and $25,000 in property damage coverage. These are the levels of coverage that the state estimates every driver should have in order to satisfy any financial responsibility requirements that may result from an accident. The state also recommends that New Hampshire car insurance policies include uninsured and underinsured motorist coverage that is at least equal to the suggested minimum levels of bodily injury coverage. New Hampshire residents that for one reason or another are required to purchase an auto insurance policy must meet these minimum levels for liability, uninsured and underinsured motorist coverage in order for the policy to satisfy state requirements.

Despite the fact that most New Hampshire residents are not legally required to have car insurance on their vehicle if a driver is in an accident and are found to be at-fault they can still be held financially liable for any injuries or damages sustained in the accident. If the at-fault driver in an accident does not have the coverage necessary to cover the injuries and damages to other drivers and their property they will be required to post a bond or cash that is equal to the estimated cost of the accident. New Hampshire motorists that drive without insurance are also susceptible to lawsuits filed by other drivers involved in an accident. An uninsured driver that is responsible for an accident is completely at the mercy of the other drivers in the accident and if fault of the driver can be proven in court they could be hit with financially debilitating penalties. The state may also require an at-fault uninsured driver to file an SR-22 insurance form while also requiring them to purchase an insurance liability policy if they wish to continue to legally operate a vehicle on public roads.

Once a New Hampshire auto insurance policy is purchased by a resident of the state it can be rather hard to cancel, especially if the policy has been active for over 60 days. According to New Hampshire car insurance law an auto insurance policy that has been active for 60 days or more cannot be cancelled except in specific situations. Such a situation includes the failure of the policy holder to pay the policy premiums, though even then the insurance company is required to send advanced notice to the policy holder before the policy can actually be terminated. A policy can also be cancelled upon request of the policy holder or if the policy holder fails to sin a residency form attesting to the fact that they are a legal resident of the state.

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New Jersey Car Insurance

Last updated on November 20th, 2017

New Jersey Car Insurance – New Jersey, like almost every other state in the county, requires that vehicles registered in the state be insured with various types of car insurance. However, unlike most other states, the limits of coverage required by the state in order for a vehicle to be legal are not set in stone. New Jersey car insurance law requires that every vehicle have three specific types of coverage in order to be legally driven on public roads. Like most states, one of the types of coverage that New Jersey requires its residents to purchase is liability coverage. Liability coverage, which is designed to financially protect the policy holder from any injuries or damages sustained in an accident that was their faults, is typically seen in tort states where fault is placed on one driver or another but New Jersey’s hybrid no-fault car insurance system still allows fault to be placed on a driver in certain circumstances. The most basic policy required by New Jersey requires only that a driver obtain property damage liability insurance in the amount of $5,000 or more. A standard policy in New Jersey includes $15,000 in per person bodily injury coverage and $30,000 in per accident bodily injury coverage though this type of liability coverage is optional, meaning that New Jersey residents can decide for themselves whether or not they would like to add bodily injury coverage to their policy. If a driver opts for a basic policy and does not include bodily injury liability coverage they will still be financially responsible for any injuries sustained in an accident that is their fault. This can leave New Jersey drivers open to lawsuits from other drivers and even wage garnishments by the state if the uninsured driver cannot pay for the other party’s injuries. According to the state of New Jersey the basic policy is recommended for drivers with few family considerations and limited financial assets. Young drivers and drivers that are single often opt for the basic policy as a means to save money.

In addition to liability coverage New Jersey also requires residents to maintain personal injury protection coverage on any vehicle they own. Personal injury protection works in much the same way as bodily injury liability coverage though instead of paying for the injuries of everyone involved in an accident other than the policy holder personal injury protection will pay for the injuries of the policy holder and will also typically cover injuries sustained by passengers in the policy holder’s vehicle. The minimum amount of personal injury protection that must be purchased with an auto insurance policy in New Jersey is $15,000 for both the basic and standard policies though most residents are eligible to purchase as much as $250,000 in personal injury protection if they wish.  Uninsured motorist coverage is the last of the three types of coverage required by the state of New Jersey. As its name suggests, uninsured motorist coverage is intended to protect the policy holder in the event that they are in an accident with an uninsured motorist. Uninsured and underinsured motorist coverage must be carried in amounts that are equal to the chosen bodily injury liability coverage amounts. As with bodily injury liability coverage, uninsured and underinsured motorist coverage is not included in the basic policy offered to New Jersey residents. The basic policy also does not offer payments for legal fees in the event that the policy holder is sued by a driver involved in an accident. For those New Jersey drivers that would like to purchase collision and comprehensive coverage, both of which cover damage to the insured vehicle, the purchase of a standard policy is required since basic policy does not allow for the purchase of these optional forms of coverage. Despite the various options available to drivers in New Jersey the state still has the second highest insurance cost in the country with residents paying an average of $1,152 per year in car insurance premiums.

If a New Jersey motorist is caught driving without car insurance in their home state they will be subject to a citation and will more than likely be required to pay a fine. Uninsured drivers also run the risk of having their license or registration suspended if they are caught by law enforcement while driving uninsured on a public road. The first time a driver is caught driving without insurance in New Jersey they will face a minimum $300 fine that could be as much as $1,000 depending on the situation and the driver’s record. Community service is also another common penalty for driving uninsured. In addition to fines uninsured drivers may have to pay as much as $250 in DMV surcharges for up to three years and will also be responsible for paying any court costs that are associated with the infraction.

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Montana Car Insurance

Last updated on November 20th, 2017

Montana Car Insurance – The car insurance laws in place in Montana require drivers to maintain certain amounts of liability insurance on most vehicles driven in the state. The only vehicles exempt from the requirement are motorcycles and any other vehicle with less than three wheels. Vehicles with four wheels o more are required by state law to have at least $25,000 in bodily injury coverage per person, $50,000 in bodily injury coverage per accident and $10,000 in property damage coverage. Since Montana is a tort state, where fault must is placed on one driver or another in an accident, the required liability coverage is intended to help an at fault driver cover of another driver’s injuries or property damage if they are found to be at fault in the accident. Many Montana motorists opt to purchase more coverage than the state requires so that they reduce the risk of being financially liable for the costs of any accident that exceed the minimum coverage amounts. If Montana drivers do not want to purchase a car insurance policy that meets state requirements there are other options available that will allow them to comply with the state’s financial liability law. If a vehicle owner has over 25 vehicles registered in their name they will be able to obtain a self insurance certificate, releasing them of the states requirements. Because self insurance requires someone to own 25 or more vehicles it is typically only an option for the extremely wealthy or companies such as car dealerships that have dozens of vehicles on hand. Montana motorists that do not own 25 or more vehicles but still want to avoid buying an auto insurance policy always have the option of purchasing a surety or making a cash deposit with the state treasurer equal to the amount of required liability insurance.

Unlike some states, which dictate how car insurance companies calculate the rates of their customers and require certain surcharges for certain driving infractions, the state of Montana allows insurance companies to calculate insurance premiums based on their own criteria and formulas. Even with this freedom most car insurance companies in Montana still take into account a few common factors when calculating premiums. One of the most common factors that car insurance companies use to determine a driver’s insurance premium is age. Older drivers tend to be viewed more favorably by insurance companies because they have more experience driving and represent less of a risk than younger drivers just starting out. Insurance companies will also take into account a driver’s record when calculating premiums, a Montana driver with a clean driving record will likely get a substantial discount while a driver with a tarnished driving history will end up paying more in premiums in comparison. Additionally, Montana car insurance companies also typically take into account the make, model and value of the car being insured as well as the part of the state where the vehicle is kept. The lower the value of the vehicle the lower insurance premiums tend to be and the more crime an area has the more vehicles registered in those areas tend to cost when purchasing insurance policies.

Montana is one of the many states in the country that consider driving without car insurance to be a misdemeanor. This means that a driver could potentially end up serving time in jail if they are caught driving without insurance. Generally, the first time that a Montana motorist is caught driving without insurance they will be fined between $250 and $500 though the law does allow for the punishment for such an offense with up to 10 days in jail. The first offense will also result in five points being added to the driver’s license, accumulating 30 points will result in mandatory revocation of the license. Drivers that are caught without insurance a second time will be punished with a minimum fine of at least $350 and could also be required to spend 10 days in jail. A second offense will also result in an automatic 90 day suspension of the driver’s license, regardless of the point total on their license. A third or subsequent offense will carry a mandatory fine of no less than $500, suspension of the driver’s license and restricted registration for a period of 180 days. In the near future the state of Montana hope to implement an online coverage verification system that will help government officials keep track of the car insurance status of vehicles registered within the state as well as discover uninsured vehicles in a much more efficient manner. Once it is launched insurance companies will be required to instantly update any changes to a vehicle’s insurance status, this includes reporting policy lapses, cancelations, renewals and even purchases. Systems such as this are in use in many states and have proven quite effective at reducing the rate of uninsured drivers.

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Virginia Car Insurance

Last updated on April 26th, 2018

Virginia Car Insurance – The Commonwealth of Virginia is one of just a few states that do not require a vehicle owner to purchase an insurance policy for their vehicle in order to legally drive it on a public road. Residents of Virginia that opt not to purchase an auto insurance policy for their vehicle must pay a mandatory $500 uninsured motor vehicle fee. This fee must be paid every year when the vehicle registration is renewed and every time a vehicle is registered with the state the owner must certify that the vehicle they are registering is either insured or uninsured. This means that residents are legally required to purchase an insurance policy or pay the uninsured motor vehicle fee; driving an uninsured vehicle without paying the uninsured motor vehicle fee is in direct violation of Virginia car insurance law. Drivers that falsify their insurance status when registering a vehicle in order to avoid paying the uninsured motorist fee could face serious penalties. It is also import to note that drivers who choose to pay the uninsured motor vehicle fee instead of purchasing an insurance policy receive no benefits or protection for paying the fee and will still be held financially responsible if they are found to be at-fault in an accident.

The residents of Virginia that choose to purchase an auto insurance policy must also purchase minimum amount of a few certain types of coverage in order to satisfy Virginia car insurance requirements. If a Virginia motorist buys an insurance policy that does not meet all of the following minimum requirements the vehicle owner will still be required to register the vehicle as uninsured and pay the required uninsured motor vehicle fee. In order to meet state requirements ever car insurance policy purchased in Virginia needs to include at least $25,000 in single person bodily injury coverage, $50,000 in single accident bodily injury coverage and $20,000 in property damage liability coverage. As an at-fault state Virginia law stipulates that the driver that is found to be at-fault for an accident will also be financially responsible for any injuries or damages that are caused by the accident. Liability insurance is meant to help Virginia residents meet this financial responsibility requirement in the event that they are involved in an accident that is determined to be their fault. Aside from the purchase of a liability car insurance policy or the payment of the uninsured motor vehicle fee a select few residents that own business vehicles are able to purchase a surety bond or choose to self-insure in order to meet state requirements.

In order to monitor the car insurance status of every vehicle registered with the DMV the state of Virginia has implemented an insurance verification program. This program allows insurance companies to instantly provide the DMV with electronic updates on the insurance status of a vehicle. Every time an insurance company cancels, renews or writes a new car insurance policy in the state of Virginia they are required by the state to submit an update to the DMV.  The insurance status of Virginia vehicles and residents is also in part monitored and reported by the residents themselves. If a driver is involved in an accident in Virginia they are able to voluntarily file an accident report with the DMV and in the process they can indicate if they suspect that the other driver involved in the accident did not have insurance. After such a report is filed the DMV will send a request for proof of insurance to the other driver involved in the accident. If the request goes unanswered the vehicle owner will have their license suspended, but if they respond with proof of insurance it will be forwarded to the driver that filed the accident report initially. As in every other state uninsured drivers in Virginia are also discovered by law enforcement officers when they are pulled over, involved in a car accident or run into a roadside check. If a driver is discovered to be uninsured and has not paid the uninsured motor vehicle fee, the DMV will suspend their driving privileges immediately upon notification of their uninsured status.

In the Commonwealth of Virginia, if a driver is found to be driving uninsured and they have not paid the uninsured motor vehicle fee to the DMV they are at risk of having their vehicle registration suspended in addition to being required to pay a $500 fine. Uninsured drivers that are convicted by the courts also lose their right to legally drive an uninsured vehicle and will be forced, for a period of at least three years, to maintain a liability insurance policy on their vehicle. Uninsured drivers that break the law will also be required to obtain an SR-22 form from their insurance company that can be used to verify future insurance coverage.

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