Is automobile insurance required?
Most states require car owners to buy a minimum amount of bodily injury and property damage liability insurance before they can legally drive their cars. All states have financial responsibility laws, which means that people involved in an automobile accident will be required to furnish proof of financial responsibility up to certain minimum dollar limits. Most drivers purchase automobile liability insurance to comply with state financial responsibility laws. The mandatory requirements in your state may include minimum amounts of the following types of coverage: • Bodily injury liability (BIL) • Physical damage liability (PDL) • No-fault personal injury protection (PIP) • Uninsured motorist coverage (UM) • Underinsured motorist (UIM) The following types of coverage are not required by any state but if you have a car loan, your lender may insist you carry these until you pay off your loan: Optional insurance coverage includes: • Collision • Comprehensive Return to index . . .
Most states have minimum coverage requirements that may include, for example: Medical payment coverage Liability coverage for both personal injury and property damage Insurance on vehicles that may be located in another state or even if inoperable if they are registered If your vehicle is financed, the lender may require a specific type or amount of insurance
