The purpose of mandatory car insurance is to provide proof that a driver will be able to pay for liabilities in the event of a car crash in Sandpoint, ID. While there is no federal mandate that requires all drivers across the country to buy auto insurance, every state has different laws regarding the issue of auto insurance policies.
When did auto insurance become mandatory?
The debate on making auto insurance compulsory in the United States goes back several decades. Proponents of making auto insurance compulsory argued very reason that it is possible for a car owner to be unable to pay for damages to other people’s property in the event of an accident. It became apparent that some car owners or drivers with permission from the vehicle owners can cause a car crash, yet be unable to pay for damages and other expenses even when it has been determined that they were at-fault at the time of the crash. Massachusetts and Connecticut were the first states to enact compulsory car insurance laws in the 1920’s. The purpose of creating these laws was to help at-fault drivers resolve claims if they default on their accident payouts. Today, nearly every state has enacted mandatory auto insurance laws.
What is considered mandatory?
It might sound weird why health insurance, which is always attracting heated debate in Washington, is not mandatory yet auto insurance is mandatory. Your health insurance is all about you and your loved ones. Typically, the collision coverage option is not compulsory when the vehicle is paid off because it is protection for you. On the other hand, liability insurance from The Insurance Shop USA is almost always compulsory because it protects other road users or other people’s property. Essentially, if at-fault drivers won’t be held liable or be able to compensate others for the losses they are responsible for, the economy would suffer.
Protect yourself financially by investing in sufficient auto insurance from The Insurance Shop USA and you won’t have to worry about losing your assets or savings in case of a car accident. Our friendly agents will guide in choosing the right auto insurance coverages suitable for your budget and lifestyle.