Insurance Auto Insurance & Registration

The Law on Car Insurance

    Liability Insurance

    • Liability insurance covers damage you cause to someone else with your vehicle. It might be property damage or personal injury.

    Required

    • As of 2009, liability insurance is a requirement in all states except Wisconsin and New Hampshire.

    Wisconsin

    • If you live in Wisconsin, the law changes June 1, 2010, when liability insurance becomes mandatory.

    Penalties

    • Most states invoke a fine and points to your license for driving without insurance. Almost all states revoke your license until you prove financial responsibility.

    Parked

    • Even if you don't drive your vehicle but leave it parked on the street, if another car hits it and you don't have insurance, you're in trouble.

    Full Coverage

    • Legally, full coverage may be a requirement of a lender. If you don't have insurance on your vehicle, your lender legally puts comprehensive and collision insurance on the car. You pay the premium. Normally the cost is quite inflated.

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