As a general rule, motor vehicle owners must carry a minimum insurance coverage to cover potential loss, damage or physical injury involving an owned vehicle. In the United States, the laws prescribing the policies and guidelines for motor vehicle insurance tend to vary, as each jurisdiction take into account different considerations in formulating statutory motor vehicle insurance laws.
Motor Vehicle Laws Vary in Every U.S. Jurisdiction
While nearly all U.S. jurisdictions have legislated laws governing motor vehicle insurance coverage, the states of Virginia, New Hampshire and Mississippi have distinct laws that may or may not require vehicle owners to take out a car insurance policy. Below are the key takeaways of car insurance policies in the three states:
The government of Virginia does not require car owners to obtain motor vehicle insurance, car owners are instead required to additionally pay the state Department of Motor Vehicle (DMV) an Uninsured Motor Vehicle Fee of $500 on top of the regular vehicle registration fees.
The additional $500 though, is not for the purpose of securing a state-provided vehicle insurance. In the event that an uninsured car figures in a car accident, the owner of the car is personally liable for any resulting property damages or bodily injury or injuries.
In New Hampshire, obtaining a motor vehicle insurance is not mandatory. However, the exemption does not apply to car owners who have been convicted of serious misdemeanors such as Driving Under the Influence (DUI), hit-and run accidents or a second citation/ticket for speeding violation.
In cases when a car insurance coverage is a requirement, the vehicle owner must obtain a minimum amount of $25,000 third-party liability insurance per person, up to a maximum of $50,000 coverage; and a minimum $25,000 for property damage for every accident involving a motor vehicle. In addition, a required insurance coverage must include a minimum$1,000 coverage for medical payments.
The state of Mississippi requires all motor vehicle drivers to carry and maintain liability car insurance that is strictly in accordance with the prescribed minimum amounts of coverage required by the state. They are similar to New Hampshire’s, $25,000 third-party liability coverage for bodily injury or death per person, up to a maximum of $50,000 for death or total bodily injury plus a minimum $25,000 coverage for property damages.
Factors that Affect the Cost of Auto Insurance In Each State
Insurance information website carinsurancesnearme.com furnishes information about United States jurisdictions that have the most expensive as well as the least expensive cost of motor vehicle insurance. That being the case, the state in which a car insurance holder resides is a determining factor in evaluating the cost of insurance required.
As it is, while car insurance providers normally take into consideration the make of the vehicle, and the car owner’s driving history, age, gender, marital status and credit score, there are certain state-specific factors that insurance providers also consider in calculating their risk.
Examples of such factors include state insurance laws, crime rates, claim rates and the related statistics pertaining to vehicular accidents and number of uninsured drivers in the state in which the insurance coverage applies.
When such state-specific factors are present, calculation of insurance risks will also take into account the location/s where a car owner usually drives to as well as the frequency by which he drives to high-risk locations. When the risks calculations yield a high risk score, the insurance provider increases the monthly insurance premiums. Needless to stay, low risk scores correspondingly have lower monthly premiums.
Those being examples of factors that can influence the cost of a car insurance policy, Car Insurance Near Me suggests that when buying a new car, it would be wiser to shop around for car insurance policies that could cost lower than the car insurance policy will include as part of the sales deal.