Make Sure You are a Financially Responsible Driver

The best way to protect your car during accidents is by purchasing a collision insurance policy. If ever your car gets damaged, this policy will provide you with the cash you need to afford repairs and buy replacement parts. If the accident is your fault, however, and you happen to injure someone, then the policy you need to carry is car liability insurance.

Collision insurance, which you may or may not purchase, is meant to protect your car; car liability insurance, however, which is meant to protect an innocent accident victim, you will need to have as it is mandated in all U.S. states, except in New Hampshire.

The car insurance law was first made compulsory by the states of Massachusetts and Connecticut in 1925. It was made compulsory to make sure that drivers, who caused accidents and injured people, did not default in paying their victims the compensation that they deserved. Today, when talking about car liability insurance, states require either the “tort” or fault insurance policy, or the “no-fault” insurance coverage.

The type of car insurance coverage that drivers will need to purchase depends on what is recognized in the state where they reside. In the 38 “tort” states, tort liability insurance is the coverage required; in the 12 no-fault states, what drivers need to carry is the no-fault car insurance.

In tort states, an accident victim is allowed to file a civil lawsuit against the at-fault driver for damages, which include cost of medical treatment and hospitalization, lost wages, pain and suffering. This is usually the case if the compensation paid to the victim by the at-fault driver’s insurance provider is below the amount to cover all damages. In “no-fault” states, though, compensation is paid by the respective insurance providers of the drivers involved in an accident – this is regardless of whose fault the accident was. No-fault insurance is required in Florida, Hawaii, Kansas, Massachusetts, Michigan, Minnesota, New York, North Dakota, and Utah (in the states of Pennsylvania, New Jersey and Kentucky, drivers have the option to carry either no-fault car insurance or tort car insurance).

Not all those who drive, however, carry car liability insurance due to the high cost of insurance premiums. According to Habush Habush & Rottier S.C. ®, an accident law firm, drivers can go online where they can browse insurance quotes and compare the best polices that will fall within their budget. Independent car insurance companies believe that drivers should not be made to pay an insurance premium that is much more that what they need to pay. Through these online quotes, they will be able to find the best and cheapest policy no matter what their driving history is.


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