Car Insurance Regulations

Top FAQs for Car Insurance Regulations

Car Insurance Laws by State - FindLaw

Category: Known As A Mandatory Minimum Drivers Must Purchase And Maintain A Certain Level Of Car Insurance From An Insurance

Here you will find a state-by-state chart of car insurance laws, including basic minimums for each coverage type and any exceptions. Learn more at FindLaw.com.

Car insurance is required in almost all states. Known as a mandatory minimum, drivers must purchase and maintain a certain level of car insurance from an insurance company in case of an accident or injury to another person or property. If you fail to maintain coverage, you could be in violation of the law. There are a handful of states that don't require you to purchase car insurance, but instead, show evidence of financial responsibility in some other way, such as with a surety bond, a cash deposit with the state, or a certificate of self insurance.

Below, you will find a state-by-state chart of car insurance laws, including the type of liability insurance you are required to carry and basic minimums for each coverage type. Remember, these are only minimums and you may wish to purchase additional coverage depending on your specific needs.

All motorists must be able to prove financial responsibility in the event of an accident. If you do purchase car insurance, at a minimum must buy Bodily Injury and Property Damage Liability

Note: State laws are always subject to change, usually through the enactment of new legislation but also through court decisions and other means. Contact an attorney or conduct your own legal research to verify the state law(s) you are researching.

If you're confused about poorly written car insurance laws, you aren’t alone. Considering how complicated collision coverage, deductibles, and mandatory minimums can be, it's no wonder many drivers turn to attorneys for help deciphering the jargon. Connect with an attorney who specializes in car accidents and insurance to help navigate the complexities of the law.

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How State And Federal Laws Regulate The Car Insurance Industry

This article explains that both federal and state governments regulate car insurance. It also explains how and why these regulations are in place.

Every industry needs to have regulations in place to ensure the protection of both businesses and consumers. In reality, the federal government leaves much of these car insurance regulations up to each state to implement. As a result, each state has its own set of laws that govern auto insurance. In most states, federal car insurance law does state that all drivers must secure some type of insurance policy in order to be able to drive a vehicle. The purpose of car insurance is to protect drivers against property damage and injury expenses that can occur as a result of a car accident or claim. Each state has its own department of insurance that creates and enforces rules to regulate how insurance is sold. These regulations include minimum insurance coverages, competition, the rights of consumers, and solvency of insurance companies.

Consumers are protected by car insurance regulations that serve to encourage competition among insurance companies. The more insurance companies there are offering insurance, the lower the premiums will be. Competing insurance companies will lower their premiums in order to entice consumers to purchase their products. This also eliminates monopolies that try to gather enough of the market so that competition is not available.

Car insurance claims can often be in the thousands or even millions of dollars. Federal car insurance law as well as state care insurance regulations dictate that insurance companies must have a certain amount of money on hand in order to pay off these claims. This amount is usually fairly large just in case of a major catastrophe, which could be fabricated or caused by a natural disaster.

Another item that is regulated by the state is the minimum amount of insurance as well as the type of insurance that is required for a driver to purchase. For example, most states require a driver to purchase at least liability insurance, which covers damages to another person's property or injuries to another person. If the insured driver is in an accident that is deemed their fault, they are responsible for all expenses incurred by the other drier. These expenses may include damage to another vehicle or personal property, as well as injury to another driver, passenger, or pedestrian.

Car insurance regulations are in place not only to protect the consumer, but to protect the insurance companies as well. Auto insurance fraud is a huge issue facing many insurers and without regulations in place, insurance fraud can drive up the premiums for all motorists. Investigators pour over every claim that is files to ensure that they are legitimate and no fraud is involved. This actually benefits both the insured and the insurer.

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Car insurance laws by state – Nationwide

Category: Auto Insurance Laws Vary From State To State

Auto insurance laws vary from state to state, but all states require some type of car insurance or proof of financial responsibility. It may seem like an extra cost, but actually car insurance protects you, your family and your vehicle if you’re in an accident or if your vehicle is damaged.

Liability Insurance covers injuries that you, the designated driver or policyholder, cause to someone else. You and family members listed on the policy may also be covered when driving someone else’s car with their permission.

State car insurance laws typically require medical coverage that pays for the treatment of injuries to the driver and passengers of the policyholder’s car. PIP may cover medical payments, lost wages or other costs resulting from an accident.

This auto insurance coverage pays for damage you (or someone driving the car with your permission) may cause to someone else’s property. Besides vehicle damage, it can include damage to lamp posts, telephone poles, fences, buildings or other structures your car hits.

This coverage protects you in the event your car is damaged in a crash with another vehicle or object, or in the event the vehicle flips over. Collision insurance may also cover damage caused by potholes in the road.

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Arizona Car Insurance Laws (Updated 2022) | The Zebra

Category: Every Driver Must Have At Least The Minimum Amount Of Liability Coverage And Must Also Carry Proof Of Insurance While Driving

Sep 29, 2022 · Every driver must have at least the minimum amount of liability coverage and must also carry proof of insurance while driving. This can also be referred to as your proof of …

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Insurance Regulation Overview - FindLaw

Read this FindLaw article to gain a general understanding of how insurance regulation seeks to protect consumers and promote fairness and the financial health of the insurance industry.

For those of us who have insurance, we count on it to be there when we need it most. Whether you’ve contracted a serious illness, lost your home in a natural disaster, or caused a major car accident, you’re relying on those insurance policies to help you through. Because the insurance industry affects so many people as well as the financial system as a whole, there are many state and federal laws regulating how the business is conducted. Read on to gain a general understanding of how insurance regulation seeks to protect consumers and promote fairness and the financial health of the insurance industry.

In the U.S., the states have been the primary regulators of the insurance industry. However, in the mid-20th century, the Supreme Court ruled that the insurance industry was subject to federal legislation, including federal antitrust laws.

In response, Congress enacted the McCarran-Ferguson Act, which stated that no federal law could supersede state insurance regulations unless that federal law specifically addressed the business of insurance. Furthermore, the Act specifically exempted the insurance industry from federal antitrust laws as long as the state had its own antitrust statute which applied to the insurance industry operating there. The McCarran-Ferguson Act remains in effect, though there have been efforts to repeal or amend it, especially with regard to the health insurance industry.

Despite the fact that the states are the primary regulators of the insurance industry, there are continued efforts to give the federal government more of a role in regulating the business of insurance, especially with regard to maintaining the systemic and financial solvency of the industry. Some important federal insurance regulations and oversight entities include the following:

Affordable Care Act ("Obamacare"): Instituted health insurance reforms, including requiring most individuals to have health insurance; prohibiting insurance companies from denying coverage to people with pre-existing conditions; initiating minimum requirements for health care policies.

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Ohio Car Insurance Laws: Guide to Insurance Requirements

Is it illegal to drive without auto insurance in Ohio? How do I recover damages if I’m hit by an uninsured driver? What if my insurer is ignoring me?

Ohio has a fault-based insurance system. This means that the person who is responsible for an accident is required to pay for the damages. So how much liability insurance are you required to carry and what happens if the at-fault driver is uninsured?

Automobile liability insurance is mandated by most states, and Ohio is no different. Though the prospect of paying $141 per month (the average cost of auto insurance in Ohio in 2019) isn’t likely to get you excited, liability insurance might just protect you from financial ruin.

If you cause a car crash in Ohio and don’t have insurance, the injured person may be able to file a lawsuit against you personally, potentially garnishing your wages and even take your home.

Here at Enjuris, we don’t want to see you suffer financially. With that in mind, let’s take a look at auto insurance laws in the Buckeye State, including what to do if you’re hit by an uninsured driver.

This means that the person responsible for causing a car crash is also responsible for paying for the damages. (This is different than a no-fault insurance system in which all drivers in an accident, no matter who’s responsible, turn to their own insurance policies to cover the damages.)

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Tennessee Car Insurance Laws | Bankrate

Category: Car Insurance

From the Smoky Mountains to Graceland and everywhere in between, the state of Tennessee has a multitude of fascinating places to explore. But according to Tennessee insurance laws, residents won’t be able to drive to any of these sites without meeting the minimum insurance requirements.

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Sara Coleman is an insurance contributor at Bankrate. She has a couple of years of experience in writing for insurance domains such as The Simple Dollar, Reviews.com, Coverage.com and numerous other personal finance sites. She writes about insurance products such as auto, homeowners, renters and disability.

Angelica Leicht is an insurance editor on the Bankrate team. She is truly passionate about helping readers make well-informed decisions for their wallets, whether the goal is to find the right comprehensive auto policy or the best life insurance policy for their needs.

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our Insurance Disclosure .

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Michigan Car Insurance Laws 2022 - Policygenius

Category: Car Insurance

Learn about Michigan car insurance laws and requirements so you're informed about how much coverage you need to legally drive.

Michigan has some of the most expensive car insurance rates in the country, and the state’s extensive car insurance requirements are part of what makes rates so high.In 2020, Michigan lawmakers came together to make major changes to state car insurance laws, with the goal of reducing insurance costs for drivers in the state.

Whether you’re a Michigan driver buying car insurance for the first time or you’re checking to make sure you have the right amount of car insurance, here’s what you need to know about auto insurance laws and requirements in the Great Lakes State.

Michigan has some of the most comprehensive insurance requirements in the country. While some no-fault states have low liability requirements because drivers are expected to file a claim with their own insurance after an accident, Michigan has some of the highest liability requirements in the country along with the highest required levels of PIP coverage.

Liability coverage is the portion of your car insurance policy that pays for damage you cause to other drivers in an at-fault accident. It’s divided into bodily injury liability, which covers the other driver’s injuries, and property damage liability, which covers damage you do to their car or other property.

Drivers in Michigan are required to have a minimum of $50,000 per person and $100,000 per accident in bodily injury liability insurance and $10,000 in property damage liability coverage You may see that written out as 50/100/10. Michigan drivers are also required to have a minimum of $1 million in PPI coverage, which covers the cost of damage to physical property resulting from a car accident.

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Florida Insurance Requirements - Florida Department of Highway Safety and Motor Vehicles

Category: Must Show Proof Of Personal Injury Protection (PIP) And Property Damage Liability (PDL) Automobile Insurance

Language | Idioma English Español General Information Before you register a vehicle with at least four wheels in Florida, you must show proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance. PIP covers 80 percent of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury, no […]

Before you register a vehicle with at least four wheels in Florida, you must show proof of Personal Injury Protection (PIP) and Property Damage Liability (PDL) automobile insurance. PIP covers 80 percent of all necessary and reasonable medical expenses up to $10,000 resulting from a covered injury, no matter who caused the crash. PDL coverage pays for damage to another person’s property caused by you or someone else driving your insured vehicle.

have a minimum of $10,000 in PIP AND a minimum of $10,000 in PDL. Vehicles registered as taxis must carry bodily injury liability (BIL) coverage of $125,000 per person, $250,000 per occurrence and $50,000 for (PDL) coverage.

purchase the policy from an insurance carrier licensed to do business in Florida. (If you are new to the state, you may ask your agent to transfer your current insurance to a Florida policy.)

You must obtain the registration certificate and license plate within 10 days after beginning employment or enrollment. You must also have a Florida certificate of title for your vehicle unless an out-of-state lien holder/lessor holds the title and will not release it to Florida.

Do not cancel your Florida insurance until you have registered your vehicle(s) in the other state or have surrendered all valid plates/registrations to a Florida driver license office and motor vehicle service center or Tax Collector’s office. If you are keeping the insurance carrier, they can change your coverage to your current state of residence when you make the registration change.

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Laws & Regulations

The Pennsylvania Bulletin publishes proposed regulations when the rulemakings are promulgated by the department. Final form and final omitted regulations are published once the Regulatory Review Act process has been completed. The Pennsylvania Bulletin is available at www.pabulletin.com

Independent Regulatory Review Commission - The commission, established in 1982 by the Legislature, is a nonpartisan body that reviews proposed rulemakings, final rulemakings and final omitted rulemakings submitted by all state agencies except the Game Commission and the Fish and Boat Commission. The five-member commission is charged with ensuring regulations meet specific criteria established under the Regulatory Review Act (71 P.S. §§745.1-745.15).

Proposed and Final Form Regulations - Regulations are designed to implement, interpret, or prescribe law or policy or to describe the organization, procedure, or practice requirements of an agency, including the amendment, repeal or suspension of an existing regulation. A regulation has the force of law and is binding on both the agency and anyone affected by the rule.

Disclaimer - The proposed and final form regulations are furnished as a courtesy by the Pennsylvania Insurance Department. The provided links are to the Pennsylvania Bulletin. The Pennsylvania Bulletin is the commonwealth's official gazette for information and rulemaking. For more information on the commonwealth's regulatory process please visit the Independent Regulatory Review Commission's website.

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Georgia Car Insurance Law: Everything You Need to Know

Georgia car insurance laws require you to carry a minimum level of car insurance. However, many drivers may consider buying additional coverage.

These minimum coverages refer to the maximum that your insurance company will pay following an accident if you're at fault. Bodily injury liability only covers medical that you cause to another driver and their passengers. Property damage only covers damages that you cause to another driver's personal property. It does not cover your own property damages in an accident.

Proof of auto insurance is also a requirement in Georgia. All drivers must provide proof of insurance to any law enforcement who requests it. It can also be helpful to know other Georgia laws that may affect your rates. Texting and driving in Georgia is illegal for all drivers and beginner drivers cannot use their phones when driving.

Georgia drivers are required to show proof of financial responsibility. The most common method of doing this is buying an insurance policy. However, there are other ways to show financial responsibility, including:

According to NOLO, Georgia is a fault state which means that whoever is responsible for the accident is also responsible for the damages. That's why you need to have insurance with sufficient coverage. Georgia's minimum requirements may not be enough. One auto accident can lead to thousands of dollars in damages, which a minimum insurance policy may not cover.

You can also expect additional fees, such as ones to reinstate your license or plates. Even worse, if you are in an accident without insurance, you could be personally responsible for all damages. Georgia also uses a database, the Georgia Electronic Insurance Compliance System (GEICS), to verify insurance information. If you are pulled over, even if you have proof of insurance, it must match the information in the system.

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Laws and Regulations of Car Insurance in Colorado

Category: Car Insurance

The tort system is Colorado's system of protecting property and the injured body from injury in an accident. The victim of an accident can hold the responsible party responsible for any costs resulting from it, whether they are property damage or bodily injury. If you're looking for Colorado car insurance, this is something you should keep in

The tort system is Colorado’s system of protecting property and the injured body from injury in an accident. The victim of an accident can hold the responsible party responsible for any costs resulting from it, whether they are property damage or bodily injury. If you’re looking for Colorado car insurance, this is something you should keep in mind. The tort system requires that an individual be held responsible for any accident. The insurance company, as the responsible party in this instance, will be held fully responsible for the damages.

The state has given the numbers 25, 50, and 15 to indicate the minimum insurance requirements. This makes it easier for people to remember. These numbers show that the state has $25,000 minimum coverage for bodily injury liability. 50 is the legal limit on accident coverage, or $50,000. Each accident must have minimum $25,000 coverage for any property damage. All expenses resulting from an accident, including physical injury and damage, will be covered by underinsured or uninsured motorists.

Colorado’s car insurance law requires that all owners and drivers of cars sign the registration to be attached to their vehicle’s back. You must also be able show proof of auto insurance that includes minimum liability coverage. You will be fined if you fail to sign or forget to sign the registration. If you sign the registration without knowing that you do not have minimum liability coverage, it could lead to more severe consequences than simply paying fines. You could be arrested for perjury.

Colorado has made it mandatory for insurance companies to offer uninsured or underinsured coverage. You will be covered under the law if you accept the offer. The cost of coverage is not regulated by the state.

It is possible to find the best car insurance in Colorado. It is important to do your research and find the best deal for you. You should compare quotes from at least 10 different insurance companies. This will allow you to make sure you get the right car insurance policy for you.

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Massachusetts law about auto insurance | Mass.gov

A compilation of laws, regulations, cases, and web sources on motor vehicle insurance law.

211 CMR 74 Standards of fault to be used by the Board of Appeal on Motor Vehicle Liability Policies and Bonds and insurers in presuming fault when making at fault determinations Lists motor vehicle accident "situations in which fault is presumed to be more than 50%."

Commerce Ins. Co., Inc. v. Gentile, 472 Mass. 1012 (2015) When grandparents explicitly listed their grandson as an excluded driver, and then allowed him to drive, or did not prevent him from driving, their car, the insurance company did not have to pay the optional coverage for bodily injury.

Commerce Ins. Co., Inc. v. Szafarowicz, 483 Mass. 247 (2019) An insurer, who had defended under a reservation of rights and contested the judgment, was only bound by a settlement/assignment agreement reached in the underlying case if the agreement was found to be reasonable under the totality of the circumstances.

Golchin v. Liberty Mutual Ins. Co., 466 Mass. 156 (2013) The insured was "entitled to the MedPay benefits provided by her auto policy, [even though] the medical expenses at issue were covered by and paid under a separate policy of health insurance."

IDS Property Casualty Insurance Co. v. Government Employees Insurance Co., Inc. (GEICO). 985 F3d 41, US Court of Appeals, January 13, 2021, No. 20-1407. “An insurance company could rescind an auto policy because the policyholders did not comply with their duty to inform the insurer about the vehicle’s principal place of garaging and its customary drivers before the insurer automatically renewed their policy.”

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Michigan Supreme Court to decide if new car insurance law applies to those injured before summer 2019 | Fox News

Category: Car Insurance Laws

The MI Supreme Court will make a decision regarding catastrophic injury victims from car accidents before summer 2019. A change in car insurance laws can affect insurers and victims.

This material may not be published, broadcast, rewritten, or redistributed. ©2022 FOX News Network, LLC. All rights reserved. Quotes displayed in real-time or delayed by at least 15 minutes. Market data provided by Factset. Powered and implemented by FactSet Digital Solutions. Legal Statement. Mutual Fund and ETF data provided by Refinitiv Lipper.

For decades, people injured in crashes were entitled to payment for "all reasonable charges" related to care and rehabilitation. But the new law set a fee schedule and a cap on reimbursements not covered by Medicare.

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Michigan Supreme Court takes major car insurance case | Business News | wfmz.com

Category: Car Insurance

The Michigan Supreme Court has agreed to decide whether major changes in car insurance law apply to people who were catastrophically injured before summer 2019. The case is being closely

FILE - Health aide Angela Martin helps former Detroit Red Wings star Vladimir Konstantinov into his wheelchair on Tuesday, May 17, 2022, in West Bloomfield, Mich. Konstantinov suffered a severe brain stem injury from an accident in a limousine with an impaired driver after a Stanley Cup celebration nearly 25 years ago. He was in danger of losing his 24/7 care he has had for two-plus decades, but major changes in Michigan car insurance law do not apply to people who were severely injured before summer 2019, the state appeals court said Thursday, Aug. 25, 2022. It is a victory for long-term victims of motor vehicle crashes and their care providers.

FILE - Former Detroit Red Wings star Vladimir Konstantinov plays Uno with health care provider Angela Martin on Tuesday, May 17, 2022, in West Bloomfield, Mich. Konstantinov suffered a severe brain stem injury from an accident in a limousine with an impaired driver after a Stanley Cup celebration nearly 25 years ago. He was in danger of losing his 24/7 care he has had for two-plus decades, but major changes in Michigan car insurance law do not apply to people who were severely injured before summer 2019, the state appeals court said Thursday, Aug. 25, 2022. It is a victory for long-term victims of motor vehicle crashes and their care providers.

The Michigan Supreme Court has agreed to decide whether major changes in car insurance law apply to people who were catastrophically injured before summer 2019. The case is being closely watched by insurers, health-care providers and long-term crash victims. For decades, people injured in crashes were entitled to payment for “all reasonable charges” related to care and rehabilitation. But the new law set a fee schedule and a cap on reimbursements not covered by Medicare. The Michigan appeals court recently said the law couldn't be applied retroactively. It was a victory for roughly 18,000 people who were getting long-term care when the new law kicked in.

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Insurance Requirements for Maryland Vehicles - Pages

An official website of the State of Maryland.

New to MarylandVehicle InsuranceVehicle Titling and RegistrationRegistration Renewal InformationRegistration for MilitaryVehicle Registration and Titling QuestionsVehicle Registration FormsLicense PlatesInteractive Business Licensing ManualVehicle EmissionsAutomated VehiclesBuy, Donate or Sell a VehicleConsumer Tips for Purchasing a New VehicleVehicle Titling AppointmentCurbstoningTitling - Excise Tax Credit for Plug-in Electric Vehicles

Did you know Maryland is a mandatory vehicle insurance state? What does this mean for you? MDOT MVA now validates your vehicle insurance at registration renewal. Customers can update insurance with MDOT MVA anytime on myMVA eServices. Insurance agents may also update insurance information on behalf of their customers using myMVA.

4. If you have moved to Maryland and are continuing vehicle insurance coverage from your previous state of residence, you will need to contact your vehicle insurance company or agent and let them know you need to convert your policy to a Maryland policy. Note: Check to make sure your vehicle insurance company is licensed in Maryland.

The Maryland Automobile Insurance Fund (MAIF) provides automobile insurance to Maryland residents that have been turned down by two insurance companies or cancelled by one. To get more information on how to insure your vehicle, click here to visit MAIF's website.

The Maryland General A-sembly’s Office of Legislative Audits operates a toll-free fraud hotline to receive allegations of fraud and/or abuse of State government resources. Information reported to the hotline in the past has helped to eliminate certain fraudulent activities and protect State resources.

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Official NCDMV: Vehicle Insurance Requirements

To avoid fines and fees, an individual should not cancel their insurance until they have surrendered their license plate to the N.C. Division of Motor Vehicles. Minimum Coverage. …

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Specific RTO Rules and Regulations for Imported Vehicles

The vehicle speedometer must conform to the units of measure used in India. The imported vehicle must have a right-hand drive. The imported vehicle must meet the type approval …

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Why You Should Have Auto Insurance - Tennessee

Category: Car Insurance

A web-based program will verify insurance for all Tennessee drivers. These changes come as part of the James Lee Atwood Jr. Law. The required minimum limits of your liability car insurance …

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Automobile insurance guide - Texas Department of Insurance

May 06, 2021 · Automobile insurance protects you financially by paying the other driver’s car repair and medical bills if you cause an accident. Depending on the kind of coverage you have, …

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