No matter what your driving history is, whether it is marred by multiple driving violations and driving accidents, you will still have to carry auto liability insurance which will definitely cost much more expensive (due to these violations). Why do you need to carry insurance coverage? The simplest reason is because is it the law!
Financial responsibility law is mandated in all US states. Compliance to this law can either be through having car liability insurance coverage or by posting a bond to show proof of financial capability in case of an at-fault accident (the latter, which is allowed in the states of New Hampshire and Virginia, is an alternative option for drivers who choose to register an uninsured vehicle. Mandatory car insurance coverage actually serves as the best viable solution for drivers who cannot afford to compensate their victims in at-fault accidents.
Depending on which state a driver resides, the type of car liability insurance coverage he or she can carry is either the full tort coverage or the no-fault coverage (also known as personal injury protection or PIP. In full tort coverage, the liable driver’s insurance provider (once liability is determined through a lawsuit filed by the one who claims to be a victim in the accident) is responsible in compensating the victim for the damages he or she is made to suffer. Due to the lawsuit, payment of compensation is often delayed; the insurance premium to be paid by the policy owner will also include court and other legal fees, making premiums quite expensive.
No-fault coverage, on the other hand, does not necessitate any lawsuit since compensation is to be paid by the respective insurance providers of those involved in the accident. There are currently nine states where the no-fault or PIP coverage is mandated: Utah, New York, North Dakota, Massachusetts, Michigan, Minnesota, Kansas, Hawaii and Florida. In the states of Pennsylvania, New Jersey and Kentucky, drivers have the option to carry either the no-fault or the tort coverage.
Drivers who are caught without insurance coverage can lose their driving privileges and their license, suspended. To have these restored, they will need to carry an SR-22 filing, a certification required by their respective state’s Department of Motor Vehicles (DMV) proving that they already have coverage.
While an insurance policy can already put a strain on drivers’ budget, SR-22 can only worsen their financial situation. Ending up paying costly premiums do not have to so, however, according to Madison, Wisconsin car accident attorneys, which says that drivers can always seek help from independent insurance companies to assist them finding the insurance deal that will best fit their budget, needs and situation.