In the U.S., carrying auto liability insurance is a mandate; thus, whether you drive a car, a truck or a motorcycle, and no matter what your driving history is, whether it is marred by multiple driving violations and driving accidents, you will have to be insured.
Carrying auto liability insurance is the most common way drivers comply with the Financial Responsibility law, the law which requires drivers to prove that they are able to pay for damages resulting from accidents due to their fault. Other than having insurance coverage, compliance with said law includes any state-approved way of demonstrating financial capacity to pay, like: depositing securities or money with the state treasurer or filing an SR-22, which is the case in the state of New Hampshire; or paying the state’s Department of Motor Vehicles (DMV) the required uninsured motor vehicle fee, as in the case in the state of Virginia.
Where drivers decide to carry auto insurance, the type of coverage they need to carry depends on the liability system recognized in the state where they reside. Presently, 38 states, also known as “tort” or “fault” states, require the tort liability coverage; the remaining 12 states, also known as “no-fault” states, these are Utah, New York, North Dakota, Massachusetts, Michigan, Minnesota, Kansas, Hawaii, Florida, Pennsylvania, New Jersey and Kentucky, require the “no-fault” insurance coverage (drivers in Pennsylvania, New Jersey and Kentucky are actually allowed to choose which coverage they want to carry).
Drivers, especially those who cause accidents, can lose their driving privileges and be required to carry an SR-22 filing if they are found without insurance coverage. An SR-22 is a certification required by the state’s Department of Motor Vehicles (DMV). This certification is issued by a car insurance provider; it informs the state DMV that the driver who has been required to file an SR-22 has already purchased an insurance policy.
While an insurance policy can already put a strain on a driver’s budget, an SR-22 is an additional financial burden. Besides the SR-22 fee, it will also make insurance premiums more expensive and, sad to say, this will last for three years and may even be extended by a judge to five years.
Drivers, however, are provided ways to finding an insurance and SR-22 deal that is within their budget, thanks to independent insurance companies, according to the website of Pohl & Berk, LLP, these insurance companies offer various insurance quotes that would allow drivers to compare and choose the best policy that will fit their needs.