Five Least Understood Auto Insurance Laws

Auto insurance laws are often misunderstood for any of several reasons: they must be actively researched, they vary by state on topics such as minimum car insurance requirements and they can easily be misinterpreted. This guide will help you clear up some questions you may be asking about car insurance laws by tackling 5 common misconceptions.

Usually, states have a minimum insurance requirement of liability insurance, meaning bodily injury and property damage liability coverage. However, this minimum insurance law often causes confusion due to the fact that requirements vary by state.

Uninsured motorist insurance will protect you financially if you are involved in an accident with someone who does not have insurance. In some states, this insurance is also required.

Some states, like Ohio, actually allow the minimum car insurance requirements to be waived entirely if financial responsibility can be proven. This is not common, but it may be worthwhile for you to check into if your state allows this.

Although your insurance premiums will be raised if you put yourself in a higher-risk category by being involved in accidents or receiving multiple tickets, a ticket doesn't always mean an automatic rise in cost. Some low-severity tickets may be overlooked, unless you rack up a lot of them.

A higher insurance rate isn't always tied to being an unsafe driver. Even if you've never been involved in an accident or received a ticket, you might be charged higher insurance rates if you drive more than a certain number of miles per year, if your car is an older model or any number of other factors.

Most auto insurance law confusion stems from these laws differing depending on the state you live in. However, with a little research specifically tailored to your state, it's easy to clear up your misunderstandings about auto insurance laws.