Almost every state in the country has rules that tell you that you must have car insurance if you want to drive. Have you ever wondered why states have these rules and what the penalties are for breaking them? If so, read on to learn more about these rules, why they are in place, and the consequences you face for driving without insurance.

The Reasons States Have Laws in Place for Auto Insurance Minimum Requirements

States have the right to develop their own laws, and most states feel that requiring car insurance is an important law to have. Car accidents occur so frequently, and any time you drive on the roads, you take the risk that you could get in an accident. Auto insurance is what protects people financially from the devastating effects of car accidents, and this is the main reason it is required. The laws are there to protect you, other drivers, and anyone who is driving or riding in a car.

The Differences With State Requirements

While most states have some type of rules about car insurance, the rules vary. If you want to know the rules in your state, you can look them up. Most states require bodily injury coverage, which covers drivers who cause accidents, and most require liability coverage, which covers victims in other cars. Some states also require other types of coverage, such as uninsured and underinsured motorist coverage.

States that do not have car insurance requirements do have other requirements in place. For example, a state without rules on minimum coverage might state that you do not need car insurance as long as you are financially able to pay for potential damages out of your own pocket.

The Consequences of Driving Without It

When it comes to the consequences for driving without insurance, each state also has its own rules. Some states place points on a person's driver's license for this violation. Other states charge fines or require special auto insurance coverage. There are also states that could revoke a person's driving privilege for being caught without insurance. It varies, but it is important to understand that this is a serious offense that you can easily avoid by purchasing car insurance.

If you currently do not have enough coverage or any at all, you should talk to an insurance agent to find out what types and amounts of coverage you should buy and how much it would cost.