What Type Of Auto Insurance Is Required By Law

Suspension For Failure To Pay For Damages For Which You Are Liable

Statutory references: Sections 303.030 and 303.042, RSMo.

If you are at fault for the accident and do not pay for the damages, your driver license and/or license plates will be suspended for one year. Your driver license and/or license plates can be reinstated within the one-year period provided you pay a $20 reinstatement fee and send proof to the Driver License Bureau that you have settled the accident loss.

Mail to:

If a hearing request is received before the suspension begins, the suspension will be placed on hold until a final order is issued following a hearing. Mail your request to:

Still need help? You can also submit your driver licensing questions to our staff by email. Your email will be forwarded to the appropriate area for reply. Some inquiries can be responded to more quickly than others depending on the issue and amount of time needed for research. Please make sure your computer will accept our email response.

You May Also Need These Other Types Of Insurances In Some States

Although bodily injury liability coverage and property damage liability coverage are required in a majority of U.S. states, there are some additional types of auto insurance your state may require. Some, but not all, states mandate you have:

• Personal injury protection : This type of insurance pays your own bills and lost wages up to a certain amount . States that require PIP are usually “no-fault” states. That means that, regardless of who is at fault in an accident, each person turns to their own PIP coverage to pay for minor damages. The driver who caused the crash isn’t liable for covering the injuries of others unless they are serious ones.
• Uninsured/underinsured motorist coverage: Some states mandate you get this protection. It pays for your losses and damages if a driver with too little insurance harms you or damages your property in an accident they were at fault for.

You have to buy the minimum coverage your state requires, so make sure to determine if your state mandates these extra protections. And, in some cases, you may also want to buy coverage that isn’t required in order to protect yourself and your assets. For example, collision and comprehensive insurance can pay for your property damage after a crash you cause or if other problems occur, such as hail damage or theft.

Is Auto Insurance Required

Texas law requires drivers to show proof they can pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other drivers car, or other damaged property, and pays other peoples medical expenses when youre at fault in an accident.

If you still owe money on your car, your lender will require you to have collision and comprehensive coverage.

Recommended Reading: How To File For Bankruptcy And Keep Your Car

What Are The Car Insurance Requirements In Texas

Texas law requires all drivers to have adequate car insurance. According to state law, Texas drivers need to have minimum insurance coverages of $30,000 per injured person, up to at least $60,000 per accident. Additionally, Texas drivers must have coverage for property damage of at least $25,000. Insurance and legal professionals refer to these coverage requirements in shorthand 30/60/25 coverage.

These requirements, however, are simply minimums, and theres no guarantee that minimum coverage will address all the costs of recovery and repairs if youre injured in an accident.

Although Texas doesnt require drivers to have insurance against uninsured and underinsured drivers, its a good idea to consider including it in your policy. This type of insurance protects you if youre injured in an accident caused by a driver who didnt have insurance, or who didnt have enough coverage to take care of the damages.

Am I Covered If Im Driving Someone Elses Car

Rental cars. Rental agencies offer damage waivers and liability policies. The damage waiver isnt insurance. Its an agreement that the rental agency wont charge you for damage to a car you rent.

You probably dont need the rental agencys liability policy. Your own auto policy will usually cover you while youre driving a rental car for personal use. It probably wont cover you if youre driving the rental car for work, however.

Before you rent a car, ask your agent whether you need the rental agencys liability policy and damage waiver.

Learn more: Do I need to buy insurance when I rent a car?

Borrowed cars. If you cause an accident while driving a borrowed car, the car owners insurance pays claims. If the owner doesnt have insurance, or doesnt have enough to pay for the damages and injuries you caused, your insurance will pay.

If you dont own a car, but borrow a car often, you can buy a nonowner liability policy that pays for damages and injuries you cause to other people while driving a borrowed car. It doesnt pay for your injuries or damage to the car youre driving.

If you borrow a car from a repair shop, your liability insurance will pay for damages to the car. It will also pay for other peoples injuries and damages if you’re at fault in an accident. Check your liability limits to make sure they’re enough to pay for the damages.

Don’t Miss: Pay Pnc Auto Loan Online

What If I Cant Find A Company That Will Sell Me A Policy

If you cant find a company willing to sell you a policy, you can get basic coverage through the Texas Automobile Insurance Plan Association . You can get TAIPA coverage if two insurance companies have turned you down.

TAIPA sells liability, personal injury protection, and uninsured/underinsured motorist coverages. It doesnt sell collision or comprehensive coverage or higher liability limits than state law requires.

TAIPA coverage is more expensive than coverage from other insurance companies. TAIPA also charges more if youve had tickets or accidents than other companies.

If you have TAIPA coverage and havent had any tickets or accidents for a year, your rates might go down. If you dont have any tickets or accidents for three years, your insurance company must offer you a cheaper policy outside of TAIPA.

To get TAIPA coverage, talk to your agent.

What Factors Influence Business Insurance Rates

Key factors that impact how much youll pay for small business insurance include:

• Your profession. The risk of filing a claim isnt the same for all businesses. Business owners in high-risk fields generally pay more for insurance than those in low-risk professions. For example, an accounting firm may have a lower rate than a contracting business.
• Number of employees. The more employees you have, the greater the cost of workers compensation insurance.
• Insurance coverage needs. The coverage limits you choose will influence the cost of your insurance.
• Prior claims history. An insurer will consider your prior business insurance claims history.

Other factors taken into consideration by small business insurers are the type of business assets, the business property owned, your location and the size of the payroll.

Business Loan Offers

Recommended Reading: Auto Insurance Companies In Virginia

What You Need To Know:

• Auto insurance is required by Minnesota law. If you have a car loan, your lender may also require additional coverage such as collision and comprehensive coverage.

• Policies will vary beyond what is required by law and every policy will have limitations on what it covers and to what extent.

• Your policy can be cancelled if you don’t pay your premium, misrepresent or fail to disclose certain information.

Working With An Agent Or A Broker

In California, you can buy insurance from an agent, a broker, or an insurance company. You can get insurance quotes online, over the telephone, or by mail.

• All agents and brokers must be licensed by the state to sell insurance.
• When an agent or broker sells a policy, they get a commission from the insurance company.
• Brokers charge an extra fee, called a broker’s fee. Ask what the fee is before you sign anything. Brokers’ fees are not set by law, so you can discuss the fee and ask for a lower fee.
• Make sure to keep the receipts for your premium payments, especially if you are paying in cash.

You May Like: Firestone Complete Auto Care Pflugerville

Medical Payments Or Personal Injury Protection Insurance

If you or a passenger in your vehicle are hurt in an accident, medical payments or personal injury protection coverage can help pay any resulting medical bills. This type of coverage can also cover lost wages if you or an injured passenger are unable to work or funeral expenses if someone in your vehicle dies because of an accident.

Uninsured Motorist Coverage /underinsured Motorist Coverage

This covers you if you are in an accident with a driver who does not have any liability insurance, or is underinsured.

The insurance company must offer you this coverage. If you choose not to buy it, you must sign a form, called a waiver. The form says you were offered the coverage and turned it down.

• Uninsured motorist bodily injury : This pays for injuries to you and any person in your car when there is an accident with an uninsured driver who is at fault. The limits are the same as your liability coverage limits.
• Underinsured motorist :This covers limited costs for bodily injury if you are in an accident with a driver who does not have enough insurance to pay for damage
• Uninsured motorist property damage : This pays for the damage to your car from an accident with an uninsured driver who is at fault. The limit is $3,500. This only pays if the uninsured driver is identified. You may not need it if you have collision coverage.

Recommended Reading: Cheap Car Rentals Mco Airport

Filling Out An Application

You will have to provide some information when you apply for auto insurance. The insurance company uses the information to decide if they will insure you and for how much.

• How you use your car, such as for business, commuting to work, or family trips
• How many miles you drive in a year
• The years, makes, models, and vehicle identification numbers for all cars in the household
• The amount you paid for the car
• The insurance requirements if you have a loan or lease
• How long you have been driving
• The names, ages, marriage status, and driver’s license numbers for all drivers in your household
• The driving record for all drivers in your household including accidents, insurance claims, and tickets for moving violations, but not parking tickets
• Most insurance companies will order a Motor Vehicle Report from the DMVthis is the state’s official record of your accidents, traffic violations, and suspended licenses

Filing An Accident Report

You must report accidents that happen in Missouri to the Driver License Bureau if:

• The accident happened less than one year ago,
• The accident involved an uninsured motorist, and
• The accident caused property damage costing more than $500, or someone was injured or killed.

NOTE: If the accident did not cause $500 in property damage or personal injury or death, you may still file an accident report if there was an uninsured motorist involved. The bureau will only be able to take action under Section 303.041, RSMo .

You can get a Motor Vehicle Accident Report form from:

Statutory reference: Section 303.041, RSMo.

If the Director of Revenue determines that the operator or owner of a motor vehicle involved in an accident has not maintained liability insurance, the operator or owner, or both, will be mailed a Notice of Suspension. The notice will include the reason for suspension, effective date of suspension, and the procedure to request a hearing.

Recommended Reading: How To Auto Send Messages

Some Types Of Car Insurance Are Mandatory Others Are Optional

Some kinds of car insurance are required by state law, while other types of insurance are optional. Buying more insurance coverage provides greater protection to drivers who are willing pay higher premiums. To make a good decision about which car insurance policy you should buy, you should have a general understanding about the various kinds of available coverage.

Talk To The Department Of Insurance

We are the state agency that regulates the insurance industry. We also work to protect the rights of insurance consumers.

Contact the California Department of Insurance :

• If you feel that an insurance agent, broker, or company has treated you unfairly.
• If you have questions or concerns about insurance.
• If you want to order CDI brochures.
• If you want to file a request for assistance against your agent, broker, or insurance company.
• If you are having difficulty opening a claim with your insurance company.
• To check the license of an agent, broker, or insurance company.

You May Like: Auto Loan Companies For Poor Credit

Rd Or Subsequent Suspension

• Proof of liability insurance. The most commonly used proof of insurance is an SR-22 filing. It must be kept for three years from the date you are eligible to reinstate.
• $400 reinstatement fee. Money order or personal check is acceptable. Please include your full name, date of birth, and driver license number.

Insurance Information And Enforcement System

Be aware of the importance of maintaining required motor vehicle insurance coverage on a continuous basis as long as you own a car. The New York Department of Motor Vehicles has a system, called the Insurance Information and Enforcement System , that detects uninsured vehicles.

Insurers are required to report to the DMV information, such as cancellations, renewals, and issuance of new policies, on all persons they insure for motor vehicle insurance. This information is entered into an electronic database that will continuously track insurance coverage for each registered vehicle. Failure to maintain liability insurance coverage for your car at all times can result in the suspension of your vehicle registration and drivers license, as well as other substantial monetary penalties.

These procedures could result in you getting a letter from the DMV inquiring about your insurance status even if your vehicle is currently insured. Dont delay in handling any correspondence of this nature you receive from the DMV, even if you are confident that your insurance is in effect. Contact your insurance agent, broker or company for assistance in responding to these letters, or contact the DMV directly for information on how to handle such correspondence.

Don’t Miss: Value Of My Used Car

States Where Professional Liability Insurance Is Required

• Idaho and Oregon require lawyers to have professional liability insurance.
• Seven states require doctors to have professional liability insurance: Colorado, Connecticut, Kansas, Massachusetts, New Jersey, Rhode Island and Wisconsin.
• Nebraska, New Mexico, North Dakota, Rhode Island and Texas are among the states that require professional liability insurance for realtors.

How Is Your Premium Calculated

An incident-free driving history will always result in a lower premium.

Insurance companies group you with other people who share your general risk characteristics – such as the number of years driving experience. To calculate your individual premium , the company uses a base rate for your group, then adjusts it to reflect your individual risk factors and any discounts for which you are eligible. In figuring out your actual premium, insurance companies may consider factors such as your years of driving experience, the number and type of your accidents, the number and type of your traffic violations, and the vehicle you drive. Insurance companies may also consider other risk factors if those factors are relevant to risk and approved by the Commissioner.

Prohibited Underwriting and Rating Factors:

Insurance companies are prohibited from using certain factors for either underwriting or rating in Massachusetts. Underwriting is the way a company decides it wants to write you a policy . Rating is how a company figures out your actual premium. A rate for each group will be set based on the claims paid by the insurer for the people in that group. The higher the average losses from a group, the higher the rates for that group.

You May Like: Insurance Companies For Home And Auto

Understanding Your Required Coverages

Liability insurance: Every state except New Hampshire requires at least a minimum amount of liability insurance. This coverage helps pay for any damage you cause to another driver, their passengers or any property, such as their car.

There are three components to car insurance liability coverage:

• Bodily injury coverage per person

• Bodily injury coverage per accident

• Property damage coverage per accident

These limits are usually expressed as a series of numbers, such as 15/30/10. Let’s say you collide with a van carrying several passengers. With those hypothetical limits, your liability coverage would pay up to $15,000 per person for bodily injuries caused to people in the van but no more than $30,000 in total bodily injury costs for the incident. You’d also be covered for up to $10,000 in property damage.

Most experts recommend carrying more than the minimum liability insurance coverage. If you were at fault in a bad accident, you could easily be on the hook for more than $30,000 in medical bills alone, not to mention potential damages in a lawsuit. Insurance agents typically recommend liability coverage of 100/300/50 for a “full coverage” policy. It’s also worth considering an umbrella policy for more protection if you have a high net worth and a lot of assets.

» MORE:Bodily injury liability coverage: What it is and how it works

Car Insurance Laws By State

Created by FindLaw’s team of legal writers and editors| Last updated September 27, 2019

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.

Most insurance policies express the minimum amounts like this: 25/50/25 , with the numbers corresponding to the individuals:

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.

Don’t Miss: Wells Fargo Car Payment Phone Number