State auto insurance laws require drivers to carry a certain amount of auto insurance to drive legally. The laws vary from one state to the next, so you need to be aware of what your state requires. Most insurance companies won’t sell you less than the state minimum amount of insurance because they aren’t allowed, but people still need to be informed about the auto insurance they’re purchasing before they pay money for something they know nothing about.
There are twelve states that are known as “no-fault” states. This means that they don’t cite people for accidents, and everyone pays their own damages and expenses related to an accident. Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota, and Utah are the states that have “no-fault” systems in place. This alleviates lawsuits, confusion, and other unsightly elements involved in auto accidents that become issues in states where people are cited for fault.
All states sell insurance based on a Managed Competition System. This allows the companies to set the rates they want to set, but only as monitored by the state. State auto insurance laws usually require that there be limits on how much an insurance company can charge a person for auto insurance premiums. However, if you have a really bad driving record or an expensive car, you should expect to pay a lot for insurance. Usually, with a good driving record and low-risk car, the average adult can expect to pay between $50 and $100 a month for full coverage. Add more cars and drivers and the rate will increase. However, someone with a bad driving record could pay upwards of $200 a month for auto insurance, just because they pose a greater risk to the insurance company.
State auto insurance laws are pretty laid back and may not provide all of the financial coverage that you truly need. Therefore, it’s important that you shop around and compare rates to ensure you’re getting an affordable policy that will also ensure that you’re covered under any circumstances.