Why Required Car Insurance Coverage Limits Differ By State
Car insurance is a requirement for drivers all across the United States. As required car insurance provides financial protection against injuries, damages and liabilities that arise after traffic collisions, those driving without insurance are in clear violation of the law. No driver should be driving without insurance coverage, and for this reason each state has a minimum level of required car insurance that each driver must have. What is surprising, however, is how much the required state car insurance amount varies from state to state.
One reason that state car insurance minimums vary is that car insurance law is governed mainly by the states, without interference at the federal level. As the state itself determines its own required car insurance levels, this amount can be inexpensive in one state and quite costly in another. While one state might require a high minimum insurance level to cover injuries and property damage, another state might be less concerned with these damages.
States with higher numbers of uninsured drivers will also have higher required car insurance minimums, as insured drivers are forced to cover the cost of these individuals.
Generally, state car insurance minimums are higher when an area is more densely populated. States that are highly populated and have a number of high traffic areas have higher minimum car insurance requirements than rural areas, where there are far less people and traffic is not as much of an issue. The reasoning for this is simple. The more people on the road, the more likely an accident will take place. With a higher chance of accidents, it is important to have more money set aside to cover damages arising from these collisions. In some rural areas, an individual could drive for miles and miles and never even see another driver, while even in the middle of the night, a city dweller might see many cars on the road.
Additionally, rural area crime rates are generally much lower than in cities. This means that a vehicle is far less likely to be stolen in the countryside than it would be in a densely populated urban area. In cities, there are far more cars available, thus presenting many more targets for an automobile thief to choose from. With more people present, there are generally a larger number of criminals, making it more likely for vehicles to be stolen.
State car insurance requirements are important, as many people would be unable to cover the damage, injuries and liabilities arising as a result of their accidents without it. As required car insurance amounts vary from state to state, those looking for lower car insurance costs would be well advised to consider moving to a rural area.
