Do all countries require car insurance?

Auto insurance policies are present in just about every country in the world. It isn’t exactly a luxury to get one, but rather a necessity, and even an obligation under the law in several countries.

Why does the government make some insurance mandatory?

Compulsory insurance is any type of insurance an individual or business is legally required to buy. Compulsory insurance is supposed to protect accident victims against the costs of recovering from an accident that someone else, such as another driver or an employer, has caused.

Which is the only insurance required by law?

The law says that you must have auto liability insurance. However, if you have a low income, it can be hard to pay the premium. California has a program to help you.

Which insurance is compulsory for drivers and what does it cover?

Third party insurance is the bare minimum you need to drive legally on public roads. It has been compulsory since it was introduced with the Road Traffic Act 1930. However, third party only covers the other party’s damage and injuries if you’re involved in an accident where you’re at fault.

Where in the World Is car insurance not required?

There are only two states where car insurance is not mandatory for all drivers: Virginia and New Hampshire. In Virginia, an uninsured motor vehicle fee may be paid to the state, while in New Hampshire, vehicle owners have the option to post cash bonds.

Is car insurance mandatory in Europe?

European Union countries require that a driver have third-party liability insurance prior to registering a car. This insurance covers the other party’s property damage and injuries due to an at-fault accident in any EU country.

Why is it important to have car insurance even if you’re a really good driver?

Auto Insurance Helps You Protect Yourself Uninsured motorist coverage may help pay for your medical bills if you’re hit by a driver without insurance. This coverage is required in some states and optional in others. Having the proper car insurance coverage in place can go beyond fulfilling a legal requirement.

Does a car have to be insured or the driver?

Contrary to popular belief, car insurance typically follows the car — not the driver. If you let someone else drive your car and they get in an accident, your insurance company would likely be responsible for paying the claim, depending on the coverages in your policy.

Is it illegal not to have car insurance?

Yes, federal law requires all drivers to have car insurance so the interests of pedestrians and other motorists are protected in a crash. Most states have laws that mandate car insurance as well, with each state establishing its own required coverage amounts and penalties for failure to have insurance.