All states in the United States have laws in place that make getting car insurance a requirement. The majority of people do believe that it is a good idea to get cheap car insurance, but many wonder why the government would make it mandatory. The truth is, anyone driving without insurance is not only a risk to themselves but a risk to other motorists as well. Any accident that occurs without insurance could leave either party in the hospital with no insurance to cover the bills. Many hospitals won’t even accept uninsured individuals.

Car Insurance Federal Regulations

These regulations are put in place by the governments of each state, and the states are required by the federal government to uphold those laws. You only need to comply with the minimum requirements of your state, but it’s not always recommended that you only get the basic coverage. Sometimes the bare minimum required by the state won’t cover every eventuality that may occur on the road. You might be asking why the government would put regulations in place that don’t provide decent coverage, and the answer is actually very simple.

Legislative Process

The process involved in passing any new law or mandate is long and tedious. Sometimes it can take years before a bill has even passed the review and discussion process, which is a huge setback when it involves time sensitive material. By the time the new car insurance federal regulations are finally passed and enforced, they’re describing coverage that would have been adequate three years ago, but that certainly isn’t acceptable by today’s standards. That’s why the bare minimum stated by the law isn’t the best coverage you can get.

Requirement Examples

Car insurance federal regulations are stated as as series of three numbers. Currently, Wyoming has requirements of 25/50/20. What do those numbers mean? The first (25) and second (50) number are a reference to the liability limits for bodily injury, and the last number (20) is the liability limit for property damage. The numbers representing bodily damage mean that a single person in an accident can receive no more than $25,000 and only $50,000 can be given out for the accident.

In-depth Explanation

If two people are in the accident, according to the minimum car insurance federal regulations they can each receive $25,000 for a total of $50,000.  If there are three people involved and all three need the full amount of $25,000 per person, then the two people who file fastest are covered. The person responsible for the accident can be sued for the remainder. The third number states that only $20,000 will be provided to cover any property damage that occurred during the accident. Additionally, there may be penalties in your state on those who don’t have insurance, so check with your local department if you want to find out what they are.

There are many situations where this coverage simply isn’t enough. The car insurance federal regulations should only be used if there is absolutely no way you can afford better coverage. The good news is it’s easy to find a comparison of quotes online to get the best rates available. Just enter your zip code for a full list of rates in your area.

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