The post discusses why is car insurance mandatory. It also tells why car insurance laws are so strict and why everyone should have such insurance.

Why is car insurance mandatory?

• – It protects both the parties in case of an accident.

• Such insurance can save people from big financial blunders.

• Laws are very strict in the case of car insurance. Severe penalties are levied if a person doesn’t have insurance.

Why Is Car Insurance Mandatory? – Here Is the Outlook

Car insurance is needed in almost every corner of the world. The reason is that it provides complete protection. In cases like accidents, theft, etc. car insurance is of extreme value. If a car user doesn’t want to run after legal cases then car insurance can’t be overlooked.

Car insurance cost for one year is between 600 to 700 dollars. This is like a minimum coverage plan. The rates vary from one state to the other. 

Car Insurance Laws in the US

Almost everywhere in the US, getting car insurance is obligatory by law. Many times the premium amount is very high and vehicle owners think about not buying the insurance. If you are planning to avoid the cost of car insurance then it can lead to legal trouble. Hence it tells why is car insurance mandatory.

The car insurance laws are very strict in the US. Such laws are implemented to ensure safe driving and to counter the high costs involved in car accidents.

Learn By Example

The simple answer to the question of why is car insurance mandatory is that it provides financial protection to the parties.

When a person meets a road accident then two conditions might arise. The first one is damage to the vehicle. And the second one is self-injury. So, the person can claim compensation for the damages, whether it is the car repair or the medical bills.

The party that has caused the carelessness is responsible for covering the expenses with their liability insurance in car insurance.. It protects both parties (the victim and the one who has caused the accident).

Now imagine a scenario where there is no car insurance. Then in such a case, either the person has to pay all the bills on his own or another choice is to run after the one who has caused the accident. Certainly, it is a very big financial burden on the pockets of the parties.

Conclusion – Why Is Car Insurance Mandatory?

Now the answer is very clear as to why is car insurance mandatory. There are very strict penalties and the fines may go up to 5000 dollars. In several cases, even the licenses and registrations are suspended.

A person without car insurance in some states may be arrested for their strict policies. If you don’t have car insurance and are involved in a car accident, the penalties will be very severe against you. Therefore, always make sure to get your car insured before driving it. It is a safety measure and there is no doubt about it. For daily finance news and stories like and subscribe to Financereview.Org.