Free instant auto insurance quote or financial responsibility?
What’s the difference between a financial responsibility and having car insurance?
Amy
Not much.
Every state has different laws concerning car insurance, and while some of them might not expressly require car insurance, they pretty much force it for the average Joe. There are two different types of laws that are related to car insurance coverage in states, and those are express car insurance laws and financial responsibility laws.
Now, many states have it to where you absolutely have to have car insurance coverage on your car. In many states, you can drive all you want without anybody knowing it until you get into an accident or get pulled over by a cop, and get caught. In these states, driving without insurance will definitely get you a ticket, and could result in the loss of your license. And even if you don’t lose your license immediately, many states have a points system so that getting a no insurance ticket will contribute points to the future loss of your license.
Other states can tell more easily if someone is lacking car insurance. These states, like New York, have a system that involves the car insurance companies reporting who is insured with them to the department of insurance. If someone is not reported as being insured, a red flag comes up and they are fined. It isn’t reasonable how so many people in these states lack auto insurance considering how easy it is to get a free instant auto insurance quote, but it happens.
As for other states, they have financial responsibility laws. These laws give you one of two options: you can either have car insurance, or you can be able to prove that you have enough resources to cover the costs of a car accident. Most people wouldn’t be able to prove financial responsibility without car insurance, so it is essentially the same as the law in other states for everyone except a select few.
Cheers,
Fashun Guadarrama.
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