Auto Insurance
In the United States,
auto insurance covering liability for injuries and property damage
done to others is compulsory in most states, though enforcement of
the requirement varies from state to state.
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The state of New Hampshire, for example, does not require motorists
to carry liability insurance (the ballpark model), while in Virginia
residents must pay the state a $500 annual fee per vehicle if they
choose not to buy liability insurance Penalties for not purchasing
auto insurance vary by state, but often involve a substantial fine,
license and/or registration suspension or revocation, as well as
possible jail time in some states. Usually, the minimum required by
law is third party insurance to protect third parties against the
financial consequences of loss, damage or injury caused by a
vehicle. Some states, such as North Carolina, require that a driver
hold liability insurance before a license can be issued. Arizona
Department of Transportation Research Project Manager John Semmes
has recommended that car insurers issue license plates, and that
they be held responsible for the full cost of injuries and property
damages caused by their licensees under the Disneyland model.
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Plates would expire at
the end of the insurance coverage period, and licensees would need
to return their plates to their insurance office to receive a refund
on their premiums. Vehicles driving without insurance would thus be
easy to spot because they would not have license plates, or the
plates would be past the marked expiration date.
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