Mandating minimum

Liability insurance pays the other driver’s medical, vehicle repair and other costs when the policyholder is at fault in an accident.

State laws set the minimum amounts of insurance or other financial security that drivers must pay for the harm caused by their negligence if an accident occurs.

For example, most states require motorists to have valid evidence of insurance in their vehicles at all times and to produce it when stopped by law enforcers.

It requires that drivers demonstrate that they can provide sufficient funds in the event of an “at-fault” accident.Penalties for driving without compulsory insurance include fines, which can be as high as ,000 for a subsequent offense, to license or registration suspension or revocation.Some states can impose jail time, confiscate license plates and impound vehicles.Virginia requires motorists to have insurance or register an uninsured vehicle for a significant fee.Motorcycle insurance is compulsory in every state with the exception Hawaii, Michigan, Montana, New Hampshire, and Washington.