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Factors that Make Car Liability Insurance More Expensive

One in every eight drivers in the US, according to the Insurance Research Council, is uninsured despite the mandate in all states that drivers should carry car liability insurance or show proof of financial responsibility. Car liability insurance is a necessary document whenever drivers renew their license and car registration, when they are at fault in an accident, or whenever a traffic enforcer asks for it. But if thousands of drivers are really uninsured, how, then, are they able to register their car?

The only states that do not require, and strictly require, drivers to carry car liability insurance are New Hampshire and Virginia, respectively. In New Hampshire, it is enough for drivers to post a bond as proof of capability to pay compensatory damages in case of an at-fault accident. In the state of Virginia, drivers can choose to either have insurance or pay the state a significant fee if they choose to have their car registered as uninsured. In all other states, however, what drivers do is purchase an insurance policy but discontinue it as soon as they are able to renew their license and car registration.

While the most common reason given by drivers for violating the mandate instead of complying with it is the high cost of insurance premiums, the legal experts at Habush Habush & Rottier S.C. ®, say that driving uninsured invites more financial risks. If caught, an uninsured driver can face costly fines or imprisonment. He/She may also lose his/her driving privileges and be required to pay a fee and still higher premiums in order to have these privileges reinstated.

Some government authorities may see uninsured drivers as mere violators of the law, but, looking at the other side of the coin, these drivers may actually have a valid argument with regard to the high cost of premiums. Well, it cannot be denied that many insurance providers do have ways of making premiums more costly, specifically by identifying drivers as high-risk based simply on their age, driving experience, type of car driven, and driving history. If one drives a high-powered sports car, for example, this will make him/her more prone to accident than someone driving a regular passenger vehicle. Someone with past traffic violations would also be considered as a high-risk driver due to his/her proneness to getting involved in accidents.

Despite the high cost of premiums, drivers still ought to follow the law by carrying car liability insurance; however, carrying insurance does not necessarily mean paying for an expensive policy. Looking for the best insurance deal, one that costs more agreeable to a driver’s budget, regardless of his/her driving experience, driving history, etc., is the expertise of independent car insurance firms. Going to one for help could really be a big help to drivers, especially those who need to have insurance immediately.