Carrying auto liability insurance is a basic driving requirement in all U.S. states, except in New Hampshire, where drivers, who have no serious traffic violations, may just file an SR-22 or deposit securities or money with the state treasurer instead of purchasing auto insurance.
Though a requirement, studies conducted by the Insurance Research Council (IRC) show that close to 30 million drivers in the U.S. still remain uninsured. Now, with more than 30,000 fatal car crashes every year and more than two million accidents resulting to injuries, the thought of possibly figuring in an accident wherein the driver at fault is uninsured is nothing less than fearful.
The high cost of insurance premium is the major reason why millions of drivers choose to drive without coverage. Now, if these drivers cannot afford to purchase an auto liability insurance policy, how will they be able to compensate a person who they may injure and whose property they may damage in accidents due to their fault? And to think that being insured was made a mandate to make sure that drivers who would cause accidents have the financial capability to compensate those they may injure.
While many different states find ways to identify uninsured drivers and make sure that they get coverage, these have also required drivers who comply with the car insurance law to add in their policy the Uninsured motorist coverage and the Underinsured motorist coverage.
Uninsured motorist coverage is designed to cover all economic losses and damages suffered by victims of accidents caused by drivers who do not carry auto insurance; this coverage serves as a perfect financial safety net in accidents wherein the vehicle involved was stolen and in hit-and-runs. Underinsured motorist coverage, on the other hand, is designed to supplement any insufficiency in the policy limit of the at-fault driver. This is usually the case when the at-fault driver carries only the minimum liability coverage required by his or her state, making his or her policy not enough to cover the full amount of damages suffered by the victim.
Contrary to what many think, not carrying auto insurance can actually prove to be more costly than having coverage. This is a common belief among insurance providers and independent car insurance companies, according to the website of Pohl & Berk, LLP. Besides the fact that uninsured drivers, who cause accidents, will have to pay out of their own pocket anyone who they may get hurt in an accident, they may also be made to carry an SR-22 filing (for three to five years), pay still higher insurance premium, pay fines, and have their license suspended.
To make sure that they find the best, yet, cheapest, insurance deal with as little effort as possible, the best way is to go online to check the free quotes provided by independent car insurance companies. These quotes definitely make comparing of insurance deals and purchasing of the best and most affordable policy easy, fast and simple.