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rental car damage and liability insurance

Most of us heard about we need a car insurance, probably, you bought your car and now you need a car insurance. You might watch any insurance commercial on TV, Facebook, Instagram, YouTube, or in any website you surf. But now, you are asking why car insurance is mandatory in the US?

The main reason why all states requires drivers have a car insurance is because your liability.

Why do I need a Car insurance?

The main reason why all states requires drivers have a car insurance is because your liability. For example: responsibility, for any damage or loss caused by driving. Also, that car insurance may have optional collision coverage, providing financial help for the victims of damages that you cause in any accident. A clear reference could be in most of the states the laws requires the drivers have a car insurance in order to cover any bodily injury, or property damage.

Why most of the states requires you get a car insurance?

Beyond the legal requirements of your state, if you lease or buy a car, the lender, in most of the cases, you will notice that 48 states requires drivers get a car insurance. The only state which don't require a car insurance is New Hampshire, but they request you some minimum requirements for those who don't have any car insurance, it is required by law to show you have financial responsibility, just in case you injure someone or destroy other's belongs in a car accident.

How mandatory is to get a car insurance?

This is a question which can't get an easy answer. Each state have different laws related to the car insurance, for example, a driver in California requires from $5.000 for property damage by a car accident up to $30.000 for body injury liability, but that amount is even higher in Maine, as well as a medical payment coverage and an uninsured or an under insured motorist coverage.

Does Lenders require you more car insurance coverage?

Lenders or these companies who lend vehicles to any customers often to request you get a car insurance on a car you are leasing from them, this way they protect their company financial interest in the auto they have lend. Due the agreements between your bank or dealer in a lender company, I recommend you read carefully the leasing agreement, most of their agreements do not match yours.

That is because they want a fully cover insurance to their lent vehicle just in case of a total loss.


The best for any person who need to get a car insurance is learn about your state’s specific car insurance liability requirements ordered by each state laws me be a good chance for you to get the best offer for your car insurance, which will be beneficial for your budget. You can always verify which is the right insurance for you. Also, you can always look for many insurance agencies such as Freeway Insurance, they really work hard locating the best insurance quotes and coverage for your vehicle needs.

If you have any additional questions about this topic, please, send me a message below, I will be most grateful to help you.

You may be also interested in these articles:

Top 5 most common car insurance claims in the US

Driving without insurance in California

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