National Auto Insurance

While auto insurance may be required to some degree in almost every U.S. state, there is no national auto insurance program. Instead, each state has its own insurance companies and individual requirements. These requirements should not be confused with the individual requirements your lender may have if you still have an outstanding loan on your vehicle.

Common national auto insurance requirements generally revolve around the requirement for liability insurance coverage. Liability covers any bodily injury you cause to someone else as a result of your driving as well as property damage. Each state has its own requirements for the minimum coverage you must have to provide a benefit in the event of a single-person injury, a multiple-person injury and property damage in general.

Wisconsin and New Hampshire are the only two states that do not take part in the national auto insurance requirements. But beginning in June of 2010, Wisconsin will require its residents to carry some liability coverage.

Other types of auto insurance that are sometimes required by states include:

-Personal Injury Protection (PIP): PIP covers any injuries you experience in the event of a car accident no matter who was at fault in the accident.

-Uninsured or underinsured motorist coverage: If you are in an accident with someone who does not have insurance or has too little insurance coverage and they were at-fault, then uninsured motorist coverage and underinsured motorist coverage will supplement the damages and injuries you experience.

The number of states that require personal injury protection and uninsured (or underinsured) motorist coverage are very limited. While comprehensive coverage and collision are extremely important to have, there is no national auto insurance requirement to have them in your policy.