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AUTOMOBILE FINANCIAL
RESPONSIBILITY LAWS
Most states require car owners to buy a minimum amount of bodily
injury and property damage liability insurance before they can legally
drive their cars. All states have financial responsibility laws. This
means that people involved in an automobile accident will be required to
furnish proof of financial responsibility up to certain minimum dollar
limits. To comply with financial responsibility laws, most drivers
purchase automobile liability insurance. The insurance industry and
consumer groups generally recommend a minimum of $100,000 of bodily
injury protection per person and $300,000 per accident since accidents
may cost far more than the minimum limits mandated by most states.
AUTOMOBILE FINANCIAL RESPONSIBILITY LIMITS AND
ENFORCEMENT BY STATE
|
Proof of insurance required (1) |
State |
Insurance required (2) |
Minimum liability limits (3) |
At registration |
At time of accident |
At all times in vehicle |
Insurer verification of insurance (4) |
Penalties for non-compliance (first
offense) |
| AL |
BI & PD Liab |
20/40/10 |
Yes |
Yes |
Yes |
None |
$500 fine,
license suspension |
| AK |
BI & PD Liab |
50/100/25 |
No |
No (5) |
Yes |
b |
Registration
suspension/revocation (6) |
| AZ |
BI & PD Liab |
15/30/10 |
No (7) |
Yes |
Yes |
a,b,d |
$250 fine |
| AR |
BI & PD Liab |
25/50/25 |
Yes |
No |
No |
d |
$50-$250 fine |
| CA |
BI & PD Liab |
15/30/5 (8) |
Yes |
Yes |
Yes |
b |
$100-$200
fine |
| CO |
BI & PD Liab |
25/50/15 |
Yes |
Yes |
Yes |
a,d |
License suspension, $500
fine |
| CT |
BI & PD Liab, UM, UIM |
20/40/10 |
Yes |
Yes |
Yes |
a,d |
Registration/license suspension/revocation, confiscation of
plates, vehicle impoundment, $110-$250 fine |
| DE |
BI & PD Liab, PIP |
15/30/10 |
No |
Yes |
Yes |
a,c |
$1,500-$2,000 fine;
six-month license suspension |
| DC |
BI & PD Liab, UM |
25/50/10 |
Yes |
No |
No |
a,c |
$300-$500
fine or maximum 30 days jail |
| FL |
PD Liab, PIP |
10/20/10 (9) |
Yes |
Yes |
Yes |
a,d |
60-day license revocation,
vehicle impoundment for subsequent offense and confiscation of
plates in Dade, Broward and Hillsborough counties (6) |
| GA |
BI & PD Liab |
25/50/25 |
Yes |
Yes |
Yes |
a |
60-day
license suspension, registration suspension |
| HI |
BI & PD Liab, PIP |
20/40/10 |
No |
Yes |
Yes |
None |
$1,000 fine |
| ID |
BI & PD Liab |
25/50/15 |
No |
Yes |
Yes |
a,c |
$75 fine |
| IL |
BI & PD Liab, UM |
20/40/15 |
Yes |
Yes |
Yes |
a,c |
$500 fine, 60-day
registration suspension (6) |
| IN |
BI & PD Liab |
25/50/10 |
Yes |
Yes |
No |
a,b |
1-year license and/or registration suspension, $150
reinstatement fee |
| IA |
BI & PD Liab |
20/40/15 |
No |
Yes |
Yes |
a |
$100 fine |
| KS |
BI & PD Liab, PIP, UM |
25/50/10 |
Yes |
No |
No |
d |
$300-$1,000 fine, maximum 6 months jail |
| KY |
BI & PD Liab, PIP |
25/50/10 |
Yes |
Yes |
Yes |
d |
$500-$1,000 fine and/or up
to 90 days in jail |
| LA |
BI & PD Liab |
10/20/10 |
Yes |
No (e) |
Yes |
a,d |
$25 fine,
up to $500 fine, confiscation of plates (6), vehicle impoundment |
| ME |
BI & PD Liab, UM,
UIM |
50/100/25 (10) |
No |
Yes |
Yes |
a |
$100-$500 fine, 30-day
license and registration suspension |
| MD |
BI & PD Liab, PIP (11), UM |
20/40/15 |
Yes |
No |
No |
a,c |
up to
$1,000 fine and/or 1-year jail |
| MA |
BI & PD Liab,
PIP, UM |
20/40/5 |
Yes |
No |
No |
a |
$500 fine (6) |
| MI |
BI & PD Liab, PIP |
20/40/10 |
Yes |
No |
No |
a |
$200 fine
(6) |
| MN |
BI & PD Liab,
PIP, UM, UIM |
30/60/10 |
No |
Yes |
Yes |
c |
License and/or registration
revocation for 6 months (6) |
| MS |
BI & PD Liab |
25/50/25 |
No |
Yes |
Yes |
a |
$500 fine,
license and registration suspension |
| MO |
BI & PD Liab, UM |
25/50/10 |
Yes |
Yes |
Yes |
a,c |
License and registration
revocation (6) |
| MT |
BI & PD Liab |
25/50/10 |
No |
Yes |
Yes |
a |
$250-$500
fine or not more than 10 days in jail |
| NE |
BI & PD Liab |
25/50/25 |
Yes |
Yes |
Yes |
a,d |
$500 fine (6), license and
registration suspension |
| NV |
BI & PD Liab |
15/30/10 |
No |
Yes |
Yes |
a,d |
$100 fine
(6) |
| NH |
FR only, UM |
25/50/25 |
No |
No (5) |
No |
None |
None |
| NJ |
BI & PD Liab, PIP, UM |
15/30/5 (12) |
No |
Yes |
Yes |
d |
$300-$1,000 fine, community service, 1-year license suspension |
| NM |
BI & PD Liab |
25/50/10 |
Yes |
No |
No |
a,c |
$100 fine (6) |
| NY |
BI & PD Liab, PIP, UM |
25/50/10 (13) |
Yes |
Yes |
Yes |
a,d |
1-year
license revocation |
| NC |
BI & PD Liab |
30/60/25 |
No |
No |
No |
a,d |
60-day registration
suspension (6) |
| ND |
BI & PD Liab, PIP, UM |
25/50/25 |
No |
No (5) |
No |
a |
$150 fine,
registration revocation, license suspension (6) |
| OH |
BI & PD Liab |
12.5/25/7.5 |
No |
Yes |
Yes |
a |
90-day license suspension,
$75 reinstatement fee |
| OK |
BI & PD Liab |
25/50/25 |
Yes |
Yes |
Yes |
a |
Less than
$500 fine, less than 6 months jail (6) |
| OR |
BI & PD Liab,
PIP, UM |
25/50/10 |
No |
Yes |
Yes |
a,c |
License suspension and/or
revocation (6) |
| PA |
BI & PD Liab, PIP |
15/30/5 |
No |
Yes |
Yes |
a |
License
and registration suspension, confiscation of plates (6) |
| RI |
BI & PD Liab, UM |
25/50/25 (9) |
No |
No |
No |
a,c |
$100-$500 fine, up to 3
months license/registration suspension |
| SC |
BI & PD Liab, UM |
15/30/10 |
Yes |
Yes |
Yes |
a,d |
$100-$200
fine, less than 30 days jail |
| SD |
BI & PD Liab, UM |
25/50/25 |
No |
Yes |
Yes |
a |
1-year license suspension
(6) |
| TN |
FR only |
25/50/10 (9) |
No |
No |
Yes (14) |
a |
$100 fine |
| TX |
BI & PD Liab |
20/40/15 |
Yes |
Yes |
* |
a |
$175-$350 fine |
| UT |
BI & PD Liab, PIP |
25/50/15 (9) |
No |
Yes |
Yes |
a |
$400 fine |
| VT |
BI & PD Liab, UM,
UIM |
25/50/10 |
No |
Yes |
Yes |
a |
Less than $100 fine (6) |
| VA |
BI & PD Liab, UM |
25/50/20 |
No |
No |
No |
a,b,c |
None |
| WA |
BI & PD Liab |
25/50/10 |
No |
No |
No |
a |
$250 fine, community
restitution (6) |
| WV |
BI & PD Liab, UM |
20/40/10 |
Yes |
Yes |
Yes |
a |
30-day
license suspension, registration revocation, $200-$5,000 fine |
| WI |
FR only, UM |
25/50/10 |
No |
No |
No |
a |
License and or registration
revocation (6) |
| WY |
BI & PD Liab |
25/50/20 |
Yes |
Yes |
Yes |
a |
Up to $750
fine; up to six months in jail |
|
(1) Proof of valid insurance.
The form of evidence varies by state and may take the
form of an insurance policy, binder, certificate of
self-insurance, surety bonds, or certificate of deposit.
Many states require insurance identification cards issued
by the insurer.
Self-certification, where the driver is required to identify the
insurer and policy number in writing rather than in person, is
not included.
(2) Compulsory Coverages:
BI Liab=Bodily injury liability
PD Liab=Property damage liability
UM=Uninsured motorist
PD=Physical damage
Med=First party (policyholder) medical expenses
UIM=Underinsured motorist
PIP=Personal Injury Protection. Mandatory in no-fault states.
Includes medical, rehabilitation, loss of earnings and
funeral expenses. In
some states PIP includes essential services such as child care.
FR=Financial responsibility only.
Insurance not compulsory.
(3) The first two numbers refer to bodily injury liability
limits and the third number to property liability.
For example, 20/40/10 means coverage up to $40,000 for
all persons injured in an accident, subject to a limit of
$20,000 for one individual, and $10,000 coverage for property
damage.
(4) a.
Insurer must notify Department of Motor Vehicles or other
state agency of cancellation or nonrenewal.
b. Insurer must
verify financial responsibility or insurance after an accident
or arrest.
c. Insurer must
verify randomly selected insurance policies upon request.
d. Insurers
must submit entire list of insurance in effect, which may be
compared with registrations at a state agency.
Also known as a computer data law.
(5) Insured must
provide evidence of insurance at some point after the accident
to the Department of Insurance, other state agency, or law
enforcement officer.
Deadlines vary among the states.
(6) Penalties are provided for in the law but may not be
mandatory for first offenses.
(7) Proof of insurance must be presented within 30 days of
registration.
(8) Low-cost policy limits for Los Angeles
and San Francisco
low-income drivers in the California Automobile Assigned Risk
Plan are 10/20/3;
pilot program effective
January 1, 2000 until
January 1, 2007.
(9) Instead of policy limits, policyholders can satisfy the
requirement with a combined single limit policy. Amounts vary by
state.
(10) In addition, policyholders must also carry at least $1,000
for medical payments.
(11) May be waived for the policyholder but is compulsory for
passengers.
(12) Basic policy (optional) limits are 10/10/5. Uninsured and
underinsured motorist coverge not available under the basic
policy but uninsured motorist coverage is required under the
standard policy.
(13) In addition, policyholders must have 50/100 for wrongful
death coverage.
(14) Although legally defined as financial responsibility,
Tennessee's law is similar to a compulsory law because drivers
can be fined if stopped by police or after crashes if they
cannot show proof of financial responsibility.
*SB 1670, effective September 1, 2005 requires the Texas
Department of Insurance to establish a vehicle insurance
verification system.
Source:
Property Casualty Insurers Association of America; state
departments of insurance and motor vehicles. |
STATE AUTO INSURANCE LAWS GOVERNING LIABILITY
COVERAGE
- In the following 28 states auto liability is based on the
traditional tort liability system. In these states, there are no
restrictions on lawsuits:
Alabama
Alaska
Arizona
California
Colorado
Connecticut
Georgia
Idaho
Illinois
Indiana
Iowa
Louisiana
Maine
Mississippi
Missouri
Montana
Nebraska
Nevada
New Mexico
North Carolina
Ohio
Oklahoma
Rhode Island
South Carolina
Tennessee
Vermont
West Virginia
Wyoming
SEAT-BELT LAWS
Only 22 states and the District of Columbia have a primary seat-belt
enforcement law, which allows law enforcement officers to stop a car for
noncompliance with seat-belt laws. Most states have secondary laws;
officals can only issue seat-belt violation if they stop motorists for
other infractions. New Hampshire is the only state that does not have a
seat-belt law that applies to adults.
- Seat-belt use reached a record 82 percent nationwide in June
2005. States with primary seat-belt laws had an average 85
percent usage rate, versus 75 percent in states with secondary
laws.
STATE SEAT-BELT USE LAWS
State |
Enacted Legislation Effective Date |
2004 Usage Rate (1) |
Primary Enforcement (2) |
Additional Information (3)
|
| Alabama |
6/1/2000 |
80.0% |
X |
$25 fine; front seat only |
| Alaska |
9/12/1990 |
76.7 |
|
$15 fine; all seats; damage
mitigation by case law only |
| Arizona |
1/1/1991 |
95.3 |
|
damage mitigation; $10 fine;
all seats |
| Arkansas |
7/15/1991 |
64.2 |
|
$25 fine; front seat only |
| California |
1/1/1986 |
90.4 |
X |
$20 fine; all seats |
| Colorado |
7/1/1987 |
79.3 |
|
$15 fine; front seat only;
limited damage mitigation |
| Connecticut |
1/1/1986 |
82.9 |
X |
$15-$37 fine; front seat
only |
| Delaware |
1/1/1992 |
82.3 |
X |
$25 fine; all seats |
| D.C. |
12/12/1985 |
87.1 |
X |
$50 fine; all seats |
| Florida |
7/1/1986 |
76.3 |
|
damage mitigation; $30 fine;
all seats |
| Georgia |
9/1/1988 |
86.7 |
X |
$15 fine; all seats |
| Hawaii |
12/16/1985 |
95.1 |
X |
$45 fine; all seats |
| Idaho |
7/1/1986 |
74.0 |
|
$25 fine; all seats |
| Illinois |
7/1/1985 |
83.0 |
X |
$25 fine; front seat only
(4) |
| Indiana |
7/1/1987 |
83.4 |
X |
$25 fine; front seat only |
| Iowa |
7/1/1986 |
86.4 |
X |
damage mitigation up to 5%
max; $10 fine; front seat only |
| Kansas |
7/1/1986 |
68.3 |
|
$10 fine; front seat only |
| Kentucky |
7/13/1994 |
66.0 |
|
$25 fine; all seats |
| Louisiana |
7/1/1986 |
75.0 |
X |
$25 fine; front seat only |
| Maine |
12/27/1995 |
72.3 |
|
$50 fine; all seats |
| Maryland |
7/1/1986 |
89.0 |
X |
$25 fine; front seat only |
| Massachusetts |
2/1/1994 |
63.3 |
|
$25 fine; all seats |
| Michigan |
4/1/2000 |
90.5 |
X |
damage mitigation up to 5%
max; $25 fine; all seats |
| Minnesota |
10/1/1986 |
82.1 |
|
$25 fine; front seat only |
| Mississippi |
3/20/1990 |
63.2 |
(5) |
$25 fine; all seats |
| Missouri |
9/28/1985 |
75.9 |
(5) |
damage mitigation up to 1%
max; $10 fine; all seats |
| Montana |
10/1/1987 |
80.9 |
|
$20 fine; all seats |
| Nebraska |
1/1/1993 |
79.2 |
|
damage mitigation up to 5%
max; $25 fine; front seat only |
| Nevada |
7/1/1987 |
86.6 |
|
$25 fine; all seats |
| New Hampshire |
|
NA |
|
under 18 yrs old: $25 fine |
| New Jersey |
5/1/2000 |
82.0 |
X |
$20 fine; damage mitigation;
all seats |
| New Mexico |
1/1/1986 |
89.7 |
X |
$25 fine; all seats |
| New York |
12/1/1984 |
85.0 |
X |
damage mitigation; $50 fine;
all seats |
| North Carolina |
10/1/1985 |
86.1 |
X |
$25 fine; front seat only |
| North Dakota |
7/14/1994 |
67.4 |
|
damage mitigation; $20 fine;
front seat only |
| Ohio |
5/6/1986 |
74.1 |
|
damage mitigation; $20-$30
fine; front seat only |
| Oklahoma |
2/1/1987 |
80.3 |
X |
$20 fine; front seat only |
| Oregon |
12/7/1990 |
92.6 |
X |
damage mitigation; $75 fine;
all seats |
| Pennsylvania |
11/23/1987 |
81.8 |
|
$10 fine; front seat only |
| Rhode Island |
6/1/1991 |
76.2 |
(5) |
$57 fine; all seats |
| South Carolina |
7/1/1989 |
65.7 |
X* |
$10 fine; all seats |
| South Dakota |
1/1/1995 |
69.4 |
|
$20 fine; front seat only |
| Tennessee |
4/21/1986 |
72.0 |
X |
up to $50 fine |
| Texas |
9/1/1985 |
83.2 |
X |
$200 fine; all seats |
| Utah |
4/28/1986 |
85.7 |
(5) |
$45 fine; all seats |
| Vermont |
1/1/1994 |
79.9 |
|
$25 fine; all seats |
| Virginia |
1/1/1988 |
79.9 |
|
$25 fine; front seat only |
| Washington |
6/11/1986 |
94.2 |
X |
$37 fine; all seats |
| West Virginia |
9/1/1993 |
75.8 |
|
damage mitigation up to 5%
max for medical expenses only; $25 fine; all seats |
| Wisconsin |
12/1/1987 |
72.4 |
|
damage mitigation up to 15%
max; $10 fine; all seats |
| Wyoming |
6/8/1989 |
70.1 |
|
$10-$25 fine; all seats |
| United States |
|
80.0 |
|
|
|
(1)
Surveys used by states must be actual observation of shoulder
belt use by drivers and front seat passengers.
(2) Primary enforcement means police may stop a vehicle and
issue a fine for noncompliance with seat belt laws.
In other states, the law provides for secondary
enforcement. This
means that police may issue a fine for not wearing a seat belt
only if the vehicle has been stopped for other traffic
violations.
(3) Applies to motor vehicle operators and passengers who are 16
years old and older.
Damage mitigation means that a violation may result in
damages, a legal term meaning court awarded compensation for
injury, being reduced up to a certain percentage.
Fines are the maximum allowed by law.
(4) All seats if driver is under 18.
(5) Primary enforcement for children; ages vary.
*Effective 12/9/2005.
NA=Data not available.
Source: National Highway
Traffic Safety Administration,
U.S. Department of
Transportation; Insurance Institute for Highway Safety. |
DRUNK DRIVING LAWS
By 2004 every state and the District of Columbia had lowered the limit
defining drunk driving from 0.10 BAC (blood-alcohol content) to 0.08.
STATE LAWS CURBING DRUNK DRIVING
- All states and the District of Columbia have adopted 21 as
the legal drinking age.
- All states have lower limits for under-21 drivers, most
between 0.00 and 0.02 BAC.
- In 2004, 16,694 traffic deaths were alcohol-related, down
2.4 percent from 17,105 in 2003.
- A death is considered alcohol-related when any person
involved in the accident had some measure of alcohol in his or
her blood, even if it was below the legal limit.
- In 2004, 39 percent of all traffic fatalities were
alcohol-related, down from 40 percent in 2003.
- A major factor in the long-term downward trend in
alcohol-related fatalities is the enactment, beginning in the
1980s, of state laws designed to deter drunk driving such as:
Requiring persons to be at least 21 years old before they can
purchase alcohol
Mandatory drivers license revocation when a driver's BAC level
is above the state's legal limit
Lowering the legal BAC level to 0.08
Prohibiting open containers of alcoholic beverages in motor
vehicles
Increasing measures to prevent under-age drivers from obtaining
alcohol
Canceling the vehicle registration of drivers who have had their
licenses suspended or revoked due to alcohol-related offenses
Instituting sobriety checkpoints.
OLDER DRIVERS
“Older” drivers (age 70 and older) have higher rates of fatal crashes,
based on estimated annual travel, than any other group except young
drivers, according to the U.S. Department of Transportation, in part
because they are less likely to survive the trauma of an accident.
Recognizing the higher crash rates and the need for older
drivers to retain their mobility and independence, some states issue
restricted licenses. Depending on ability, older drivers may be limited
to driving during daylight hours or on nonfreeway types of roads. In
most states, restrictions such as these can be placed on anyone’s
drivers license, regardless of age, if their medical condition warrants
it.
STATE DRIVERS LICENSE RENEWAL LAWS INCLUDING
REQUIREMENTS FOR OLDER DRIVERS
|
