Several states have passed new car insurance laws in recent years, forcing vehicle owners to spend more money on their premiums without getting anything extra in return.
In fact, some states have increased the minimum amount of protection drivers must carry without giving them a choice. Naturally, the cost of everything will continue to rise due to inflation, and insurance premiums are no exception. However, some of the cost increases are drastic.
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Although the cost of insurance is rising, nothing is more expensive than driving without insurance. If you cause an accident and you aren’t covered, you’ll be personally responsible for financially compensating the other party.
If you get sued, you can expect the other party to be awarded a large sum of money. For example, Fort Worth car accident attorneys routinely get large awards for their injured clients in court.
Much has changed in the car insurance world, and even if you follow law blogs, they might not be updated with current information. Here’s a look at how new laws (and laws you may not know about) are making it more expensive than ever to drive a car.
North Carolina has raised the minimum required coverage
Beginning in 2025, North Carolina will have the highest minimum car insurance coverage requirements in the United States, which will allow crash victims to collect even more compensation from their claims.
Currently, the minimum coverage drivers must carry is $25,000 for property damage and $60,000 for injuries. When the new law takes effect, drivers will be required to carry $50,000 for property damage and $100,000 for injuries.
Insurance experts have estimated this to result in a 5% increase, but the exact increase won’t really be known until drivers start paying their bills.
All Virginia Car owners will need to carry car insurance
For people who own multiple cars in Virginia, life just got a little more expensive as of July 1, 2024. In 2023, the state ended the ability to register an uninsured vehicle for an extra fee of $500. Virginia now requires all registered vehicles to be insured, whether or not you actually drive them.
If you don’t plan on driving a vehicle and want to avoid the unnecessary expense of insurance, you’ll need to register it as a non-operational vehicle. This is bad news for people who have multiple cars they don’t drive, but need to keep registered to comply with lease requirements. Many landlords require all vehicles parked on the property to be fully operational and have current registration, even if they’re parked in the garage or on acreage.
Although being able to register a car without insurance was convenient for people who just wanted to park an extra vehicle on their property that meets their landlords requirements, it was abused for years by people who were looking for an easy way to drive without insurance and hopefully fly under police radar.
California drivers are being denied insurance
Many drivers in California are being hit with excessive premium increases, delayed quotes, inconsistent quotes, and unfair rejections. In California, all auto insurance companies are required to insure “good drivers” who, for the last three years, have had a valid license and have received no more than one point on their record. They’re also required to provide good drivers with a 20% discount. However, since insurance premiums are calculated using a variety of factors, including an individual’s credit score, people don’t always seem to get a good deal. Others are being outright rejected with no explanation.
There’s good news from Illinois – maybe
Despite all the new laws that are increasing insurance premiums across the states, Illinois introduced House Bill 4767 to prevent insurance companies from using race, gender, age, ethnicity, and immigration status to determine a person’s rates. While racial discrimination is already illegal, car insurance companies routinely charge higher rates for older drivers and males.
If this bill passes, it might seem like a win, but the insurance companies will probably just raise their rates across the board for everyone to compensate for their inability to charge differently based on gender and age.
Car insurance is necessary despite the cost
Although it’s expensive, car insurance is a necessary expense. In most states, you can’t legally drive without it, and if you cause an accident that results in property damage or injuries, you will be held legally responsible for the damages. Even if you’re the one who gets hit and the other driver is at fault, you could get countersued for not having insurance and you might lose your claim altogether.
