As a first-time car owner, you need to take care of some basic requirements before hitting the road. We're not just talking about checking your car and inspecting it for potential issues. You also need to contact a car insurance company and get the necessary policy for your vehicle. Learning more about a potential purchase is always important before putting the money down for it. Continue reading below to learn about the basics of auto insurance.

Is Car Insurance Required Everywhere?

Whenever the topic of car insurance comes up, people inevitably ask if they are required to get it. The answer to that question depends on where you live. According to our team, all but two states require motorists to purchase auto insurance, with the exceptions being New Hampshire and Virginia.

Although New Hampshire and Virginia don't require residents to purchase car insurance, both states still have ways to hold motorists accountable. In New Hampshire, you must provide proof of financial responsibility if you don't have insurance, and you can still be held liable for any accident you cause. According to the Virginia DMV, Virginia motorists can bypass insurance requirements by paying an annual $500 fee, but that does not offer accident coverage.

What Forms of Coverage Are Required?

The contents of all car insurance contracts are not the same, but they will feature at least two similar elements. Those similar elements are bodily injury liability and property damage liability. Bodily injury liability pays for any expenses related to injuries other people sustained in an accident you caused. Property damage liability works the same way but only covers damage to another vehicle or other possessions.

Aside from those two elements, you may also be required to purchase uninsured/underinsured motorist coverage and personal injury protection (PIP) from a car insurance company. Whether you are required to have those additional elements will depend on where you live. Since uninsured/underinsured coverage protects against hit-and-run accidents while PIP covers your medical bills, they are also essential policy elements.

How Long Does Car Insurance Last?

Car insurance is not a one-time purchase. Most insurers offer policies that last for either six months or one year. Motorists have shown that they are fine with those contract limits. According to Agency Performance Partners, around 91% of car insurance policyholders in the U.S. renew their contracts annually.



Be a responsible motorist and purchase auto insurance before you start driving. Contact Matlack & Company today if you're looking for a reputable car insurance company in Glendora, NJ. Allow us to provide the auto insurance plan that fits your needs and budget perfectly!