Driving Less in the United States

Some other states have weak, partial no-fault laws. Michigan is the only state with "true" no-fault.

I was involved (as a passenger) in a serious accident in upstate NY in 1988. It gave rise to a lawsuit that dragged on for years.

 

Ugh, there's so much WRONG in this thread in the last day that it's frustrating. For the record, most of you sound like idiots when you're talking about insurance. Sorry, I'm not going to sugar coat it - YOU DON'T KNOW WHAT YOU'RE TALKING ABOUT.

Let's be clear about something: "mandatory" insurance only applies to liability. If you pay cash for a car, you are under absolutely no obligation to insure the comprehensive/collision according to the state. Liability insurance is required in every single state in the US - no exceptions unless you can demonstrate that you can pay for claims yourself. In some states (VA, VT, NH), the bar is set fairly low, but the courts generally put a greater burden on those that cause big injuries. If you don't want to protect your investment, none of the 50 states will force you. Effectively, buying liability for the same make of a car in slightly different years (this year's vs. last year's for instance) should generate no real difference in premium. So insuring a new car is so expensive because it cost more. It is a pure rate to value equation.

Mandatory liability coverage solves a social ill - it provides a safety net for people that are injured by other drivers. It is a Good Thing. I think that the minimums that are required are an absolute joke in most cases, but that's my opinion and you're welcome to have your own. However, I suggest that any driver purchase Uninsured/Underinsured Motorist coverage for the simple reason that there are lots of bad ways to get hurt by other drivers and $10,000 doesn't go very far.

No Fault States are great for little claims, under $1,000, when both parties have insurance. However, if there are any real injuries or if one party isn't insured, then they become nightmares for insurance companies. Michigan liability rates are higher than the surrounding states. So while it may seem like a good idea, the fact that lots of folks in Indiana pay a lot less makes the argument tougher.

 

As far as my department is concerned, a crash occurred because of a violation of the law. So someone is getting cited. Or both. That's what an investigation is for.
If I catch you in my state without insurance, I will suspend your license.