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Why States Started to Mandate Auto Insurance

Did you know that auto insurance is typically required in the United States? If you’re operating an uninsured vehicle, you could get in trouble with the police and other authorities. If you get into an accident while uninsured, you might also face hefty liabilities that you’ll have to pay out of your own pocket. If you’d like to explore auto insurance policies, contact the Prestige Insurance Group, which serves the greater Miami, FL area.

Why States Require Auto Insurance

In 1927, Massachusetts became the first state to require auto insurance. Cars had already been on the road for a few decades, and they were getting faster and more powerful. Roadways were starting to crisscross the United States and other countries, and more families were relying on cars. By 1927, there were more than 20 million cars on the road in the United States alone.

As more people started to drive, car accidents began to occur more often. Since cars can move so fast and are so heavy, auto accidents can quickly result in severe injuries and death. Often, the person who caused the accident was liable. However, in many cases, that person died or simply didn’t have the money to pay. Likewise, determining who was at fault can be really difficult.

Massachusetts decided to make car insurance mandatory so that people’s health care bills would be covered in the event of an accident. If an accident occurred, auto insurance could pick up the tab.

Despite the obvious benefits of car insurance, it wouldn’t become a more widespread requirement until 1956. That year, New York required it, and shortly after, North Carolina also made car insurance required. From there, auto insurance requirements quickly spread, and by the 1970s most states had requirements.

Want to enjoy the benefits of auto insurance?

Get in touch with the Prestige Insurance Group, serving the greater Miami, FL area.

Is there anything auto insurance doesn’t cover?

Your car insurance from Prestige Insurance Group may save you during accidents and many other incidents in Miami, FL. But like most things in life, your car insurance isn’t entirely faultless. There are “holes” in your standard car insurance policy, and you need to know about them so that you can purchase “add-ons” to boost your coverage.

Here are potential areas not likely to be covered by your car insurance:

  • Drivers excluded in your policy: If you want someone to drive your vehicle, you should inform your insurer. Otherwise, the damage they cause while driving your vehicle may not be covered. Parents make a common mistake of letting their sons and daughters drive their cars without including them in their policies. Always inform your insurer when sharing your vehicle with someone, even if they live with you.
  • Items in your vehicle: Stolen personal items in your car aren’t covered by your car insurance. So, if your laptop or phone is stolen while inside your vehicle, you may have to file a claim with your home or renters insurance company.
  • Modifications: Tune-ups to improve performance and “mods” to make your vehicle aesthetically appealing aren’t covered by typical car insurance. However, you can purchase a special insurance policy to cover these modifications.
  • Business use: Your standard auto insurance doesn’t protect your car when using it to run operations of a commercial nature. Always upgrade personal auto insurance to commercial when using your vehicle for business reasons.
  • Wear and tear: If your paint starts fading away or your suspension starts making creaky sounds, don’t file a claim with your insurance because maintenance issues aren’t covered by auto insurance.

Want to learn more about car insurance in Miami, FL? Please get in touch with Prestige Insurance Group to help you understand the nitty-gritty of your car insurance policy.


What could happen if I have a lapse in auto insurance coverage?

The Miami, FL area is a very popular place to move to either full-time or to use as a vacation destination. If you are going to live in this community, you will want to own a car as it can make it much easier to enjoy all that the city and surrounding areas have to offer. Along with owning a car, you need to have insurance coverage at all times. If you allow the coverage to lapse, a few negative situations could occur.

No Protection for Vehicle

If you allow your insurance plan to lapse, you will end up losing your coverage for your vehicle. Having an auto insurance plan is extremely important as it will give the protection you need to repair or replace your vehicle if there is an accident or it is stolen. If you allow your plan to lapse, you could lose this protection.

Violation of Law

All drivers that are in Florida are required to carry liability insurance, which helps ensure you can cover damages that may be caused by an accident. If you allow your plan to lapse and do not renew it on time, you will lose this protection. This could put you in violation of the law, which may come with penalization. 

Having insurance in place at all times is very important. As you are looking for an auto insurance plan in the Miami, FL area, it would be helpful for you to call the Prestige Insurance Group. Choosing the right insurance plan for your vehicle is a big decision and the Prestige Insurance Group can help you by giving the support needed to fully assess your needs and options. The team can help you build a plan that will give the ideal coverage for your situation. 

Who should get an auto insurance policy in Florida?

If you live in the Miami, FL area, you likely will enjoy being able to experience all that the city and metro area has to offer. For those that are in this area of the state, it is vital that you have a vehicle that is adequately insured. There are several situations when someone will need to have auto insurance in place.

Someone with a Car Loan

When you take out a loan to purchase your car, you are going to need to stay in compliance with your own agreement. Most of the time, this is going to include carrying collision and comprehensive insurance for your vehicle at all times. If you do not have this type of coverage, you will be in default of the loan agreement.

Those Driving on a Public Road

You will also need to get auto insurance if you ever plan on driving your vehicle on a public road. In the state of Florida, drivers are mandated to carry liability insurance whenever they go out for a drive. This form of insurance coverage ensures all other parties that you are able to pay for damages if you cause an accident. Those that do not carry this form of insurance could be penalized.

As you are shopping for auto insurance in the Miami, FL area, you could find that it is hard to pick a policy. Fortunately, the team at the Prestige Insurance Group can help to make this easier for you. The insurance professionals at the Prestige Insurance Group will provide you with the advice and guidance you need to pick a new policy that provides the right coverage. 

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