Regardless of the place you reside in the USA, in case you drive, you’re most likely going to have to hold auto insurance coverage. You possibly can legally stay in a house that’s uninsured, however on the subject of the highway, you’re not simply chargeable for your personal security, but in addition for the protection of everybody else with whom you share this nation’s highways and metropolis streets. However the place, when and the way did auto insurance coverage turn into obligatory?
The necessity for obligatory auto insurance coverage began to turn into increasingly more obvious within the first few many years of the Twentieth Century. Twenty years prior, an vehicle was a novelty, sharing roads with horses and carts. By 1925, vehicles turned extra widespread, and so did auto accidents.
In 1925, Connecticut handed a legislation requiring anybody proudly owning a automobile to have the ability to cowl a minimum of $10,000 in damages. If one couldn’t pay for these damages out of pocket, they may purchase a legal responsibility coverage. Across the similar time, Massachusetts handed the primary obligatory insurance coverage legislation: Even in case you might cowl the damages out of pocket, you continue to had to purchase insurance coverage. Massachusetts wouldn’t permit drivers to register their automobile with out legal responsibility safety.
As late as 1956, nevertheless, Massachusetts stood alone in sustaining a obligatory insurance coverage legislation. Over the subsequent twenty years, the remainder of the nation would fall in line — beginning with North Carolina in 1957. This can be probably the most shocking particulars within the historical past of auto insurance coverage: The primary and second obligatory insurance coverage legal guidelines have been handed thirty years aside. It took three many years for the remainder of the nation to catch as much as Massachusetts.
In the present day, New Hampshire is the one state the place a driver isn’t essentially required to hold automobile insurance coverage. Nevertheless, New Hampshire will maintain the at-fault driver accountable within the occasion of an auto accident — the identical as some other state. So, simply because it’s authorized to drive in New Hampshire with out insurance coverage doesn’t imply it’s sensible.