Car Insurance Becomes the Law Mandatory car insurance is determined on a state-by-state basis, not through the federal government. Connecticut and Massachusetts were the first states to require liability car insurance in 1925, through liability and compulsory coverage in case of auto accidents.

When did California require auto insurance?

1984
The California Supreme Court on Monday unanimously upheld the 1984 state mandatory auto insurance law requiring motorists stopped for traffic violations to prove they have liability coverage or eventually face losing their licenses.

When was car insurance made a legal requirement?

1930
It has been compulsory since it was introduced with the Road Traffic Act 1930. However, third party only covers the other party’s damage and injuries if you’re involved in an accident where you’re at fault. It doesn’t cover any damage to your car or injury to you.

When did auto insurance become mandatory in Texas?

The State of Texas passed a mandatory automobile liability insurance law in 1991.

Which is the first state to offer auto liability insurance?

The first state to offer auto liability insurance was Connecticut, in 1925 Until 1957, Massachusetts remained the only state that required auto insurance by law Because of this mandatory requirement, almost all drivers in nearly all states purchase auto insurance

When did car insurance become mandatory in most states?

Truly mandatory auto insurance became necessary in most states in the 1970s. Massachusetts was the first state (second to Connecticut’s financial responsibility statute and premise) to make auto insurance mandatory for drivers in 1927. Start comparing quotes using our free tool now! What did early Connecticut auto insurance laws require?

Do you have to have liability insurance to drive a car?

Virtually all states require drivers to have auto liability insurance before they can legally drive a motor vehicle. Liability insurance pays the other driver’s medical, vehicle repair and other costs when the policyholder is at fault in an accident.

What are the minimum requirements for auto insurance?

All but two states have minimum liability requirements that all drivers must meet before getting behind the wheel. New Hampshire and Virginia only require you be able to cover the financial liability of a car accident. In many states, the minimum amount of automobile insurance covered by law for bodily injury and liability is $50,000 and $25,000.