In the United States, auto insurance is compulsory in most
states, though enforcement of the requirement varies from state
to state. The state of New Hampshire, for example, does not
require motorists to carry liability insurance, while in
Virginia residents must pay the state an annual fee per vehicle
if they choose not to buy liability insurance. Penalties for not
purchasing auto insurance vary by state, but often involve a
substantial fine, license and/or registration suspension or
revocation, as well as possible jail time in some states.
Usually, the minimum required by law is third party insurance to
protect third parties against the financial consequences of
loss, damage or injury caused by a vehicle.
Arizona Department of Transportation Research Project Manager has recommended that car insurers issue license plates, and that they be held responsible for the full cost of injuries and property damages caused by their licensees. Plates would expire at the end of the insurance coverage period, and licensees would need to return their plates to their insurance office in order to receive a refund on their premiums. Vehicles driving without insurance would thus be easy to spot because they would not have license plates, or the plates would be past the marked expiration date.
Arizona Department of Transportation Research Project Manager has recommended that car insurers issue license plates, and that they be held responsible for the full cost of injuries and property damages caused by their licensees. Plates would expire at the end of the insurance coverage period, and licensees would need to return their plates to their insurance office in order to receive a refund on their premiums. Vehicles driving without insurance would thus be easy to spot because they would not have license plates, or the plates would be past the marked expiration date.