What does compulsory and voluntary mean on car insurance?

Compulsory is mandatory If you want to drive a vehicle, then you need to insure it. It doesn’t matter if you rent, lease, or own the car. You must have insurance. If you don’t, you may be forced to pay an expensive fine.

Every state has different requirements for what mandatory insurance covers.

For example, California requires you to have bodily injury liability coverage that equals $15,000 per person, $30,000 per accident for bodily

What does the word mandatory mean on car insurance?

mandatory car insurance is mandatory in that you must have insurance to drive legally in most states. If you were to get pulled over by the police and they found out you were driving without insurance, they would fine you. Aside from mandatory insurance, you can choose to buy additional optional coverage.

What does mandatory mean on car insurance?

If you fail to pay your insurance premiums, your insurance company can terminate your policy. If you have a lease or loan on the car, your insurance company can terminate your lease or loan. Your insurance company can also terminate your policy if you file a fraudulent claim, such as filing a claim after damaging your own car.

What does compulsory means on car insurance?

Compulsory insurance for your car is mandatory. It's similar to mandatory seatbelt use. Your car insurance company is required by law to provide coverage for damage if you cause a loss. The coverage is limited in some cases, like where you're found to be at fault. If you drive a leased vehicle, you will likely be required to carry insurance.

What does compulsory mean on car insurance?

Compulsory insurance is mandatory and you must have it to drive legally. If you drive a vehicle in the U.S., you automatically have mandatory insurance coverage. This means that you must have a policy that covers the costs of other drivers, pedestrians, or other vehicles that you may hit. Your coverage may also include comprehensive insurance, which protects your vehicle from damage outside of normal wear and tear, such as a crash or getting hit by a tornado.