In the U.S., car insurance covering liability for injuries and property damage done to others is compulsory in most states, though different states enforce the requirement differently. The state of New Hampshire, for example, does not require motorists to carry liability insurance. Virginia residents must pay the state a $500 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 or registration suspension or revocation, as well as possible jail time. 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. Continue reading →