What Year was Car Insurance Mandatory?

Car Insurance became mandatory in all 48 states sometime between the years 1927 and 2000. Some sources say that it was mandated in 1927, others claim that it was 2000, but most sources agree on the year as being somewhere in between.

The law also allows insurance companies to charge a fine to anyone who does not comply with the mandatory requirement of car insurance. The amount of the fine is at the discretion of the individual states. Some states, like Virginia, have a maximum fine of $250.

In other states, like Missouri, there is no maximum fine to impound cars and collect fines until they improve their insurance status

The mandatory requirement that citizens acquire car insurance was passed under the Motor Vehicle Information and Cost Savings Act. This was a bill passed by Congress on October 22nd, 1993. The Bill was proposed by then-President Clinton and was passed under a Democratic Congress. The Act also required that states maintain a minimum amount of information about all registered vehicles, including information that would allow insurance companies to charge appropriately for premiums.

The law is recorded as Title 15 of the United States Code, section 1623(a) and (d). In it, there are 3 main parts. The first is the motor vehicle information, while the second is the cost savings and finally, the third, is fine. The first part of the bill discusses that insurance companies would have to maintain certain information about vehicles.

This would include who owns a car and where it currently resides, as well as licensing information. Moreover, it would also discuss how many crashes have occurred on a specific vehicle in a given time period. The last part of this section talks about how such companies can use this information to set their rates for insurance.

Also, Read;

Car insurance today in United State

What Year was Car Insurance Mandatory
Mandatory Car Insurance

Some of the most frequent questions people have are “What is car insurance?”, “Do I need car insurance?”, “How much car insurance costs?”

This article is going to answer all of these questions and more!

Car insurance is a policy that protects you against damage or injury to your vehicle. It can also help protect you against lost wages if you are involved in an accident with someone else. There are different types of coverage for different amounts of protection.

Who needs car insurance?

You can get car insurance out of a number of different places. The first place is your credit card company. Many credit cards will include coverage for repair costs, other kinds of damage, and loss of income if you are involved in an accident with someone else. Some credit cards may even include a physical injury liability which will protect you against injury accidents in addition to collision coverage. You can also get car insurance from an independent agent, or you can purchase it through an online company.

You are required by law to have insurance if you want to drive in any state except New Hampshire. The only reason that they don’t require insurance is that they will not allow your plates to be replaced with a plate that doesn’t allow you to drive. This is especially important in the event of theft since then, the thief may not be able to register your car under their own name and identification.

Who needs collision?

A collision insurance policy protects you against damage to your car due to an accident, such as a fender bender. You will also want to get collision coverage if at least one person involved in an accident is a minor child or a passenger of the other driver. If you are hit by someone else’s car and their insurance does not cover it, their insurance company will pay for the repairs but you must cover any other expenses that are involved in the accident, like property damage.


It has been difficult to find definitive information about when car insurance became mandatory. Most sources agree on the year as being somewhere between 1999 and 2000, but it is possible that sources are mistaken and the year is actually different. We are unable to provide an answer for you, but we hope you enjoy our blog post on the car insurance timeline. If you have any further questions, please don’t hesitate to reach out to us atanswermeall.com@gmail.com.

Thank you for reading, we would love to hear from you!

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top