Traffic on a four-lane highway. The problem arises when it comes to determining just how much insurance drivers should be required to have. Ideally, each driver should have enough coverage to pay for all injuries to other parties and to repair or replace all vehicles or property damaged in the accident. (Photo: Jevanto Productions/Adobe Stock)

No one disputes the American love affair with vehicles. American muscle cars are quite popular among many, and while automatic transmissions have been around for a long time there are still those who like to drive a manual. There are 284 million vehicles on American roadways, with 227 million licensed drivers. Unfortunately, the love of driving doesn’t make us good at it, as there are an average of 6 million accidents each year. The annual cost of these accidents for property damage, injuries, lost productivity and other expenses is $800 billion.

Because of these costs, states require drivers to carry insurance that provides coverage for injuries and property damage, both for the insured and any innocent parties that may be involved in an accident — otherwise known as financial responsibility minimum limits. This coverage allows people to be made whole after an accident, so their injuries can be treated and their vehicles or other damaged property can be repaired or replaced.

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