Feb 2, 2019

The Law Requires You to Have Car Insurance. So Why Not Health Insurance?

The United States has a complicated legal system. Each state has the power to make any law they want on nearly any topic as long as these laws are consistent with the rights of their citizens as guaranteed by the US constitution. On the other hand, the federal government has powers that are limited and can only make laws as they relate to the constitution. This structure is the reason why states can require its licensed drivers to have car insurance but the federal government cannot mandate that everyone in the country have health insurance.


Why Do Most States Mandate Car Insurance?

Every state except New Hampshire requires its drivers to carry a minimum level of car insurance. Some states also demand emissions tests, vehicle safety inspections or both. These mandates do not exist to protect the drivers of the cars, but the people who may suffer injury or vehicle damage due to the actions of others. Basically, the states believe that it is unfair for someone to be burdened with high medical and repair bills for an accident that was not their fault.

Florida Car insurance Requirements

Each state has set its own minimum car insurance requirements. To legally operate a motor vehicle in Florida, the minimum auto insurance coverage the driver must have is:

  • Bodily Injury coverage: $10,000 per person and $20,000 per accident*
  • Property Damage coverage: $10,000 per accident
  • Uninsured Motorist coverage: $10,000 per person and $20,000 per accident*
  • Personal Injury Protection: $10,000

The personal injury protection (PIP) coverage is required because Florida has a “No-Fault Law.” The PIP pays the insured’s medical bills regardless of who was at fault in the accident. This assures that anyone injured as a result of an accident can and will receive medical treatment.

Florida may require some drivers to carry full liability auto insurance coverage due to their driving history. This Financial Responsibility Law is often applied when a person has:

  • Been at fault in past accidents resulting in injury to others;
  • Excessive points against their license; and/or
  • A DUI or revocation due to serious or repeated offenses.

Car insurance mandates hold drivers accountable for their actions and affords financial protection to those who may be injured due to the actions of others.

Why do States Require Car Insurance but not Health Insurance?

The federal government cannot require that all citizens have healthcare insurance but states could, just as they do with car insurance. Despite this option, no state currently has this requirement though nine states are considering it. There are many arguments on both sides of this issue, making it politically divisive. A key argument against mandatory health insurance is that car insurance exists to protect others and medical issues don’t impact anyone but the person experiencing them. The primary argument for mandatory health insurance is that it costs less than providing care for an illness that has gone untreated due to lack of ability to pay.

The United States is the only first world country with no public healthcare system and, under the constitution, this cannot change on a federal level. Most states are hesitant to force their citizens to carry this coverage, which means that our current insurance structure will remain in place for the foreseeable future.

Managing car and health insurance needs are tricky. With auto insurance there are state minimum requirements and your health insurance coverage should reflect your anticipated needs as well as unexpected problems. Let Alliance help make sense of this process by working with you to find the right coverage and providers. Contact us so we can assure that you and your family have the protection you need at an affordable price.

Questions?We can help you! Call us at (866) 771 4715 or click contact us to the right.

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