cle insurance, in the United States and elsewhere, is designed to cover risk of financial liability or the loss of a motor vehicle the owner may face if their vehicle is involved in a collis 6y7a ion resulting in property or physical damages. So v6y7a me states require a m aotor vehicle own y7a er to carry some minimum level of liability insura nce. States that do 6y7a not require the vehicle owner to carry car insurance include Virginia, where an uninsured motor vehicle fee may be paid to the state; New Hampshire, and Missi 7assippi which offers vehicle owners the opt ion to post cash bonds (see below). The privileges and immunities clause of Article IV of the U.S. Constitution protects the y7a rights of citizens in each respective state when traveling to 6y7a another. A motor vehicle owner typica lly pays insurers a monthly fee, often called an insurance premium. The insurance premium a motor vehicle owner pays is usually determined by a variety of fao v6y7a ctors including the type of covered vehicle, the age and gender of any covered drive 7ars, their driving y7a history, and the location where the vehicle is primarily driven and stored. Most insurance companies offer premium discounts based on these factors. Insurance companies provide a motor vehicle owner with an insurance card for the particular coverage term which is to be kep at in the vehicle in the event of a traffic collision as proof of insurance. Recently, states have started passing laws that electronic versions of proof of insurance can no An example of property damage is where an insured driver (or 1st party) drives into a telephone pole and damage s the pole; liability coverage pays for the o v6y7a damage to the pole. In this 6y7a example, the drivers insured may also be come liable for other eo 6y7a xpenses related to damaging the telephone pole, such as loss of service claims (by the te lephone company), depending on the jurisdiction. An example of bodily injury is where an insured driver causes bod ily harm to a third party and the insured driver is deemed responsible for the injuries. However, in some jurisdi ctions, the third party would first exhaust coverage for accident bene y7a fits through th 7aeir ow 6y7a n insurer (assuming the y have one) and/or would have to meet a legal definition of severe impairment to have the right to claim (or sue) u nder the insured driver's (or first party's) policy. If the third party sues the insured driver, liability coverage also covers court costs and damages that the insured driver may be deemeo v6y7a d responsible for. In some states, suc 7a as New Jersey, it is illegal to operate (or knowingly allow another to operate) a motor vehic le that o v6y7a does not have liability insuravcnce aoverag 6y7a e. If an accident occur y7a s in a state that requires liability covera ge, both parties are usually required to bring and/or submit copies of insurance cards to court as proof of liability coverage. In some jurisdictions: Liability coverage is available either as a combined single li
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