Lawrence Auto Insurance
Lawrence, Kansas, is home to the University of Kansas and the beloved and nationally-known Kansas Jayhawks. While it's a sports-centered college town, it's also known as one of the best places in the nation to start and grow new companies.
This mix of sports and business growth is what makes Lawrence such a unique place to live for young adults, families, and entrepreneurs.
If you're planning to relocate to Lawrence either temporarily or permanently, it's important that you learn Kansas's laws. While there are some very obvious laws you must abide by, others are not so obvious. Since auto insurance laws vary by state, the amount of coverage that you currently have may not be sufficient.
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Keep reading to discover what you need to know about auto insurance laws in Lawrence, Kansas.
Is auto insurance required in the city of Lawrence?
In the city of Lawrence, and every other city in Kansas, drivers must comply with state auto insurance laws. Under the laws set by the Kansas legislature, insurance on personal cars that are registered in Kansas is mandatory.
The legislation was passed to ensure that everyone who owns a car is able to pay for the damages that they cause to someone else.
What happens if your car is registered in another state?
One thing that's unique about Lawrence is that there is a huge population of students. In fact, around 28,000 people that live in Lawrence are full-time students who have established residency somewhere else.
If you're only staying in the city until you graduate from college, you might not have a need to register your car in Kansas. If you keep your registration in another state, you'll need to follow the insurance laws in that state. It's not until you become a permanent resident of Kansas that you need an in-state license plate and in-state car insurance.
What are the auto insurance requirements in Kansas?
If you have an in-state registration or you're planning to obtain one, you must buy auto insurance from a producer that is licensed by the Kansas Department of Insurance. Insurance from a carrier in any other state will not satisfy the state's requirements. That's why you need to be diligent in transferring your policy.
As long as the coverage is sold by a licensed company, you don't have to worry about having the wrong coverage as long as you have a standard policy. That's because all carriers sell at least basic coverage to applicants.
Basic coverage for vehicle owners in Kansas consists of:
- Bodily injury liability
- Property damage liability
- Personal injury protection
- Uninsured motorist protection
Breaking Down the Basic Policy in Kansas
If you compare a basic policy in Kansas to one in another state, you'll notice that you have to comply with more laws than the average person in the other state. Because basic auto insurance still leaves you and those in your household at risk, Kansas state officials require you to protect yourself as well as third-parties.
As you're building your policy, it's nice to know not just how much you're expected to buy, but also what the coverage pays for. Each required coverage has a different purpose. Some of them pay you while others only pay for third parties.
Here's a breakdown of coverage requirements:
- Bodily injury (BI) liability – $25,000 per person and up to $50,000 per accident; BI is a form of third-party coverage that covers medical expenses that you're liable for. In order for your policy to pay, a claimant must file a suit against you. BI also pays when you're in an accident with someone from out-of-state who does not have no-fault coverage.
- Property damage (PD) liability – $10,000 per accident; PD is another form of third-party coverage that pays for vehicle repairs and property replacement when you're liable for a car accident. The coverage doesn't pay to repair your own property. There's no deductible to file a PD claim, but the claim can affect your rates in the future.
- Uninsured motorist (UM) protection – $25,000 per person and $50,000 per accident; Kansas state officials have made uninsured motorist protection (UM) mandatory for all insured drivers. UM will pay for medical bills, rehabilitation costs, and funeral costs if you're hit by an uninsured driver while driving, walking, or riding your bike.
- Personal injury protection (PIP) – $4,500 per person or higher; Kansas officials require all drivers to carry first-party coverage that pays for medical services, disability, lost income, and in-home care services. PIP provides benefits for all of these expenses. The purpose of this requirement is to reduce the number of cases that go to court. Uninsured Motorist pays first whenever there's an eligible claim.
What does it mean when people say Kansas is a No-Fault state?
Some states have tort-based systems and others have no-fault systems. Under a tort system, fault is the primary factor that's used to decide which insurer pays for bills that result from an accident. In no-fault states, personal injury claims are made against your own insurance to prevent the need for litigation.
Kansas is a no-fault state. This is why personal injury protection (PIP) is compulsory and not optional. Another thing that's unique about PIP law is that there are restrictions on lawsuits that claimants can file. Although there are restrictions, you still have the right to sue.
Is physical damage coverage required?
Physical damage coverage, which is divided in comprehensive and collision, pays for repairs that need to be made to your car. Even though it's something that you might need, it's not required in Kansas.
The only time you're contractually required to buy comprehensive and collision is when your car is financed or leased.
Do you need higher uninsured motorist protection limits?
Under state law you only need up to $50,000 in UM coverage, but you should always look at the cost to raise your limits. If you've already raised your BI and PD limits to protect yourself against a lawsuit, you have the option to raise your UM protection as well.
If you're unsure, it can help to consider the rate of uninsured drivers in Kansas. Based on the latest studies conducted by the Insurance Information Institute, the rate of uninsured drivers in Kansas is 9.4 percent. While this percent is on the lower end in the U.S., it's still a problem.
Since Lawrence has a population of 87,643, there are still around 8,500 drivers that don't have insurance. This study doesn't factor in the number of students who have out-of-state policies that can't be easily verified.
For these reasons, UM protection should be something that you consider increasing.
What is the fine for not having insurance?
If you don't have insurance or in-state coverage, you could face some serious penalties. In many cases, the cost of being caught without insurance is higher than the cost of the coverage itself.
Here are some of the consequences that you should be aware of:
- Fines ranging between $300 and $1,000
- Suspension of driver license
- Suspension of registration
- Imprisonment for up to six months
- Reinstatement fees of $100 for registration
- SR-22 proof of insurance for one year
- Fines ranging between $800 and $2,500 for a second offense
- License revocation for up to three years for multiple offenses
How does the Department of Motor Vehicles verify your insurance?
In 2009, the Electronic Motor Vehicle Financial Security Verification Task Force was formed to create a database where auto insurance could be verified in real time. Now, a system is in place where insurers must report whether or not a car has insurance. You don't need to receive a citation to face penalties.
Now's the time to find low insurance rates on a comprehensive policy that provides you with protection. If you're looking to find good rates, the best thing to do is comparison shop.
Comparison shopping can take a great deal of time when you don't use the right tools. If you want to be efficient with your time, use an online rate comparison tool and see how much you can save on auto insurance in Lawrence, Kansas.
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