Information Online - Compulsory Auto Insurance
47 of the 50 United States, it is illegal to take a car onto the
road without auto insurance. Compulsory insurance laws protect the
public from the expenses of injuries and property damage resulting
from a car accident. The states that require auto insurance set
minimum amounts of coverage that guarantee that medical costs and
property damage caused by the insured in case an accident is judged
to be the fault of the insured. Another name for compulsory insurance
is liability insurance.
you carry compulsory insurance and are judged to be at fault in
an auto accident, your car insurance company will pay the medical
bills and lost work time and other damages for the other driver
and passengers in both his car and yours that are not immediate
blood relatives. The minimum compulsory insurance varies from state
to state, but your insurance agent will be able to tell you what
minimum amount you must carry in order to drive you car on the public
personal injury insurance, you are also required in most states
to carry property damage policies to repair or replace any damage
caused by your car. Again, the amount varies from one state to another.
are good reasons for carrying more than the minimum amount of compulsory
insurance. If the damages exceed your coverage, for instance, you'll
be liable for anything that your insurance company doesn't pay.
More importantly, there are many gaps in compulsory insurance company.
You aren't covered for theft or a fire that's not related to an
You won't recover the entire amount of the cost to repair damage
to your car caused by an uninsured vehicle.
If you were judged to be at fault in the auto accident, there is
no coverage for your injuries or damages.
Even if you're not at fault, there's no coverage for other expenses
related to your auto accident like towing.
insurance agents recommend that you carry a greater amount of insurance
and coverage other than what's strictly required by your state.
Often referred to as 'comprehensive' coverage, it will include:
Injury Protection, which will pay medical expenses and reasonable
work and living expenses for lost job time due to an accident, no
matter who was at fault.
towing and glass replacement that results from causes other than
an auto accident.
if you take out a loan to purchase your car, the bank will require
that you purchase and maintain comprehensive insurance on your vehicle
until your loan is paid off.
Reeder is the owner of eZerk,
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