In 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.
If 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
roads.
Besides 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.
There 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.
1. You aren't covered for theft
or a fire that's not related
to an auto accident.
2. You won't recover the entire
amount of the cost to repair
damage to your car caused by
an uninsured vehicle.
3. If you were judged to be
at fault in the auto accident,
there is no coverage for your
injuries or damages.
4. Even if you're not at fault,
there's no coverage for other
expenses related to your auto
accident like towing.
Most 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:
Personal 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.
Travel, towing and glass replacement
that results from causes other
than an auto accident.
Usually, 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.
To view our list of recommended
companies for auto insurance,
visit: Recommended Auto Insurance
Companies.
Carrie Reeder is the owner
of eZerk, an informational website,
with articles and the latest
news about various topics.
