- In the United States, car insurance is mandatory in every state except Virginia, New Hampshire and Wisconsin. Some states require proof of insurance before issuing a driver's license. The punishment and penalties for driving without insurance varies but usually results in substantial fines, possible jail time and the suspension of your license and registration.
- According to the National Association of Insurance Commissioners, the most common components of auto insurance coverage include "property damage liability, bodily injury liability, medical payments coverage, comprehensive coverage, collision coverage and uninsured motorist coverage." Property damage liability covers legal claims from damage to another individual's property that's caused by your vehicle. Bodily injury liability protects you from legal costs if someone is injured or killed as a result of your driving. Medical payments coverage pays a percentage of any medical bills, whether it is your medical bills or those of another person who was injured in an accident you caused.
- Comprehensive coverage insures your vehicle from theft or natural disasters, while collision coverage pays for repair costs after collisions with other cars, objects, animals or pedestrians.
Uninsured motorist coverage protects insured drivers from expenses caused by another driver who has an inadequate insurance policy. Almost all insurance companies cover any damage or liabilities caused by another person driving your car. - Full-coverage car insurance offers many additional benefits and services if you elect to have them and pay an additional fee. Some policies cover chipped windshield repairs, stereo equipment damaged in a collision and personal property damaged in accidents.
Many insurance policies also offer roadside assistance for such incidents as flat tires, dead batteries or locking the keys in your car. Some companies also waive the deductible when both people involved in a collision are insured by the same company. If a car needs repairs after a collision, most insurance companies will reimburse some or all of the cost of a rental car while your car is being repaired. - Some states, including Virginia, Wisconsin, and New Hampshire, do not require drivers to have liability insurance. According to Virginia's Department of Motor Vehicles, "every person registering an uninsured motor vehicle shall pay a fee of $500 at the time of registration. Payment of this fee does not provide the motorist with any insurance coverage. The payment merely legally allows the driver to use public roads, but the motorist is still liable for any damages.
previous post
next post