There are many questions that people ask in regard to auto insurance companies, and one of the reasons is that the laws are so intricate, and they vary state-to-state. However, there is one constant on the law books of each state, and that is that you must have at least a minimum of insurance coverage if you are going to drive a car, or any other vehicle in any state in America. The minimum requirement also varies from state to state. For instance, in California, the minimum auto insurance required to have is liability. If you drive your car into Nevada, and their minimum requirement is different, then you will automatically assume Nevada’s minimum requirement.
People are often confused by the numbers they find regarding the minimum coverage, so an explanation of that will come in handy. Take California as an example again. California law states that their minimum insurance requirement is 15/30/5. These three numbers show how much the auto insurance companies are going to pay in the event of an accident. The 15 refers to the maximum amount the first two people injured in an accident would receive, in this case, 15, 000 thousand dollars. The 30 means that it is for a maximum of 30,000 thousand dollars for two people injured. The final number, 5, indicates the maximum amount of property damage that will be covered in each accident. In this case, it is 5,000 dollars. If an accident has injuries of more than three people, then most likely the people who would get paid would be the first two who file. Alaska has a 50/100/25, Nevada, a 15/30/10, and so on.
Many people consider paying auto insurance too harsh a financial burden to bear, and they try to get by without paying it. However, it is important to know the consequences of not being insured. If you get a ticket while driving uninsured it is possible you may have to just show up in court with proof of insurance. It is also possible that the police officer could choose to have your car impounded right then and there. Furthermore, you could lose your license, and in some cases even do jail time. You would not be able to get your car back from impound until you have proof of insurance, and impound costs can be in the hundreds of dollars per day. Should you be involved in an accident where you are at fault and you do not have insurance you can expect all of these things to happen to you, plus a probable lawsuit can be filed against you. In any case, even if you do not get into an accident while driving without insurance, the DMV will find out that you are uninsured due to reports it receives from the auto insurance companies. When the DMV finds out that you do not have insurance, they will notify you by mail that you have one month to buy auto insurance, or you will have your vehicle registration suspended.
There are ways you can get affordable insurance. Today there are so many companies competing for your business, the prices have come down to earth for many people who could not previously afford it. Even if you think you have decent rates, there are companies out there who can give you an even better deal than the one you currently have. Of course, if you have a good driving record that helps, and if you have a fairly conservative vehicle and do not put a lot of miles on it, that brings down the price as well. If you can honestly say you walk to work, that will lower your rates, as will installing safety equipment on your vehicle. This shows the auto insurance companies that you take safety seriously, and are not as high a risk as other drivers may be. Even owning a home can bring down the rate of auto insurance.
Although it is quite affordable to get the minimum coverage these days, you may want to think about adding to your coverage, or even getting maximum coverage. This can help cover you if a driver without insurance is at fault in an accident where your car is damaged. You can even be covered if you are driving the car of somebody else. Even when you rent a car you can be automatically covered by your own policy, or if another person is driving your car. There are many advantages to having maximum coverage, and it will be worth your time to explore all of your options.
No Fault insurance is a topic that garners many questions, and much confusion. A clear explanation of no fault auto insurance should clear all of that up. The reason for the confusion is that there really is not a No Fault auto insurance policy in the United States. In fact, there is some consideration to begin using the term, First Party Medical instead, to clear up the confusion. The concise definition of No Fault insurance is an insurance that covers a stated risk in the event of a covered loss no matter who was at fault. Many people have taken this to mean that they can get off totally free from liability no matter who caused the accident, if they have this coverage, which is just not true. Many states have begun to carry a version of this that they call No Fault Coverage, which is a bit more accurate. This only covers first party medical coverage for injuries sustained during an accident, thus the call for the name change to First Party Medical.
The auto insurance companies around the country employ a great deal of informed professionals who are eager not only for your business, but to help you, as well. They want to give you the best coverage for the best price, and they will be standing by, on your side, the minute you need them. There is no reason to feel intimidated about visiting one of these friendly, knowledgeable people. The only worry you should have should be as a result of not visiting them.
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