Auto Insurance Articles

It is a well known fact that you will face very severe penalties if you drive without car insurance if you get pulled over.  You could be subjected to large fines, receive points on your driving record, and might even face jail time.  The penalties for being under insured or uninsured driving vary from state to state and so does the type and amount of insurance that you are required to carry by law.  To ensure that you aren’t penalized for noting have the proper insurance that is required by your state’s laws, it is very important that you understand exactly what your law requires in terms of the level of minimum insurance that you need to have on your car.  If you aren’t sure what it is or you think the state law may have changed since you last took a driver’s test, there are several ways that make it easy for you to find out.

One easy way to find out what level of insurance is required by law in the state where you live is to look it up online.  There are quite a few websites on the internet that provide this type of information.  You can find these sites fairly easily by just doing a search in your favorite search engine.  Be sure that you are able to verify when the site was last updated.  You definitely don’t want to rely on information that it posted on a site that has not been updated in several years.  Laws change all the time, and sites that don’t update on a frequent basis may not have the latest legal information.

Another good source for insurance requirements is the local office for the Department of Motor Vehicles.  The DMV is responsible for the licensing of drivers based on current legal standards.  Therefore, they should have the latest information on state laws regarding car insurance.  You can ask DMV personnel for information, check a driver’s test prep guide, or check your state’s DMV website.  DMV offices get very busy at certain times of the day, so be sure to go in early in the morning or maybe mid-afternoon to avoid buys times.

Another place to find reliable information is through your local police department.  The police department should have the information because they have to enforce state laws.  You can contact them by phone or visit in person.  If you call use the regular number and not an emergency service number.

A final way is to ask an insurance agent who works with a reputable insurance company.  Most insurance companies will not sell auto coverage that is less than what is required by state law.  Online insurance providers also usually have state requirements and minimums programmed in, so that when you are looking to buy insurance the system will pull up the current state requirements.  When you are ready to buy auto insurance just be sure that you don’t wind up purchasing extra coverage that you really don’t need if you are looking to get minimum coverage to meet your legal obligations.

There is a minimum requirement for auto insurance in the United States as well as Canada.  The specific requirements vary depending on the state or province you live in, but all of them do have some sort of legal minimum amount of insurance that each driver must have on their vehicles.  Failing to have auto insurance could potentially result in losing your driver’s license as well as your registration, and you could also be given a big fine or have to serve jail time.

You may have some questions about auto insurance that you would like to have answered before you drive.  The first thing you need to do is find out what the minimum amount of insurance is that your state or province legally requires and the minimum covers.  There is a good chance that the legal minimum of insurance that is required won’t cover all that much or cover you for incidents.  When it comes to auto insurance, you should buy what you can afford.  Your insurance agent should be able to help you figure this out.  Before you get in touch with your insurance agent, there is some basic information that you will want to have first.

You need to have a good understanding of what other types of coverage are available to you, along with the cost and what you will be protecting.

Usually the minimum legal requirement is property damage and personal liability.  Some states also require you to have un-insured/under-insured coverage in the event that you become involved in an accident where the other driver does not have insurance.  Once you find out what the local state minimum requirement is, you will need to know what it covers.  In some states you may be required to have $20,000 property damage which may not cover the entire cost of your vehicle if it’s a new car.  In addition, some state minimums on personal liability really isn’t sufficient for covering any real injuries that may occur as a result of a collision.

Personal liability, or bodily injury liability, covers deaths and bodily injuries where you are found at fault.  Claims against your personal liability insurance may go to pay for loss of income, medical bills, or pain and suffering.

Property damage or comprehensive coverage provides coverage for your auto and in some cases other vehicles for damages that occurred due to an incident that was not a collision.  Theft, fire, impacts with animals, and acts of God are damages that are normally covered with comprehensive insurance.  There is also usually a deductible that needs to be paid before your claim will be processed.  You can chose different deductible amounts when you take out an insurance policy.

Collision insurance covers your vehicle when you are in a collision that involves another vehicle or other type of object.  There is a deductible that must be paid for this as well, which you can chose when you get your insurance policy.

Un-insured/under-insured auto insurance covers you as well as your passengers and your vehicle if you are in an accident whether the other driver is at fault but does not have insurance or the insurance does not adequately cover all of your losses.  Many states require this type of insurance.

It’s a very good idea to obtain several insurance quotes before making your final decision on your insurance company and policy.  Make sure to research all your different options and make sure that you as well as your auto have adequate coverage.