Auto Insurance Law
The oil that keeps the gears of the society running smoothly is the law. We are all bounded by laws, and in most cases, those laws, when followed, are for our own safety and protection. And this truth also applies to your Auto Insurance. Each state in the U.S. has their own laws that govern their auto insurance industry. So what exactly does this law on auto insurance protects and what are its purposes?
Each state has a financial responsibility on its constituents and requires their car owners to have a minimum liability insurance which covers bodily injuries and damage to property before they freely drive their cars legally. If an accident occurred, the car owners will be required to accept financial responsibility up to a certain amount, or provide proof of insurance.
To effectively comply with these laws, he must buy or purchased an auto liability insurance and the recommended amount is a minimum of $100,000 for physical injury protection and $300,000 for an accident benefit.
If a person who is legally driving causes an accident, his auto liability coverage insurance can cover for bodily injuries and damaged properties. Having a minimum amount of auto insurance does not guarantee you and would likely be not enough to protect from all the expenses in case any untoward accidents occurred on the road. You may find yourself having many debts and might be imprisoned in case you don’t pay for the damage that you have done. It is therefore best purchase insurance with a larger coverage and higher limit.
Bodily Injury and Property Damage Liability insurances are for both motorcycles and cars. However, the liability is noncompulsory for those who are uninsured or underinsured motorists. Unless stated specifically only for motorcyclist the law is to be applied to both. Some states require their policy holder’s rejection by the insurance company be documented in writing. Most states, however, do not limit or control Personal Injury Protection, which is considered as Medical Expense Coverage. This coverage involves the bills to pay for the medical bills, lost income, hospital fees and other disabilities that might happen to the policy holder.
Many legalities and policies may be present in a state. In some states, if someone is found not having an insurance, their vehicle will be confiscated and impounded for three months. Not only will he lose his vehicle for a time, he will also need to pay to for the storage of the vehicle. Although this may seem harsh for many, but think about the cost that might be incurred if you are uninsured and you are the reason of the accident. You are going to pay for more than a hundred thousand dollars for all the hospital bills, damage of property and replacement of new cars.
If you want more information about policies you can talk directly to your auto insurance agent, or just ask around from some long-time known good drivers. Each law of the state should be adhered to, and no one is above the law. Make sure that you are following all the requirements that your state is giving you. It never hurts to follow rules that were carefully designed to help protect you and those around you.