Motor Vehicle Insurance is a must for car owners and motorists. It is a basic fact in driving. In the United States, you will never be able to drive freely, unless you have your insurance policy papers with you. In a number of states, driving without vehicle insurance is tantamount to fines, penalties, and even getting your driver’s license suspended.
Indeed, in the US, State laws take auto insurance very seriously. Car insurance policies that take care of expenses and property damages are mandatory in a number of states. The only difference is that they vary on the required levels of coverage. For example, in the state of Washington, minimum required coverage includes only bodily injury liability ($25,000 per person and up to $50,000 per accident) and property damage liability ($10,000 minimum limit). On the other hand, New York State has a more comprehensive coverage requirement. Motor vehicle insurance in New York requires coverage for bodily insurance liability, personal injury protection, uninsured/underinsured motorist bodily injury, and property damage liability. In Virginia, certain residents are allowed to not buy auto insurance or coverage, but they need to pay $500 every year. There are states that allow motorists to drive in public roads without insurance policies with them, and penalty does vary from state to state.
Car owners are protected with different types of coverage levels depending on what they purchased. Usually, to save on money, some car owners purchase only the bare minimum as required by the state. The most common of all is third party insurance – coverage that will protect third parties from financial burdens of an injury or any damages caused by an insured vehicle.
Insuring a vehicle is an important phase in the life of a car owner. In getting Motor vehicle insurance, a lot of money is spent for policy papers and insurance premiums. Insurance companies have their own ways and basis for computing premium charges. This is why it is always advised to negotiate with more than one insurance agency; just to be sure you are getting the best premium rate. In computing for premium rates, agencies use a number of factors such as age, gender, vehicle classification, marital status, how far the distance that has been driven, and many more.
In order to get the best deals, motorists are advised to deal with more than one insurance agent or company. Second, drivers must do some reading. Finding out how companies charge premium rates will educate drivers on what they can do so save up on motor vehicle insurance.