While auto insurance coverage as such does not change and remains pretty much the same in every state, what actually changes is the minimum coverage prescribed in each state. Each state has some mandatory coverage that every motorist is supposed to carry if he/she has to drive around legally in Wyoming. Although, the levels of coverage vary from one state to another, motorists are free to take extra coverage after they avail the minimum prescribed limits in their state.
The mandatory coverage in auto insurance is essentially meant to offer some protection for you as well as the members of your family, and also to ensure the safety of the others on the road. The premiums you pay will entirely depend on a lot of other factors such as the deductibles for instance. If your deductibles are higher the premiums that you would be paying will be much lesser. However, if the deductibles are lower the premiums will shoot up.
There are six major areas of liability that you need to understand in auto insurance. They are damage to property, bodily injury, personal injury protection, comprehensive, collision, underinsured, and uninsured coverage. Before you choose to purchase a policy it is important to understand each type of coverage, the pros and cons of choosing one over the other.
Although, the insurance laws are federally governed, it is the Insurance Commissioner of each state who gets to decide the coverage that is to be made mandatory in their individual states. Hence, all motorists will have to adhere to that and carry the minimum prescribed by the state. In some states they allow motorists to prove financial responsibility through various means instead of going through just the auto insurance alone and Wyoming is also one of them. So, instead of purchasing an auto insurance policy through a licensed auto insurance carrier, you may secure a bond from a surety company or alternatively deposit a certain sum of money with the state treasurer.
However, all these are applicable at the lower end and chances are that you might want to consider taking higher levels of auto insurance or additional coverage apart from the minimum coverage that is mandatory. The minimum levels, which is the mandatory level in every state represents the highest sum that your insurance provider would be expected to pay for property damages and towards medical costs for every accident.
If you have hit a car and caused bodily injury, then the insurance company will pay the bodily injury liability as well as loss of wages for the victim, but it does not cover the medical costs that you may incur. However, the PIP or personal injury protection is something that is helpful in such cases as it will cover the medical costs if you were involved or if any of your family members were involved in the accident. If there has been damage to property the property damage coverage will take care of the repair and/or replacement costs if the accident was caused by you.
You can get away by taking the minimum prescribed by the state and you may also be able to avoid the additional coverage. However, if you have purchased the vehicle on finance and if you still owe some money on it, you will be made to carry comprehensive as well as collision cover. The lenders will not allow you to take just the minimum coverage as they are extremely concerned about their investments. It is better for you to shop around and get these two additional covers in case you owe money on the vehicle. Otherwise, if the lenders find out that you have no proof of insurance, they will find an insurance carrier and purchase the extra coverage. This will be billed to you and this would be over and above your monthly repayment. More importantly, these lenders will not bother to shop around for the best rates. They will simply take whatever is given to them. Hence, it is best that you shop around and purchase a policy that suits your requirement.
If there have been damages caused to your vehicle due to other reasons other than being involved in an accident, then you have the comprehensive cover to protect you. If someone tries to break in or if your car gets damaged in floods, or if your vehicle were to get stolen, the comprehensive cover will take care of everything. Year after year weather related damages are huge and it makes a lot of sense for people who live in these areas to take the comprehensive coverage and avoid facing huge losses.
There are some states that have the no-fault laws where medical costs and loss in wages are covered regardless of who was at fault. In almost all states underinsured and uninsured motorist coverage is not mandatory. Some states insist that you check and initial that you wish to reject these forms of coverage.
In case your vehicle is hit by an uninsured motorist, you will get the insurance coverage and the same holds good if you are hit by an underinsuredmotorist who cannot afford to pay for the medical costs. Under such circumstances where the policyholder does not have adequate coverage it is termed as underinsured and the company will pay for the medical costs. Even hit and run cases come under uninsured coverage.
Auto insurance is quite a tricky thing and since it is so expensive, it is imperative that you fully understand each and every aspect of auto insurance before you decide to purchase a policy. It is important to understand the basics of auto insurance prior to applying for a quote. You must be aware of the state laws before applying for an online quote. The information you provide must be accurate, otherwise the quotes you get will not be accurate. Shopping online will get you some of the best quotes and that is the easiest way to get the best deal. However, if you are not sure about the coverage or the levels of coverage you must take then consult a licensed insurance agent or the company directly to avail further details.