Auto insurance varies from state to state. In some states in the U.S. there is no mandate requiring the motorists to possess auto insurance of any kind. In states like Mississippi, Iowa and Alabama there are no laws that necessitate people to take up auto insurance but they have to post a cash deposit or bond in case of any damages occurring during an accident. There are financial responsibility laws in place for these states. However if you are residing in a state where it is compulsory to have auto insurance you will need to have some proof of it at all times in your car. You should be able to present it to an officer of law upon request and if you default or have an expired insurance then you may have to compensate financially or otherwise. Let’s look at some basic types of insurance you may need to have.
This is one of the basic categories in insurance and it includes any liabilities that may arise from damage to property, damage to someone else, or even some other vehicle. Having liability insurance is a compulsory requirement in many states but how much of liability insurance is required is defined by a minimum limit, it does not automatically mean complete cover is required in the category. The limits set by the states may not however be in many cases enough in the event of a serious accident. There are also responsibility limits in case of death or injury to a person and excessive property damage in the event of a larger mishap occurring.
In the event of things being out of hand in an accident you could end up with a liability suit that can tally up to a huge amount. By paying a small amount as extra premium you could protect yourself in the event of things going wrong. Lawsuits can charge exorbitant amounts and personal assets may have to be sold to pay for the damages if you do not have adequate coverage.
If in case of a serious accident it can be proven that you are not at fault through an eyewitness or prosecution you can get a no faults discount as well on the insurance charges. A no fault insurance protection law is present in over 25 states and it allows people to claim for personal injury happening from your own insurance company instead of going to court to prove that you were not at fault. In states where the no fault law is not there the victim tries to prove that the other party was at fault for the accident occurring.
In case of further protection in the event of being in an accident with a motorist who is not insured, you can even take out an insurance called uninsured motorist insurance that will guarantee cover to you whether you are driving or walking. In case you have collision insurance you need not worry about this uninsured motorist insurance. In many states as insurance is not compulsory or there are small fines charged people tend to be unbothered about buying insurance at high rates of premium. However the charges you are liable to pay at the end of it when the accident has occurred will be sky high compared to the premium amount you could have paid to be insured.
