Auto insurance (Also known as car insurance, Vehicle insurance, or motor insurance) is insurance you purchase for your car/truck/bike and other vehicles. Auto insurance provides you with a means of protection against possible damages/losses incurred because of traffic-related accidents, as well as insurance against lawsuits and other liabilities which usually follow in said vehicular accidents.
Vehicle insurance usually covers some, if not all of these: Medical payments for the insured party: Physical damage on the insured vehicle; Third parties like vehicles and people, property damage and bodily injury;
Third party, fire and theft; and No Fault Auto Insurance, or Personal injury protection. This pays for damages sustained by the insured vehicle and its passenger/s regardless of fault.
The circumstances under which any of these cover points fall are specified by different insurance policies. For instance, a vehicle can avail of protection from theft, accident damage or fire damage independently, with each case having a separate insurance.
Is auto insurance available for me?
Yes. Most states and counties require auto insurance for all drivers, and risk plans have been provided to assure coverage in the event that an individual is unable to find an insurance company which will provide him with adequate protection.
Am I required to get Insurance for my vehicle?
Yes. The minimum requirement by law is third party insurance to protect said parties against the financial consequences of loss, damage and/or injury caused by a vehicle. Given that you already have a driver’s license (?) You may already know that some countries/states require some form of liability insurance even before an actual driver’s license can be issued. It is a requirement in many states/countries to have Auto insurance covering various liabilities for injuries and/or property damage done to other parties. Various requirements with regards to auto insurance and its policies are provided for in every state. Some of these states actually require annual fees for each vehicle which is not insured against liabilities. Violation of these provisions means substantial penalties which also vary from state to state, like fines, suspension or outright revocation (even Jail time, for outstanding cases) of your driver’s license.
Now that you have your very own car, you will need to know your responsibilities as a driver and how you can protect yourself, your car and others in the case of vehicular accidents or other traffic-related incidents.