Vehicle insurance requirements will vary from state to state. To make sure you are properly covered you need to know what the requirements are for car insurance in your state. Here are a few things you will want to know.
1. Financial responsibility. You are responsible financially for any vehicle that you operate.
You are responsible to carry proof of your financial responsibility in every vehicle you drive. If you are pulled over by a policeman they’re going to want to see this proof of insurance.
They are going to be looking at your vehicle registration. Then they will want to see that your insurance is in effect.
2. Liability insurance. Each state has a minimum liability requirement that you must carry.
This is to protect you in the case of injury or death resulting from an accident. These will be based on one person, more than one person, and property damage.
3. Comprehensive coverage. In the event there is physical damage other than collision comprehensive coverage will cover your vehicle. This could include a cracked windshield, fire damage, and so on.
4. Collision insurance. This is defined as coverage for physical damage to your automobile resulting from contact with another inanimate object.
5. Cancelations and suspensions. You must keep the minimum amount of insurance coverage in effect. Not doing so does have consequences.
You can be ticketed if you are pulled over by a police officer. You could have your vehicle impounded.
From a financial standpoint you are personally liable for any costs resulting from an accident. More often than not this is going to cost you more money than the amount of money you save by not having vehicle insurance in effect.
You need to seriously consider how much worse those consequences could be. For example, what if you are in an accident that is your fault and you total the other person’s car?
Let’s take the worst case scenario. What if that automobile is a $50,000 Mercedes? Could you really afford to replace that out of your pocket?
Vehicle insurance is in effect to protect both the driver as well as other drivers on the road. As the cost of automobile repairs, and medical expenses has gone up over the years people can no longer afford to insure themselves.
By knowing what the minimum vehicle insurance requirements are, you can get an affordable quote and do the right thing by being insured. This is simply a risk that is not worth taking.