One of the things that critics of Obama Care have discussed is the ability to purchase health care in a way that vehicle insurance purchases are made. The problem with this pertaining to vehicle insurance is you can make the purchase in one state while living in another, but you must purchase insurance by the vehicle insurance requirements for the state you live in.
This is something you have to look closer at. There are certain things that all vehicle insurance policies require. The difference might be in the financial liability and responsibility you incur.
Here are a few of those.
First of all you are responsible for every vehicle you drive or somebody in your family is driving. This is known as financial responsibility.
You prove you have vehicle insurance by carrying an insurance card. This proof of insurance is required if you are ever pulled over for any reason. It is also required in most states when you register for your tags and license plates.
Next let’s talk about liability insurance. This is a protection put in place in case of injury or death that results from an accident.
The minimum liability insurance will vary from one state to the next. The amount of coverage you need is based on one driver, more than one driver, and it also includes property damage.
Collision insurance is another requirement. If your vehicle is involved in a collision it is covered for physical damage resulting from the collision with another object.
For damage that goes beyond the collision damage comprehensive coverage is required. This could include additional coverage for things such as fire damage, a cracked windshield, etc.
Some people let their insurance expire or even cancel it in an attempt to save money. This is against the law. You’re required to carry a least a minimum car insurance coverage.
You may get away with not making your insurance premiums, but if you are pulled over by a policeman, or are involved in an accident. the consequences of this is usually greater than the savings.
For example you could have your vehicle impounded. It’s not cheap to go and get a vehicle out of impoundment, plus it’s a great aggravation.
A policeman can give you a ticket if the minimum vehicle insurance required for your state is not proven. An even greater risk is if you’re involved in an accident and it is your fault.
You could end up being sued and lose all of your assets if you don’t have adequate insurance to cover the damage from the accident. Again this is just not worth the risk.
Take the time to understand the vehicle insurance requirements by state looking closely at the state where you live.