What kind of auto insurance do states require?
Mandatory auto insurance laws are something that many drivers have grown accustomed to. While there are a number of different types of policies available, there are some states which require a certain level of coverage before you can legally drive a vehicle. These laws can vary from state to state and can be extremely confusing to those who are not familiar with them. In fact, many states have very specific requirements in regards to the type of coverage that must be carried by each driver. It is vital that you understand what the state law requires for your own protection.
The first type of mandatory auto insurance states is that of liability coverage. This coverage protects you from paying for damages that you cause in a wreck. This includes damage to another vehicle or person as a result of a wreck that you cause. The minimum amount of coverage that you must carry in most states is the more money that you pay towards the repairs to your vehicle, the less your liability will be. This makes liability coverage one of the more affordable forms of auto insurance, especially when compared to comprehensive coverage.
Comprehensive insurance coverage, on the other hand, is where you will need to take out additional insurance beyond just liability coverage. This type of coverage typically pays for damages to your car that are greater than the amount of liability coverage you have. While this form of insurance is more expensive, it is often required by states. Some examples of comprehensive coverage include theft, vandalism, or even an accident that causes you to become a pedestrian.
Liability auto insurance states generally require that you carry uninsured motorist protection. This type of coverage protects you in the event that you are in an accident with someone who is underinsured or uninsured. This means that if you are in an accident with someone who does not have sufficient coverage to pay for the damages that you have caused, you may be left with substantial out-of-pocket expenses. Without this liability protection, you could find yourself paying thousands of dollars in bills that you are not responsible for.
Before you purchase auto liability insurance, you should make sure that you are fully aware of the mandatory auto insurance states that you must follow. In most cases, these laws change from state to state, so it is important to understand what is required in your area. If you have never purchased insurance before, or if you do not know much about how insurance works, consulting with an insurance agent or your state’s attorney general can be a good idea. They can help you understand what types of policies you will be required to carry and what you will have to do to be properly insured.
Another thing that you should know before purchasing insurance is the types of coverage that are mandatory for you to carry. These coverage vary from state to state, but some of the most common include collision, comprehensive, and uninsured/underinsured motorist coverage. Carrying more than just the bare minimum coverage that is required by your state can help to protect you financially. The problem is that many drivers purchase insurance without fully understanding what kind of policies they actually need. If you are involved in an accident, you may not have enough coverage to repair or replace your car.
If you own a vehicle, you will probably also need to carry medical payments coverage. This type of insurance protects you if you get into an accident that costs you more than the vehicle is worth. This type of coverage varies from state to state, so you will want to check with your local insurance agents to find out what the requirements are where you live. Most states require you to carry liability insurance, which is the cheapest policy that you can buy. Some states require you to carry uninsured motorist coverage, which is also very cheap. If you are at fault in a collision, the other driver may also be covered by this type of insurance.
No one likes to drive without insurance, but it is a necessity. You should shop around and compare rates before buying a policy. When you are involved in an accident and you have no insurance, it can be very expensive to fix or replace your vehicle. You may want to consider the difference between mandatory auto insurance and supplemental insurance to save money on premiums.