Coverage Options In States That Do Not Require Auto Insurance
If your state does not require auto insurance, you should still obtain it. Whether or not your state insurance law says that you need it or not, it makes good business sense. If you are in an accident and it ends up being costly, do you have the funds to pay for it from your own pocket? Each time you drive without car insurance, you place yourself and others at risk. You can get auto insurance quotes online or through a local insurance agent. They will advise you on various prices for your needs.
There are three specific types of car insurance. These are comprehensive, collision and liability. Each of these allows you to pay a small premium up-front, on a monthly, bi-annual or annual basis, in the event of an accident or damage to the vehicle. This will provide coverage to you at a small fee, whether you were at fault or not.
Liability insurance provides coverage for body or property damage. If there are other passengers in your vehicle, or if the driver or passengers in the other car in the accident were hurt, liability insurance will cover the medical expenses that are involved. The maximum amount that it will pay depends on the total value that you own. If a vehicle also caused damage to real estate property, then liability insurance covers the cost for this as well.
Collision insurance will cover damage if a vehicle is involved in an accident. If the cost to fix the automobile is more than the value of the car, or if the car is beyond repair, payment will be made for the fair market value of the vehicle. If you purchase a car with a loan, the title holder will require that you obtain collision insurance until the car is paid in full.
Comprehensive coverage provides payment if the car incurred damage that did not occur due to an accident. Vandalism, theft and weather damage are all cases that might entail the payout of this type of insurance. Make sure to understand the specific rules of any auto insurance quotes that you receive because after you are in an accident, it will be too late to change.
State insurance law will require a minimum amount that must be obtained before they will allow you to legally drive your vehicle. If you frequent other states, you will need to have some proof of insurance as the police regularly conduct road blocks to check for those drivers with no proof of insurance. If caught without insurance, you might get a ticket, fines and possibly even jail time.