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Automobile Insurance

What is automobile insurance?

Automobile insurance is a contract between an insurer (insurance company) and a policy holder (the insured) that helps pay for damage, bodily injury, or other financial losses due to accidents, fires, theft, vandalism, or other unexpected events.

Do each state require auto insurance?

Yes. Each state has financial responsibility laws that set minimum liability standards for vehicle operators within it's borders.

To meet these standards, a driver is required to have at least the minimum, state sanctioned, automobile liability insurance or have an alternative way to meet that responsibility, which must be approved by the state in which you are operating the vehicle.

Do I need to carry proof of insurance in my car?

Yes. If you are stopped by law enforcement personnel or if you are involved in an accident, proof of insurance is going to be required in most instances.

If you do not have proof of insurance, you will probably be ticketed, your vehicle may be impounded, and your license may be suspended

What happens if I am involved in an accident and don't have insurance?

When the vehicle you are driving is involved in an accident and you are found liable, especially if there is death involved or serious bodily injury, and you don't have insurance, penalties will be very severe and it will take a toll on you, both personally and financially, for years.

Who is responsible for providing insurance on vehicles?

Although it is the responsibility of the owner of any vehicle to have liability insurance, as the driver of the vehicle, you are personally responsible for making sure that there is insurance on that vehicle.

It is illegal for a vehicle to be operated without the minimum standards of insurance set by the vehicular codes of your state.

How much insurance do I need?

Although there is a mimimum coverage set by law, you may need more than the legal minimum. The legal minimum may not pay for all the damage suffered in an accident and you may be required to make some financial payouts from your own personal funds.

You may want to go over your insurance policy very carefully with your auto insurance agent to make sure you have the right coverage. You may want to purchase liability insurance with higher coverage than the minimum required by law.

The right automobile insurance coverage may prevent you from having serious financial consequenses if your are involved in an accident, if your vehicle is stolen, or if your are involved in some other vehicular mishap.

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