Automobile insurance is intended for protecting the motorist’s health, vehicle and damages caused by a due to an accident. It is mandatory to carry a valid automobile insurance to drive a vehicle in the US. Automobile insurance rules are state specific and they differ from state to state. A few rules may apply to all the states and the common thread is that if you are found driving without insurance, you are liable for punishment under the law.
All the states impose penalty for not carrying auto insurance but the amounts vary from state to state. It may be a substantial fine, suspension of driver’s license or vehicle registration or imprisonment in some states. In North Carolina, the driver should obtain liability insurance before applying for a driver’s license.
Most of the insurance companies may not provide auto insurance to the drivers who have not insured their vehicle.
In most of the states auto insurance to cover liability for personal injury and property damage is made compulsory. The minimum amount of insurance differs from state to state which is generally 50/100/25 which is $50,000 for a person injured in the accident, $100,000 for all the parties injured, and $300,000 for all the causalities and $100,000 for damage of properties.
A good driving record can help you get lower rates on your automobile insurance. You should select a policy that suits your circumstances and needs. If you have health insurance coverage there is no need to buy insurance for protection against personal injury. If your vehicle is very old and does not have significant value, you do not need comprehensive or collision insurance. Understanding the exclusions and the deductibles correctly will help you in choosing the best auto insurance policy. The extent of coverage you require and the deductible you are willing to pay are directly related to the cost of your auto insurance.
Automobile insurance is of many types such as basic, comprehensive, collision, bodily injury, property damage, personal injury protection, emergency roadside assistance, uninsured motorist coverage, auto gas replacement and rental car reimbursement. Property includes any public property that is damaged in an accident. Basic coverage gives you protection against bodily injury or property damage caused to the other party involved in the accident. Comprehensive insurance provides coverage against unforeseen happenings such as theft, flood, quake or vandalism other than accidents. Collision insurance provides coverage against damage to the vehicle due to collision.
Special discounts can be availed on auto insurance if you are a serving or retired military personnel, or senior citizen who has attended defensive driving classes, a student with top scores etc. Members of an auto club need not pay any premium for emergency roadside assistance. Discounts are also available for installing anti-theft devices such as air bags, alarms and more. You can also get a special discount on your insurance premium for staying with the same insurance company for many years. If you insure multiple vehicles with the same insurer or opt for a group insurance you can get a lower rate. Women are considered safe drivers and therefore get lower rates of premiums on auto insurance.
People who drive while using their cell phones have been found to be most likely to be involved in automobile accidents. Accidents result in higher insurance rates. Many states have enacted special laws restricting the use of cell phone. The newly licensed drivers have higher premiums on their auto insurance and adhering to the rules can help them get reduced rates on their auto insurance premiums. Having too many tickets on your driving record can even result in your auto insurance being cancelled by the insurer or non-renewal.