Law of most states requires that specific kinds of insurance are required to register and operate a motor vehicle. The minimum policy coverage required differs with each state. However, the minimum insurance coverage requirement of the state may not be sufficient for protecting your assets and hence you have to purchase adequate insurance coverage in your own interest.
In a tort it will be determined which driver as at fault in the case of an accident and who will pay for damages and injuries of the vehicle occupants. Some other states have adopted and implemented the ‘No fault auto insurance’ model to protect all parties that are involved in a vehicle accident.
The no fault plan started in the year 1973 to protect the insured automobile driver and the insurance company. This plan has been adopted by many states because of its nature to protect everyone regardless of fault. Policy holders and their vehicles are totally taken care of by the insurance company. According to the provisions of no fault auto insurance, if you live in a no fault state and meet with a car accident damaging another person’s car and property, you are still liable to pay for the damages caused to the other vehicle and property. No-fault auto insurance cannot be misunderstood to be physical damage insurance. It doe not pay for injury related issues like pain and suffering and also is not a substitute for uninsured or underinsured motorist coverage.
For those who live in no fault states it is necessary to have a Personal Injury Policy to get protection against uninsured drivers in case of an accident. Sometimes the driver who is at fault may not have adequate insurance coverage. This is the reason many states require all motorists to have a PIP insurance policy to cover medical expenses due to bodily injury. In the no fault states the insurance company will pay for expenses caused by injury irrespective of who is at fault. PIP policy also for compensation for loss of income up to 3 years and hence very beneficial. Personal Injury Policy is one type of no fault auto insurance that is made mandatory in no fault states. In most states comprehensive and collision coverage is optional but it is a good idea to have them to protect your vehicle. Though it is a voluntary insurance it is an absolute necessity if you have a loan on your vehicle. The loan provider also makes it mandatory to obtain this coverage to protect against loss if the damaged vehicle’s condition is beyond repair.
So when you are involved in an accident make sure to present the proof of your auto insurance to the law enforcement officer. The law requires that every driver to have appropriate auto insurance and should provide proof of it whenever necessary.