Auto insurance is mandatory in all the states of United States of America. Auto Insurance is something you must have to be financially responsible for untoward mishaps on the road.You may be a good driver but all of the drivers may not be good drivers and hence auto insurance is required. Also, if you get involved in an auto accident and you don’t have auto insurance you will have to pay for the other person’s damages and injuries from out of your pocket. In general it will be a huge amount, which you cannot think of.
To think about the hit and run cases, you alone will have to bear the brunt of any loss caused. Only auto insurance can come to your rescue to meet the sustained damages. Without insurance you will end up paying from your own pocket.
Hence Auto Insurance helps us:
- To meet out the expenses on Medical Bills and other repair charges involved in accident
- To pay off the repairing cost of vehicle damages
- Protection from the underinsured/Insured: If the other driver involved in the accident does not have auto insurance or inadequate insurance to meet the loss due to damages and injury your auto insurance coverage to take care of this. Your minimum liability auto insurance can only pay for the other driver’s losses. If you have collision coverage you can be happy knowing that your auto insurance will take care of this.
- Protection from the auto related law suits: If you cause the accident and the others file a case against you, if you have the proper and enough coverage your auto insurance company will pay for the legal costs incurred.
- To safeguard your assets: The high costs of property damages and medical expenses or loss of life can run into thousands of dollars which can eat up all your savings and can land in a huge financial crisis. Choosing the appropriate coverage can protect you against such disastrous situations.
- You can avoid penalties for drivers who don't have California car insurance include driver's license suspension, cash fines and vehicle impoundment.
Coverage of Auto Insurance/Law on Auto Insurance
Buying car insurance protects you and your family, your vehicle and your financial status against any unprecedented happenings on the road. You must decide on the service provider of auto insurance and the type of coverage and the provisions of the policy before taking in a policy. For example, the State of CA has the following provisions:
- The drivers can protect themselves and belongings by purchasing bodily injury liability (BIL) and property damage liability (PDL) coverage, collision, comprehensive, personal injury protection (PIP), uninsured motorist bodily injury (UM) etc. Though uninsured property damage coverage is recommended but it is not mandatory as per law
- Auto insurance for BIL coverage should be for at least $15,000 per person and $30,000 per accident for costs associated with the injury or death of others in a wreck.
- Auto insurance must include PDL coverage for a minimum $5,000 for damage to another person's property in an accident.
TIPS on Auto Insurances
It is good to buy more coverage than is required by state law as minimum car insurance might not be enough to cover car repairs or medical bills after an accident.