Most drivers have only a hazy knowledge of automobile insurance. They seldom browse the fine print. There is nothing mysterious about auto insurance – great post to read. It is Protection. Basically, there are two kinds.
Automobile Liability Insurance protects you against claims of others arising from the ownership, maintenance or usage of your automobile. Physical Damage Insurance protects from loss or harm to your own automobile. Included in this type of insurance are Collision, Comprehensive, Fire and Theft coverages.
Car insurance policies varied from company to company. The insurance buyer couldn’t know what to expect. He thought he’d the insurance he needed-until he previously an accident. Then the fine print was magnified.
The insurance policy companies got together and agreed that automobile policies should contain standard provisions. The American Mutual Alliance (mutual companies), The nation’s Bureau of Casualty and Surety Underwriters (stock companies), the Aba and the National Association of Insurance Commissioners resolved a standard automobile policy. While companies do not have to use the standard policy, a lot of them do, with the exception of Texas and Massachusetts. A form of the standard policy is roofed here. Check it against yours to ensure that you have a standard provisions policy.
The insurance policy section in the following paragraphs deals with the typical provisions plan for a private passenger automobile. Don’t own or drive a vehicle without insurance. Don’t touch one of the wheels or drive one inch without it.
Don’t say you can’t afford it. One accident, just one single, could ruin you financially-could run you more than you would pay for insurance inside a hundred years.
Present-day juries generate whopping big verdicts. They assume every defendant is insured. If you have no insurance, you can not make it proven to the jury. They’ll assume you’re covered. Should a verdict be earned against you, you can lose whatever you own. You could be forced out of business or have your wages garnisheed.
Are you compelled to hold liability insurance? Technically, the answer is no. In theory, you are eligible for one accident, just as you often hear that all dog is entitled to one bite.
Perhaps some car owners carry no insurance simply because they believe they could avoid accidents by careful driving. In practice, only the foolhardy go not insured.