Most drivers have only a hazy familiarity with automobile insurance. They seldom read the fine print. You’ll find nothing mysterious about automobile insurance – here. It is Protection. Basically, there’s two kinds.
Automobile Liability Insurance protects you against claims of others arising out of the ownership, maintenance or usage of your automobile. Physical Damage Insurance protects you against loss or damage to your own automobile. One of them type of insurance are Collision, Comprehensive, Fire and Theft coverages.
Car insurance policies varied from one company to another. The insurance buyer didn’t know what to expect. He thought he previously the insurance he needed-until he had an accident. Then your fine print was magnified.
The insurance policy companies met up 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 American Bar Association and the National Association of Insurance Commissioners resolved a standard automobile policy. While companies don’t have to use the standard policy, many of them do, with the exception of Texas and Massachusetts. A kind of the standard policy is roofed here. Check it against yours to ensure that you have a standard provisions policy.
The insurance coverage section in this article deals with the standard provisions plan for a private passenger automobile. Don’t own or drive an automobile without liability insurance. Don’t touch one of the wheels or drive an inch without it.
Don’t say you can’t afford it. One accident, just one, could ruin you financially-could cost you more than you would pay for insurance in the hundred years.
Present-day juries make whopping big verdicts. They assume every defendant is insured. When you have no insurance, you cannot make it known to the jury. They’ll assume you are covered. Should a verdict be introduced against you, you can lose everything you own. You could be forced out of business or have your income garnisheed.
Are you compelled to transport liability insurance? Technically, the answer is no. The theory is that, you are eligible to one accident, just like you often hear that all dog is eligible for one bite.
Perhaps some car owners carry no insurance because they believe they could avoid accidents by careful driving. Used, only the foolhardy go not insured.