Most motorists have only a hazy knowledge of automobile insurance. They seldom read the fine print. There is nothing mysterious about auto insurance – his response. It is Protection. Basically, there are 2 kinds.
Automobile Liability Insurance protects you from claims of others arising out of the ownership, maintenance or use of your automobile. Physical Damage Insurance protects you from loss or harm to your own automobile. Most notable type of insurance are Collision, Comprehensive, Fire and Theft coverages.
Car insurance policies varied from business to business. The insurance buyer didn’t know what to expect. He thought he had the insurance he needed-until he previously an accident. Then the fine print was magnified.
The insurance companies met up and agreed that automobile policies should contain standard provisions. The American Mutual Alliance (mutual companies), The National 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, most of them do, with the exception of Texas and Massachusetts. A type of the standard policy is roofed here. Check it against yours to be sure that you have a standard provisions policy.
The insurance coverage section in this post deals with the standard provisions insurance policy for a private passenger automobile. Don’t own or drive a vehicle without insurance. Don’t touch one of the wheels or drive an inch without it.
Don’t say you can’t afford it. One accident, only one, could ruin you financially-could set you back more than you would pay for insurance in the hundred years.
Present-day juries bring in whopping big verdicts. They assume every defendant is insured. For those who have no insurance, you cannot make it recognized to the jury. They are going to assume you’re covered. Should a verdict be brought in against you, you could lose all you own. You may be forced out of business or have your income garnisheed.
Are you compelled to hold liability insurance? Technically, the answer is no. In theory, you are eligible to one accident, just like you often hear that every dog is eligible to one bite.
Perhaps some car owners carry no insurance since they believe they are able to avoid accidents by careful driving. In practice, only the foolhardy go without being insured.