Most drivers have only a hazy understanding of automobile insurance. They seldom see the fine print. There’s nothing mysterious about auto insurance – here are the findings. It is Protection. Basically, there are two 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 against loss or damage to your own automobile. Most notable 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 had the insurance he needed-until he had an accident. Then your fine print was magnified.
The insurance coverage 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 exercised a standard automobile policy. While companies don’t need to use the standard policy, many of them do, with the exception of Texas and Massachusetts. A type of the standard policy is roofed here. Check it against yours to make certain that you have a standard provisions policy.
The insurance section in this article deals with the conventional provisions policy for a private passenger automobile. Don’t own or drive a car without liability insurance. Don’t touch a wheel or drive one inch without it.
Don’t say you can not afford it. One accident, only one, could ruin you financially-could cost you more than you’d pay for insurance inside a 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 will assume you might be covered. Should a verdict be brought in against you, you might lose whatever you own. You will be forced out of business or have your wages garnisheed.
Are you compelled to carry liability insurance? Technically, the reply is no. In theory, you are eligible for one accident, just like you often hear that all dog is eligible for one bite.
Perhaps some motorists carry no insurance simply because they believe they could avoid accidents by careful driving. Used, only the foolhardy go without insurance.