Most car owners have only a hazy understanding of automobile insurance. They seldom see the fine print. You’ll find nothing mysterious about automobile insurance – fast reply. It is Protection. Basically, there are 2 kinds.
Automobile Liability Insurance protects from claims of others arising from the ownership, maintenance or usage of your automobile. Physical Damage Insurance protects from loss or injury to your own automobile. Most notable type of insurance are Collision, Comprehensive, Fire and Theft coverages.
Car insurance policies varied from company to company. The insurance buyer didn’t know what to expect. He thought he previously the insurance he needed-until he had 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 nation’s Bureau of Casualty and Surety Underwriters (stock companies), the Aba and the National Association of Insurance Commissioners worked out a standard automobile policy. While companies do not have to use the standard policy, most of them do, except in Texas and Massachusetts. A form of the standard policy is included here. Check it against yours to be sure that you have a standard provisions policy.
The insurance coverage section in the following paragraphs deals with the conventional provisions insurance policy for a private passenger automobile. Don’t own or drive a vehicle without insurance. Don’t touch a wheel 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’ll pay for insurance in the hundred years.
Present-day juries make whopping big verdicts. They assume every defendant is insured. If you have no insurance, you cannot make it proven to the jury. They will assume you are covered. Should a verdict be earned against you, you can lose all you own. You will 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 for one accident, just like you often hear that each dog is eligible for one bite.
Perhaps some car owners carry no insurance simply because they believe they are able to avoid accidents by careful driving. In reality, only the foolhardy go without insurance.