Auto Insurance in the US
Auto insurance is also known as vehicle insurance, car insurance or motor insurance. It is purchased for four wheelers- cars, trucks and other vehicles. It is used to protect against losses incurred because of collisions and accidents. Auto insurance covering injuries and property damage done to others is compulsory in almost all states of the US though enforcement may vary from state to state. New Hampshire State for examples does not require drivers to carry liability insurance while Virginia expects people to pay $500 fee per vehicle if they do not buy liability insurance.
If you do not buy auto insurance there is a penalty though the amount may vary from state to state. The fine is substantial, the License may be suspended and you may even be jailed in some states, according to their rules. The minimum requirement by law is that you must have third party insurance to protect third parties against the financial consequences of damage, loss or injury caused by a vehicle.
The Arizona Department of Transportation Research Project manager has recommended that the insurers issue License plates. These License plates expire at the end of the insurance coverage period and licensees have to return their plates to the insurance office and get a refund on the premiums. This rule will enable the traffic police to spot vehicles which do not have insurance as they will not have the necessary license plate.
Auto insurance can cover some or all of these items: The insured party, the insured vehicle, third parties (car and people), third party, fire and theft. There is also the No Fault Auto Insurance where coverage to persons tiding the insured vehicle is given without finding out the person who is at fault in the accident.
There are different auto insurance policies which specify the circumstances under which each item is covered. You can insure your vehicle independently against theft, fire, or accident.
You should find out all the details before buying the insurance. Before you sign the contract with the insurance company you should know exactly what you are buying. In return you have to pay a premium to the insurer. This is an amount which is fixed on consideration of several factors like age and sex of the driver, his past driving history, the age and make of the vehicle and other such things. Should a mishap occur you have to immediately inform the insurer and put in your claim. There will be an inquiry and based on the findings of the inquiry you will get the insurance money to pay for the damages to the vehicle and the people in it.