Auto Insurance- Required Or Not?
Filed Under (Insurance) by Admin on 08-11-2009
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Auto Insurance is required in 48 out of the 50 States. Who knows why the other two do not have required insurance. If it is required in your state then it is wise to remember that it is a law. You must have the minimum required insurance in order to drive in that state. In most states it is required that you just have general liability coverage.
General liability coverage covers the other car or person should you cause harm while driving your vehicle. Your vehicle will not be covered at all and it will be your responsibility to cover any damages to it. If you had full coverage then all of it would be covered.
Full coverage is usually required by your finance company but it is not required by the state. Which means that once you pay your vehicle loan off, then you are free to get the minimum coverage allowed by law. Car insurance companies do not mandate what the laws are but they can provide you with insight into those laws.
If you ask an auto insurance carrier for information and statistics on liability coverage versus full coverage then you can see why it is beneficial to have full coverage insurance. Most people do not have thousands of dollars available to them to fix their vehicle should they get in an accident. It is also much easier to deal with an insurance company then a lawyer should you be caught driving without insurance.