Most car owners have only a hazy familiarity with automobile insurance. They seldom browse the fine print. You’ll find nothing mysterious about car insurance – link. It is Protection. Basically, there’s two kinds.
Automobile Insurance protects you against claims of others arising out of the ownership, maintenance or utilization of your automobile. Physical Damage Insurance protects you against loss or damage to your own automobile. One of them type of insurance are Collision, Comprehensive, Fire and Theft coverages.
Auto insurance policies varied from company to company. The insurance buyer couldn’t know what to expect. He thought he had the insurance he needed-until he’d an accident. Then your fine print was magnified.
The insurance policy companies got together 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 American Bar Association and the National Association of Insurance Commissioners exercised a standard automobile policy. While companies do not have to use the standard policy, many of them do, with the exception of 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 section in this article deals with the standard provisions policy for a private passenger automobile. Don’t own or drive a car 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, just one, could ruin you financially-could cost you more than you’d pay for insurance in the hundred years.
Present-day juries make whopping big verdicts. They assume every defendant is insured. For those who have no insurance, you can’t make it proven to the jury. They’ll assume you might be covered. Should a verdict be introduced against you, you could lose everything you own. You may be forced into bankruptcy or have your income garnisheed.
Are you compelled to carry liability insurance? Technically, the reply is no. The theory is that, you are eligible to one accident, just like you often hear that all dog is eligible to one bite.
Perhaps some car owners carry no insurance simply because they believe they can avoid accidents by careful driving. In practice, only the foolhardy go without being insured.