A primer on the auto insurance laws

Written by kelly    Thursday, 20 November 2008

Auto insurance laws are created to protect the rights and interest of every driver and car – owner. This enables them to receive some form of benefit or compensation if ever they receive any type of injury as a result of using their car or automobile. Also, auto insurance laws require any vehicle owners to face their responsibility every time they are the one who causes injury or damage to others. All states have the same basic auto insurance laws and this auto insurance laws fall into three general categories: Financial responsibility auto insurance laws – These laws offers the security that any vehicle owner should have the minimum financial capability to pay for any form of damage or injury that may be incurred to others in the event of a crash or accident. The limits for these laws can differ for every state but the similar thing about them is that they are only enforceable once an actual car accident or traffic violation occurs. Compulsory auto insurance laws – These laws are related to the above laws because it requires individuals to have the proof of minimum financial capability the moment they try to register their car. The absence of one makes the ownership of any type of vehicle illegal in some states so this proof must be completed first to be able to drive a vehicle. No – Fault auto insurance laws – These laws on the other hand make it sure that all persons should be able to collect and receive money from their own insurance providers in case of injuries or accidents. This should be the case even regardless of who are the ones that should be held liable for the cause of the injury or crash.

Last Updated ( Thursday, 20 November 2008 )