Auto Insurance Law
by DIEGO GAITAN
There are laws governing everything, everywhere. And this would include your Auto insurance policy. From state to state the auto insurance laws vary. What exactly is the purpose of the law?
The driver��s community��s safety will be ensured. Before car owners can legally drive their vehicles, they are required to buy a minimum amount of bodily injury and property damage liability insurance found within the bounds of the financial responsibility laws of all states. This is to insure that people involved in an automobile accident can furnish proof of financial responsibility up to certain minimum dollar amount. To be in accordance with such laws, most drivers obtain auto liability insurance. Since accidents may end up costing a great deal more than the minimum coverage levels mandated by most states, consumer groups and the insurance industry typically recommend carrying a minimum of $100,000 in bodily injury protection per person along with $300,000 coverage per accident.
If the policyholder is found legally responsible for causing the accident, the minimum coverage mentioned earlier, including Bodily Injury Liability and Property Damage, provides benefits to pay claims against him or her. However it's wise to go beyond the minimum when it comes to auto insurance as you need to have enough liability insurance to protect yourself in case you're ever involved in a serious accident - you could be sued for a larger sum of money than you could afford which would cause a serious financial burden.
While uninsured motorist and underinsured motorist liability coverage is optional, the laws governing them along with those regulating Bodily Injury and Property Damage liability typically apply equally to both cars and motorcycles.
The insurance applies to both cars and motorcycles when special rules for motorcyclists are not specified. Additionally, most states (unless noted) require insurance companies to offer the coverage. Furthermore, a policyholder's rejection must be put into writing for documentation purposes. In many cases, state law requires that a policyholder choosing UM/UIM coverage purchase a certain minimum amount of coverage.
Lastly, the Medical Expense coverage, usually referred to as First-Party Coverage or Personal Injury Protection (PIP) is meant to cover the costs of hospital, medical, lost income and disability expenses on behalf of the policyholder is not regulated by most states.
Differences exist between states on a number of other legalities and policies. By visiting an auto insurance agent or getting information through the internet or other drivers, an auto insurance purchaser can be made well aware of these. No matter who you are, obey the law or suffer the consequences of disobedience. To learn more about auto insurance laws, visit http://www.cheapautoinsuranceplace.com where you will find everything you need to know about getting a cheap auto insurance and much more.
