Car insurance Buying Guide for Consumers

Most motorists have only a hazy knowledge of automobile insurance. They seldom read the fine print. There’s nothing mysterious about auto insurance – she said. It is Protection. Basically, there’s two kinds.

Automobile Liability Insurance protects you against claims of others arising out of the ownership, maintenance or usage of your automobile. Physical Damage Insurance protects you against loss or injury to your own automobile. One of them type of insurance are Collision, Comprehensive, Fire and Theft coverages.

Car insurance policies varied from business to business. The insurance buyer never knew what to expect. He thought he previously the insurance he needed-until he had an accident. Then the fine print was magnified.

The insurance policy companies met up 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 don’t need to use the standard policy, a lot of them do, with the exception of Texas and Massachusetts. A form of the standard policy is included here. Check it against yours to ensure that you have a standard provisions policy.

The insurance coverage section in the following paragraphs deals with the standard provisions plan for a private passenger automobile. Don’t own or drive a car without liability insurance. Don’t touch a wheel or drive one inch without it.

Don’t say you cannot afford it. One accident, just one single, could ruin you financially-could run you more than you’ll pay for insurance inside a 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 recognized to the jury. They are going to assume you’re covered. Should a verdict be brought in against you, you can lose everything you own. You may be forced out of business or have your income garnisheed.

Are you compelled to transport liability insurance? Technically, the answer then is no. In theory, you are eligible to one accident, just like you often hear that every dog is eligible to one bite.
Perhaps some drivers carry no insurance since they believe they could avoid accidents by careful driving. In practice, only the foolhardy go not insured.