Auto Insurance: Why You Need It
Article by May Palmer
If you live in North America and you want to own and drive a vehicle you will have to get auto insurance.
Drivers and vehicle owners are required by law to have auto insurance in most locations in the United States and Canada. You will need to have proof of auto insurance in the form of an insurance card with you if you are driving in most locations in North America. The police can fine you or suspend your driver’s license if they catch you driving without auto insurance.
To get this insurance card you will have to purchase an auto insurance policy. The kind of auto insurance policy you will need will depend upon local laws and the kind of vehicle you drive.
Auto insurance requirements vary from state to state because each American state and Canadian province has different laws governing car insurance. Some jurisdictions only require collision or liability insurance while others require all drivers to be fully insured when they’re on the road.
You can learn what the insurance requirements are in your area by going to your state or province’s government’s website. The auto insurance requirements in your region should be listed somewhere on the site.
You may also be able to learn what auto insurance is required in your area when you get your driver’s license. In some areas you have to bring in proof of insurance in order to get a driver’s license. The employees at the driver’s license office should be able to tell you what auto insurance you will need.
One kind of insurance that every driver should have is liability insurance. Liability insurance will cover the cost of any damages caused by an accident that is found to be your fault. If you are in an accident that causes injuries or damage you could be sued. Liability insurance will pay for the cost of the damage and the cost of hiring lawyers to handle the suit.
If you are driving an older used car you maybe able to get by with just liability insurance. Some states only require liability insurance while others will have more requirements. In many areas injury insurance will covers the cost of medical care to those injured in accident is also required.
If you are driving a vehicle that you are making payments on you will probably be required to get replacement insurance. Replacement insurance covers the cost of replacing the car if it is damaged or destroyed in an accident. Most of the companies and banks that issue car loans will require you to get replacement insurance when you get such a loan so they can recover their money if the car is wrecked.
You should be able to save money on auto insurance by shopping around for it. There are dozens of companies that issue auto insurance and they all want your business.
Simply typing the words auto insurance into a search engine should help you locate several companies that issue auto insurance in your area. Each of these companies should be able to give an insurance quote that you can compare. By comparing auto insurance quotes, the average person should be able to get the cheapest auto insurance possible.