During tough economic times, many people are tempted to cut back on their insurance coverage to trim their budgets. Unfortunately, this is not really an option for auto insurance. In 47 states, drivers are required, at minimum, to carry a compulsory auto liability policy. The rules and potential penalties vary by state. In New Hampshire, for instance, motorists are not required to have a liability policy, but in Virginia, if a driver opts not to have auto coverage, he will owe the state an annual fee of $500. Similar fines or fees are common, as are license and/or registration suspension or potentially, revocation. Some states will even assess jail time.
Buying car insurance online can, however, help hard-pinched consumers to find good coverage at more affordable rates. Comparison tools and online quote engines simplify the process of sifting through benefit provisions and picking an appropriate level of coverage. That decision is also affected by compulsory auto insurance laws. Having a better understanding of those regulations and of the potential hazards of carrying only minimally-mandated coverage will help consumers to make better personal choices about their auto policies.
The purpose of compulsory auto insurance policies is to protect the public from the high costs of injuries and property damage resulting from vehicular accidents. Most states establish a minimally acceptable level of coverage to guarantee medical and property costs will be met. Therefore, if you have insurance, and if you are in an accident where you are found to be at fault, your insurer will pay the medical bills, provide compensation for any lost work time, and meet the cost of damages for the other driver. The same coverage will extend to passengers in the other car, and in your car, unless those individuals are your blood relatives.
There are, however, many gaps in auto policies that fulfill only the state-required level of coverage. Fires and thefts not directly related to the accident are not covered and, there are no benefits for accident-related expenses like towing. Should you be hit by an uninsured driver, you won't recover the entire amount of the needed repairs on your own car. This is why most insurers recommend that drivers take out comprehensive coverage packages.
Comprehensive auto insurance includes personal injury protection. This means that medical expenses, work compensation, and living expenses of a reasonable amount will be paid, no matter who was at fault. Benefits are also included for necessary travel and towing expenses as well as glass replacement. Note, that if you take out a bank loan to buy a car, you will likely be required to acquire and to keep comprehensive insurance coverage until the loan is retired.
Making changes to your auto insurance involves weighing economies of scale. You are required to have the coverage and failing to do so may subject you to fines and penalties you can ill afford. By the same token, carrying only a minimal level of protection could put you in a position of being unable to repair your own vehicle after an accident or mired in legal wrangles with the other driver. By using available online, tools, however, most car owners with clean driving records can find coverage that is both affordable and comprehensive.
