Every state follows its own car insurance laws and regulations and each driver who resides in that state must comply with these rules. Before you secure an auto insurance policy, it is a wise idea to review your state auto insurance. This simple move can save you time, money, and hassle if you should be required to file a claim in the future.
Liability insurance is one of the most important insurance coverages you can purchase; it is also the one that is required by each state. The only difference is that the minimum limits required differ from state to state. Liability insurance will cover damages that you cause to another person's vehicle or other personal property. It will also cover expenses relating to injuries that you cause to another driver, pedestrian, or passenger. Car insurance laws in each state may require different limits for personal property, injuries to one person, and total injuries resulting from one accident.
State auto insurance may also require a driver to carry a number of other coverages that are optional in other states. Such coverages can include Personal Injury Protection (PIP) or under/uninsured motorist coverage. PIP will pay for medical expenses, funeral expenses, day care, or loss of wages, regardless of who is at fault for the collision. Under/uninsured motorist coverage will pay for damages if you are involved in an accident with another driver who doesn't carry adequate insurance to pay for all damages or injuries.
State car insurance laws also regulate how insurance claims are paid out. State auto insurance can fall under one of two categories; tort insurance or no fault insurance. With tort auto insurance, the driver who is deemed to be responsible for an accident will have to pay for property damages and injuries that result. In a no fault state, each insurance company will pay for their own driver's damages and injuries, regardless of who is at fault for a collision. This doesn't mean that the at fault party will not be penalized. The driver who is responsible will most likely receive fines, be charged for the accident, and see an increase in their insurance premiums.
Always ask your insurance agent which system of insurance your state of residence follows; tort or no fault. As well, review the minimum required insurance coverages and limits in your state. If you neglect to do this, you may find yourself with insufficient insurance coverage. If you are involved in an accident, you could be paying out of pocket for damages or injuries that result. These expenses can add up to hundreds of thousands of dollars and you may be paying for the rest of your life.