Most car owners have only a hazy familiarity with automobile insurance. They seldom read the fine print. There is nothing mysterious about automobile insurance – over here. It is Protection. Basically, there are two kinds.
Automobile Insurance protects you against claims of others arising from the ownership, maintenance or utilization of your automobile. Physical Damage Insurance protects you from loss or injury to your own automobile. Included in this type of insurance are Collision, Comprehensive, Fire and Theft coverages.
Car insurance policies varied from company to company. The insurance buyer didn’t know what to expect. He thought he previously the insurance he needed-until he had an accident. Then a fine print was magnified.
The insurance coverage companies got together 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 Aba and the National Association of Insurance Commissioners worked out a standard automobile policy. While companies don’t need to use the standard policy, many of them do, except in Texas and Massachusetts. A form of the standard policy is roofed here. Check it against yours to make certain that you have a standard provisions policy.
The insurance section in this article deals with the conventional provisions plan for a private passenger automobile. Don’t own or drive a vehicle without liability insurance. Don’t touch a wheel or drive one inch without it.
Don’t say you can’t 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 bring in whopping big verdicts. They assume every defendant is insured. When you have no insurance, you cannot make it recognized to the jury. They’ll assume you are covered. Should a verdict be earned against you, you could lose whatever you own. You could be forced out of business or have your income garnisheed.
Are you compelled to hold liability insurance? Technically, the answer is no. Theoretically, you are eligible for one accident, just like you often hear that all dog is entitled to one bite.
Perhaps some drivers carry no insurance simply because they believe they are able to avoid accidents by careful driving. Used, only the foolhardy go without insurance.