Even though you may have mastered the rules of the road to pass the requirements to obtain your driver’s licenses, choosing car insurance coverage is often a little more complicated. If you’re just beginning your search, there are a couple of things to keep in mind before selecting a policy. It’s important to begin your decision process by learning the laws on insurance coverage in the state in which you reside. Laws regarding automobile coverage vary from state to state so it’s essential to educate yourself.
State Laws Regarding Insurance Coverage
Wisconsin is the 49th state across the U.S. that mandates motorists purchase a minimum of liability insurance coverage. Liability policies cover property damages (property and automobiles) and bodily injury (medical expenses, lost wages, pain and suffering) caused to others in the event of a vehicle accident. Liability also covers any defense and court costs. State laws not only establish the minimal insurance requirement, but in addition to insurance companies, states often regulate the maximum amount of liability insurance coverage that you may purchase.
Personal Injury Protection (PIP) Insurance Coverage
While the 49 states that require motorists to purchase a minimum of liability coverage, several states including Florida, New York and New Jersey also mandate purchasing additional Personal Injury Protection (PIP). Also referred to as “no fault” coverage, PIP covers lost wages and medical expenses of insured drivers in the event of an accident. The purpose of the automobile insurance coverage protection is to ensure PIP patients receive proper medical treatment and protects physicians providing treatment to patients unable to pay for medical care.
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Consequences for Uninsured Drivers
If you’re driving without auto insurance coverage, be prepared for unsympathetic consequences. In most states driving uninsured is a crime with harsh penalties, especially if you’re at fault in a serious accident. On the scene of an accident you are required to show proof of insurance coverage. While presenting proof of insurance is admissible at your court case, the date on your insurance card must be valid at the time of the accident. If you lack proof of car insurance coverage, expect to go before a judge and more than likely endure hefty fines.
The consequences of venturing out without proper coverage for insurance may also include suspension of driver’s license or license plates, especially if you live in California or Ohio. The suspension of license plates typically means vehicles are impounded or immobilized for a minimum of 30 days. Perhaps the greatest risk of driving without insurance coverage is the fact it makes you vulnerable for liability in the event of an accident. Not only are you responsible for the property damages and medical expenses incurred due to the accident, but you’re also responsible for all other parties involved. Such scenarios leave you defenseless to lawsuits. If you can’t afford to pay for damages, then your property or other valuable assets may be seized to recoup damages.
With the numerous companies offering affordable insurance coverage, purchasing policies before an accident is a wise decision that prevents hefty fines, suspension of licenses or plates and lawsuits that could potentially cause you to file bankruptcy.
Insurance Coverage References:
-Auto Insurance coverage by state
-How car insurance works?
-State-by-State Car insurance requirements
