Everyone in America is required to buy insurance if they own an automobile.
While laws vary from state to state regarding the dollar amount and types of coverage required, driving a vehicle with no insurance is illegal. It is important to know what your coverages mean, so you can decide if the insurance you have purchased will be adequate to cover your needs. Liability insurance is required by all states. This portion of your insurance covers damage you cause to other drivers, their passengers and their property. State minimum coverage is not advisable. Some states allow you to carry Bodily Injury Liability limits as low as $25,000 per person. As an automobile owner, you are financially responsible for any injuries you cause. In a serious accident, an ambulance ride, hospital visit, and follow up exams can can easily cost more than $25,000 and you, as the driver, are responsible for these bills. When you buy insurance, it is also important to carry enough Property Damage Liability Insurance. Some states require you to carry as little as $10,000. If you should cause another vehicle to suffer a total loss, you can easily expect the loss to be over this amount, as any new car and most used cars on the road will cost more than this to replace. Full coverage insurance will cover damage you cause to your own vehicle. There are two parts to Full Coverage Insurance. The first is called Comprehensive Coverage. This covers any damage to your vehicle that is not caused by colliding with another car, such as hail damage, vandalism or theft. The second part of full coverage insurance is Collision. Collision insurance covers you when you collide with an object, such as another vehicle, or a stationary object like a mailbox. To ensure your coverage is adequate, you may want to meet in person with your insurance agent before you buy insurance.