Auto insurance in the United States and elsewhere, is designed to cover the risk of financial liability or damage to a motor Auto owned by the owner if their Auto is involved in a collision resulting in property or bodily damage. Most states require motor Auto owners to carry some minimum level of liability insurance. States that do not require a Auto owner to carry Auto insurance include Virginia, where an uninsured motor Auto fee can be paid to the state, New Hampshire, and Mississippi, which offer Auto owners the option of posting a cash bond (see below).
He Privileges and Immunities clause of Article IV of the US Constitution protects the rights of citizens of each respective state when traveling to another state. A motor Auto owner usually pays a monthly fee to the insurer, often called the insurance premium. The insurance premium a motor Auto owner pays is usually determined by a variety of factors, including the type of Auto covered, marital status, credit score, whether the driver is a rental or home owner, the age and gender of any covered driver, and their driving history. , and the location where the Auto is primarily driven and stored. Most_ insurance companies will increase insurance premium rates based on these factors and offer_ discounts less frequently.
Insurance companies issue an insurance card to the owner of a motor Auto for a specified coverage period, which is to be kept in the Auto in case of a traffic collision as proof of insurance. Recently, states have begun passing laws that allow authorities to accept electronic versions of proof of insurance
Consumers_ may be protected by different_ levels of coverage depending on which insurance policy they_ purchase. Coverage is sometimes seen as 20/40/15 or 100/300/100. The first two numbers seen are for medical coverage.In the 100/300 example, the policy would pay $100,000 per person up to a total of $300,000 for all people. The last number covers property damage. This property damage can cover other people's cars or anything you hit and damage as a result of an accident. Some states require you to purchase personal inj_ury protection that covers medical bills, lost work time, and more. You can purchase insurance if the other driver is uninsured or insured. Most states do not require drivers to carry mandatory liability insurance coverage to ensure that their drivers can cover the cost of damage to other people or property in the event of an accident. Some_states, such as Wisconsin, have more flexible "proof of_financial responsibility" _requirements.
Commercial insurance for Autos owned or operated by a business works the same as personal auto insurance, except that personal use of the Auto is not covered. Commercial insurance prices are usually higher than personal insurance because of the extended coverage for commercial users.
In the United States in 2017, the largest private passenger Auto insurance providers by market share were State Farm (18.1%), GEICO (12.8%), Progressive Corporation (9.8%), Allstate (9.3%), and USAA (5.7%) . Insurance is secured either by working with an independent insurance agent or by working with an insurance broker who is authorized to sell insurance policies. Some may represent different companies, or the growing number of online brokers who offer policy purchases through online sites.
Liability coverage, sometimes known as accident insurance, is provided for bodily inj_ury (BI) or property damage (PD) for which the insured driver is deemed responsible. The amount of coverage provided (a specific dollar amount) will vary from jurisdiction to jurisdiction. Regardless of the minimum, the insured can usually increase coverage for additional charges (before loss).
An example of property damage is where an insured driver (or first party) drives into a telephone pole and damages the pole; Liability coverage pays for pole damage. In this instance, insured drivers may also be liable for other costs associated with damaging telephone poles, such as loss of service claims (to the telephone company), depending on the jurisdiction.
An example of bodily inj_ury is where an insured driver causes bodily harm to a third party and the insured driver is held liable for the inj_ury. However, in some jurisdictions, third parties must first exhaust coverage for accident benefits through their own insurer (assuming they have one) and/or the insured driver must meet a legal definition of severe impairment to be entitled to claim (or sue) under it. or first-party) policies. If a third party sues the insured driver, liability coverage also covers court costs and damages for which the insured driver may be held liable.
In some states, such as New Jersey, it is illegal to operate (or knowingly allow ano