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US Auto Insurance Laws For Various Aspects

For most of the states in the US, minimum liability insurance usually falls under the following categories and differ from state to state in accordance with the state’s auto insurance laws:

In California, the statutory minimum requirement of liability insurance falls into three parts:

I. Minimum liability insurance for damage caused to property for every vehicle accident

II. Minimum liability insurance for bodily injury or death to one person for every car accident

III. Minimum liability insurance for bodily injury or death to more than one person for every car accident.

In the US, you are able to achieve financial responsibility by purchasing a car liability insurance cover from a car insurance company licensed and registered to operate in your state. You can also show that you have financial responsibility by depositing a certain stipulated amount of cash with your local department of motor vehicles, get yourself a surety bond from an authorized car insurance company or alternatively, you could get a self insurance certificate issued by your local DMV in the event that you own a vast fleet of vehicles.

Here is a look at some of the auto insurance laws that apply to different aspects of auto insurance.

Auto insurance laws on rental cars:

After establishing the fact that all cars are expected to have insurance under the law, all rented vehicles are not an exception. Auto insurance companies and credit card companies across the nation have policies that are tailor made for rental cars. Rental companies also have facilitation for purchase of insurance. Here, the law requires that you show proof of financial responsibility by having a copy of the agreement between the rental company and you detailing the auto insurance status.

Auto insurance laws on exclusion of coverage

A car insurance company has every right to exclude certain persons from coverage if they have valid reasons. This however, is not to say that they are free of financial responsibility in the event of an accident. The holder of the policy may be held personally responsible especially if the driver was behind the wheel with their permission. In this case, the policy of the owner becomes invalid and they have to cover for the damages out-of-pocket.

Auto insurance law on under or uninsured motorists

The law does not make it mandatory to have uninsured or underinsured motorist coverage but it is the coverage that you would really want to have. This is because in the event of an accident, you do not know the state of the other party’s auto insurance and you do not want to be caught unaware. The price may range from $50,000 to as high as you may want to go.

Auto insurance laws on previous auto insurance status

Lapsing of your insurance policy is taken seriously and in many states buying short-time insurance only to cancel it can result in suspension of your driver’s license and car registration. Buy long term insurance and do adequate research so as to avert the need to cancel it due to any reason because the long arm of law will catch up with you.

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