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What Beginners Need To Know About Auto Insurance Laws

An insurance code is a set of all the auto insurance laws, rules and regulations put into a single collection. The supervision of these laws is the primary responsibility of the departments of insurance in conjunction with the law enforcement authorities charged with maintain law and order in society. You will need to understand the laws pertaining to your state because there are laws that are common in some states but in others, they may differ a little. For example, the laws concerning minimum liability insurance may be the same in some states but very different in others.

Take Texas for example, the minimum liability insurance for injuring or killing one person stands at $30,000, for injuring or killing more than one person stands at $60,000 and for property damage is $25,000. In other states e.g. California and Pennsylvania the minimum liability insurance are the same and stand at $15,000 for death of injury to one person, $30,000 for death or injury to more than one person and $5,000 for property damage.

In most states, no matter the difference in the minimum liability insurance requirements, the law is clear on the need for every motorist or car owner to have financial responsibility in the event they are to be held responsible for causing a car crash and have to pay for the damage to property of cover the medical bills of the innocent driver. This is commonly done by buying cheap car insurance from a reliable and reputable car insurance carrier that is licensed to operate in your respective state.

Another way is to simply deposit a predetermined amount of money with the local DMV that will be held by them and be used to cover for the costs incurred should you cause an accident. In this case, the DMV will issue a certificate to the effect that you are indeed financially responsible if you cause an accident. Also, you may get yourself a certificate of self insurance from your local DMV if you have a large fleet of vehicles in your possession, usually twenty five or more vehicles.

You are required by law to always carry proof that you have such financial responsibility at any one time and failure to do so may land you in serious trouble with the authorities. In case you are self insured or have deposited an amount with the DMV, county judge or county comptroller, then the certificate issued will act as your proof. In case you take the option most common to Americans of purchasing auto insurance from a good insurer, then an insurance card will be your proof. Always carry it with you in case a law enforcement officer pulls you over and asks for it.

Compare car insurance policies and rates from different auto insurers in your state today by entering your zip code in the space provided at the start of this page. You do not want to be caught unaware and on the wrong side of the law. The consequences are dire.