Sunday, May 23, 2010

Automotive Insurance in the USA

Automotive insurance with liability coverage for property damage and injuries to a third party is a must in most of the states in the USA. But there are many variations in the process of enforcement of these requirements.

New Hampshire does not make it compulsory that motorists need to have liability insurance. Virginia, on the other hand, does; and the residents there have to pay an annual fee of $500 per vehicle unless they choose to purchase liability insurance.

Penalties for non-compliance with the state rules regarding auto insurance differ from state to state, although in most of the cases they involve a large amount of fine, suspension and/or revocation of license and registration, and a possible jail term. The minimum that is made obligatory by law, usually, is third party insurance for the protection of third parties from financial loss, injury or damage from the operation of a vehicle.

In North Carolina, it is mandatory for a driver to have liability insurance as a pre-condition of the issuance of the driving license to him or her. Unless you have a liability insurance, you are not eligible to drive in North Carolina.

Some of the states insist that you must always carry your insurance documents with you in your car. Some states do not make it a compulsion. However, it is advisable that one should carry this document at all times in the car without exception. No reason to take a risk and go into an argument with law enforcing personnel.

Some authorities recommend that car insurers should issue license plates valid for the period of insurance coverage. The car owners will have to put this license plates on their cars. This will make the task of spotting cars without insurance easy because such a car will have no license plate provided by the insurer.

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