Vehicle Insurance. Chapter 14 , 14-2. All states have a financial responsibility law. This means you will be held responsible for damage you cause to other people and their property.
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Chapter 14, 14-2
All states have a financial responsibility law. This means you will be held responsible for damage you cause to other people and their property.
This may be satisfied through the suspension of your license, and the possession of your property and savings.About the Risks
Some states require you have a minimum amount of insurance to obtain a license.Compulsory insurance
Includes: to obtain a license.
bodily injury (protects your from claims of injury or death when you are at fault).
Covers people in other cars and pedestrians.
Expressed as a fraction, numbers show limit insurance will pay out to one person, and maximum of total claim in thousands of dollars.
Medical Payments Protection (covers injury to policy holder and family) no matter who is at fault.
Uninsured Motorist Protection (protects policyholder if person at fault has no insurance.
There is also underinsured motorist coverage.Personal injury coverage—bodily injury
Property damage liability to obtain a license.covers you if you damage someone else’s property (usually the other person’s car).
Does not cover damage to your own car.
Collision insurance protects against financial loss from a collision.
Often comes with a deductible
Comprehensive coverage covers loss from things like fire, flood, theft or vandalism.Property damage coverage
This means regardless of who is at fault, you collect from your own insurance company.
This speeds up the claim process and reduces the cost of insurance.No fault insurance laws
Things that could help: your own insurance company.
taking a drivers ed course
good driving record
using same company and plan as parentsReducing your insurance costs