This is a guest post. The views of the author do not necessarily reflect the views of The Insurance Barn.
You purchase an auto insurance policy so that you can save yourself as well as your family members from any unforeseen circumstances that can happen anytime at any place. There are different insurance companies that sell you auto insurance policies with several benefits. With the help of free auto insurance quotes, it has become much easier for you to compare between different quotes so that you can purchase the most suitable auto insurance policy according to your requirement. However, different states have imposed different insurance laws on these policies. It is advisable that you talk with your insurance agent before you decide to purchase an auto insurance policy.
3 Types of auto insurance laws
It is very important for you to know about the auto insurance laws of your state. The free auto insurance quotes have made it convenient for you to make a comparison between different policies before you decide to purchase one. Go through this article to know about 3 types of auto insurance laws.
Make your premium payments timely
– You should pay your premium on time in order to save your policy and, at the same time, avail the benefits of the policy. However, in the worst situation, if you do not pay your premium amount even within the grace period, then your auto insurance policy will get cancelled. [Keep in mind that every state has different laws. While one state may allow you a grace period in which to pay your premium, another state may not. If that is the case, your insurance company can require full underwriting before your policy is reissued. You may not have insurance between the time your policy lapsed and when a new policy is issued.] In order to avoid such situations, it is advisable that you look for free auto insurance quotes so that you purchase the policy with the premium amount that you can afford to pay within your capacity.
Obey the traffic rules
– It is very important on your part to obey the traffic rules properly. In case, you fail to do so, it will affect you to a great extent. Try to obey them as much as you can so that you do not get a black mark in your driving record. The worst situation that you may face by not following the traffic rules is that your car registration may get cancelled. However, if you meet with an accident in future and the other person does not have auto insurance, then, in such a situation you’ll have to bear the damage expenses from your own pocket.
Get to know about minimum insurance limit
– You should make it a point to know about the minimum [liability] insurance limit of your state. This will enable you to know about the total financial liability that your auto insurance company will offer you in case you file a claim. [The Insurance Barn does not recommend that you even consider state minimum liability insurance. If you cause damages more than your liability limits, your insurance company will only pay up to the levels you purchased. You are personally liable for the extra. On top of that, if you get taken to court your insurance company will only pay for a lawyer to defend you up to the level of your policy. If you are sued for more, you may have to pay lawyer fees in addition to judgements. We advise people to think very carefully before settling for state minimum liability insurance.] The first two numbers denote the total amount that you will be given in order to cover the cost of bodily injury. The last number indicates the liability coverage for any property damage that may occur due to any accident.
Apart from this, you should also find out whether or not your state offers no fault auto insurance law. You may opt for it in order to protect yourself as well as your passenger’s medical expenses in spite of whoever had caused the accident. Thus, it can be said that it is wise enough to purchase required auto insurance coverage from before hand in order to overcome any unavoidable circumstances in future.
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