How Car Insurance Works
Car insurance is designed to protect drivers and their passengers from financial hardship after an accident or other vehicle-related incident. Auto insurance, or other proof of financial responsibility, is mandated in every state.
Insurance can be confusing, but it can help you to find the right coverage at the best price to understand more about how it works and why it's required.
Car Insurance Requirements
While the car insurance requirements vary by state, drivers must always prove they can pay damages in the event of an accident. This is called proving financial responsibility.
Some states allow drivers to prove their ability to pay damages by posting a bond or certificate; however, car insurance is typically the easiest way for drivers to fulfill the requirement.
To learn all about the types of car insurance coverage required in your state, visit ourInsurance Requirements section.
Benefits of Car Insurance
Before car insurance was widely adopted and mandated, car accident victims would usually get no form of compensation in an accident. In the event that a victim did sue the driver at fault, those drivers often faced huge costs that could be financially crippling.
Requiring car insurance helps states protect drivers from the enormous costs that can be associated with an accident. It ensures that both:
- The at-fault driver can cover the costs of the injuries or property damagesresulting from the accident without losing huge sums in a lawsuit.
- The victims of the accident can seek the medical care required, pay for funeral expenses, and/or fix their property in a timely manner without paying out of pocket.
Car insurance can give you the peace of mind knowing that you'll be financially covered after an accident.
0 on: " "