Before you carpool with anyone make sure your car is insured. Car insurance is one of the essential things to have if you own a car. Car insurance helps to cover the cost of damages when one meets an accident on the road. Car insurance can cover the insured party, the insured car or third parties.
Car insurance is mandatory in all states of the United States with the exception of New Hampshire. In most countries outside the US, auto insurance is necessary before one can drive their vehicles on the road. Driving a car without auto insurance can lead to huge penalties and suspension or cancellation of ones license. In some states, drivers can be sent to jail when driving a vehicle without car insurance.
Bodily Injury Liability
This coverage, which is required in most states, compensates the driver of the other car and its passengers in the event you get into an accident. It also covers the passengers in your car. The main consideration here is protecting your assets against lawsuits that arise from auto accidents. You can get sued even if the accident is not your fault.
What Car insurance Coverage Do I Need?
Most Online Car Insurance Quotes and most actual liability insurance policies contain at least these three major parts (Some states minimum requirements include additional coverages):
1. liability insurance for bodily injury – A typical State might Require $25,000 in Liability coverage for Bodily Injury.
2. liability insurance for property damage – A typical State might Require $50,000 in Liability coverage for Property Damage
3. uninsured/under insured motorist coverage – A typical State might Require $25,000 in uninsured motorist coverage
In auto insurance terms this would be a 25/50/25 policy