Auto insurance is governed by the state laws. The state laws have mandated certain auto coverage to ensure safety of the community. Hence, if you want to continue with the privilege of driving in your hometown, you should learn the state auto insurance laws by heart.

The auto insurance laws of America vary widely, but still can be categorized as the following,

The tort state:

Tort defines the injuries that are eligible to receive compensation under the law. In a tort state, one party is identified as the responsible party for the accident and is liable to compensate the sufferers for their losses.

A tort state can further be categorized as ‘full tort’ and ‘limited tort’. In the limited tort state, the recipient can’t claim compensation for the pains and sufferings from the party responsible for the damages, until and unless he suffers permanent disability.

The no-fault state:

The no-fault state requires the drivers to carry insurances for their own protection, since it imposes restrictions upon the ability to sue the responsible driver.
Under the pure no-fault law the drivers are covered under their own plans respectively and will receive coverage irrespective of their responsibility for the damages. However, no state follows the pure no-fault status, and thus leaves the opportunity for the involved parties to sue the other to recover a portion of their damages.

The ‘add-on’ no-fault state:

The add-on no fault state allows the victim to collect the benefits under the responsible party’s bodily injury liability coverage, once his medical expenses exceeds the PIP coverage limit.
The doctrine of comparative negligence
Some states follow the theory of comparative negligence, where the responsibility of an accident gets distributed amongst the parties involved in it. This doctrine restricts one party to hold the other party fully responsible for the damages caused to him.
In the states following the doctrine of comparative negligence, the party contributing more than 50% towards the damages caused in the accident, is the party at-fault.
The issue of liability
All the states require the drivers to carry at least the minimum liability coverage and that is to ensure the safety of the community around the driver. The state law makes sure that the driver has adequate coverage to compensate for the damages caused by him to others.

About the Author:

Evan T. Smith is a moderator and a contributing writer for the Insurance for the last 3 years. He has gained knowledge on the various facets of the insurance industry.

Article Source: ArticlesBase.com – State Laws for Auto Insurance

Help- Any auto insurance agents around?

Hello, thanks for viewing.

Yes. Your insurance company should be able to assist you in contacting the other party and finding out if they have insurance coverage. Provide them with the info you got from the other person.
I often file claims for my insureds withen they have been in a not-at-fault accident.

Where’s the best place to get minimal auto insurance coverage in Kentucky?

I’m looking for insurance on an old 1986 nissan 300zx I got a quote for around 100 a month which I think is high considering I have full coverage on a new car for 120 so any suggestions? BTW the type of car isn’t being a factor bc a 1992 toyota corolla was higher on the quote than the 300zx? Any places besides progressive online would be great. I don’t want to be paying more in per year than the danged car is worth!
The type of car didn’t matter in this case (being a sports car) because the rate for a family car was quoted as more. Thanks anyways Mark.

I’d say go for the best deal you get, because when it comes to the crunch you have the same rights by law, regardless of who you are with.
Try filling a form here http://www.quick-car-insurance-comparison.simplyinsurancequotes.com?form
it’s one form to get a number of quotes from different insurers. It’s free and a big time saver, these are all the main American insurers competing to get your business so you are bound to find something that suits you, if it works out remember my points please

Everyone has to be responsible and carry auto insurance. Not only is it responsible but it’s the law. Paying those yearly or bi-yearly premiums is one of those things that we automatically account for, like paying our mortgage or paying rent. I think that because of this and because we go on auto pilot when the insurance company sends out those premium renewals that we just pay it without question. I think that is where the trap is and why so many people end up paying that insurance premium no matter what the cost is. Well, I have a great solution for that to save you money.

I think that every year when it comes time to renew your auto insurance don’t you just hate how much you actually have to shell out for it? Have you ever really thought about just how much actually goes into that year after year? I man really has it ever occurred to you if your auto insurance premium will ever start to decrease instead of increase? Of course not because we think that increasing rates are a normal progression. Well, its not.

First and this is very important. You always have to compare your current rate. You should take your own initiative and start the process of reducing premiums yourself. Yes, it can be done because you’re a good driver. Your insurance carrier probably knows that and yet, your coverage is still the same from your insurance company. But that is something we can’t take for granted. Just because you are a good driver you think that your rates will automatically decrease because of this or that it will happen automatically. You have to be your own advocate with insurance companies.

Secondly, most people are under the impression that when that yearly renewal policy rolls around that’s when it’s going to happen for them. Don’t be so sure. The renewal discount is probably the most common of the rate reduction that people wait for with auto insurance premiums. Each state has their own set of rules and regulations so you have to check with each individual state law for accuracy. You don’t ever have to wait for the New Year to look into a new carrier to compare rates. That’s the best time to do that is before your next premium is due.

Thirdly, if you’re a good driver then make sure that you remain that way. Keeping a good driving record is the primary bargaining chip for you. This is the best defense you have to reducing your premiums year after year. Keep to the speed limit. It is common for insurance companies to offer a discount for renewing your policy after 12 months. Again, this depends on your driving history within that time frame and the amount of moving violations or citations that were issued to you. If you do keep a good driving record within that time frame this kind of discount is given automatically to the insured and requires no action on their behalf.

That is why it as important to you as a consumer to always shops around and compares rates. I always say that this is your only defense to getting that great rate you deserve. Always take the liberty of shopping around to compare rates and services to get you a cheaper rate. It is possible you just have to take the initiative and start the process yourself. It is said that most insurance companies base their rates on your driving record not your age as much.

About the Author:

When companies compete you save money from Toronto Auto Insurance offer different rates for insurance just as San Diego Auto Insurance companies, compare rates even in San Jose Auto Insurance to save money on companies you trust.

Article Source: ArticlesBase.com – Is Your Auto Insurance Costing You A Fortune? Here Are 3 Tips To Help You Save Money