What is auto insurance?
Auto insurance protects you against financial loss if you have an accident. It is a contract between you and the insurance company. You agree to pay the premium and the insurance company agrees to pay your losses as defined in your policy.
Can I drive legally without insurance?
NO! Almost every state requires you to have auto liability insurance. All states also have financial responsibility laws. This means that even in a state that does not require liability insurance, you need to have sufficient assets to pay claims if you cause an accident. If you dont have enough assets, you must purchase at least the state minimum amount of insurance. But insurance exists to protect your assets. Trying to see how little you can get by with can be very shortsighted and dangerous.
Why does the driving record of members of my household affect my rates if they do not drive my car?
Auto policies are heavily regulated by the state you live in and most situations require insurance to pay no matter who’s driving your car. If the insurance company only had to pay for losses involving the listed drivers then they would only be concerned with the driving records of the listed drivers because all others would not be covered.
What should I think about when buying car insurance?
Here are some basic things to consider when purchasing car insurance. First, decide what optional coverage’s you want and need. Look at your situation and don’t be fooled into buying something you don’t need.