Sunday, September 2, 2007

Automobile Insurance

Many countries in the world makes automobile insurance mandatory for getting a license to put a car on public roads. This is for obvious reasons. A car may get involved in an accident causing property damages, injuries, in serious cases, death. The driver and/or the car owner may be liable to pay damages or compensation. The figure may be huge and beyond the ability of them to pay and the aggrieved party or parties will be deprived of their legal (and moral) rights. By making automobile insurance mandatory, this ensure that parties eligible to compensation and damages get paid. Most motorists purchase their cars with the aid of car loans. In such cases, invariably, the car loan companies will require the purchaser to get insurance to protect their "investment". They will probably require the purchaser to get a Comprehensive Auto Insurance or Collision Auto Insurance.

The situation in the United States is complicated because each of the 50 states have its own requirements on automobile insurance. In some, it is mandatory. In others you can get away by showing documents you have to meet any potential claims. You can get more details from Auto Insurance Remedy. In addition to general information, on that site, there are links to sites giving information of the requirements of individual states. For example, a brief check on California (CA) Mandatory Auto Insurance Minimums shows that one of them is for Liability Car Insurance: Bodily Injury Policy (BI).

Penalties for non-compliance is also very variable with some states imposing a penalty as little as a $100 fine, while others suspend a driver's license the car registration for up to six months, up to a $5000 fine, and up to one year in jail. It is advisable for you to check and then get an online quote for the auto insurance policy you need from the above sites.

Homeowners Insurance and Health Insurance

The principle behind insurance is spreading risks. One is exposed to all kinds of risks, and if you don't provide protection against these risks by getting the relevant insurance, if you are unfortunate, and the risk happened to you and you are not protected by an insurance policy against that risk, you and your family can face great hardship and it may even bring bankruptcy upon you. It is wise to share the risks to which you may be exposed to by spreading the risks among many people via an insurance policy from a reputed insurance company. For most types of insurance policy, if the unfortunate didn't happen to you, your small premium you pay for the insurance policy is gone, but the unfortunate get compensated and a disaster can be averted. Getting an insurance policy to spread the risk is a highly advisable practice.

There are many many types of insurance which a common man may need. Most people just purchase an fire insurance policy for their home to provide for the contingency of a fire destroying their house, most because they obtained a bank loan for purchasing that house and the bank make it mandatory. However a fire insurance policy do not provide for many different contingency like the loss of the content of the house. A better insurance to go for is a Homeowners insurance which is more comprehensive.

Getting sick can be expensive and is getting more expensive by the day. Medical expenses can drain your savings and more. Some may even have to resort to selling their house to get the medical treatment they need or even go without the treatment they need. However, if you get a Health insurance, the insurance will pay for your medical treatment if you get sick. Of course, if you remain healthy, the premium you pay is gone, but to me that is a better alternative to getting sick and getting the benefits of the insurance police.

There are other types of insurance, and you can find out more about them from Insurance.