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.