Table of contents
About Auto Insurance
Auto insurance is all about protecting a person against financial losses resulting out of automobile usage. The insured might opt for one or more of all the coverages provided by an insurance company. An insurance policy may cover the insured vehicle, the owner of the vehicle, people accompanying him at the time of accident, any third person who gets injured as a result of the accident, his family members, friends, or relatives who drive the same with his permission.
Top
State Categorization
Auto insurance laws for the states fall under the following three categories.
No-Fault State
Many states have "no-fault" laws. Some times it becomes difficult to determine who caused the accident. In that case the auto policy must pay for the bodily injury and property damages no matter whoever is at fault. Also, each party in an accident is responsible for its own medical expenses and other injury-related costs that are incurred in an accident. Under pure no-fault system neither party is allowed to sue the other.
Tort State
In "tort" states there are no restrictions on lawsuits. That is you can or can be sued by the other drivers or by the passengers for the pain and suffering.
Add-on State
For the "add-on" states, drivers receive compensation from their own insurance company as they do in no-fault states, but there are no restrictions on lawsuits.
Top
Related Community discussions
Top
FAQs maintained and can be claimed by community members
Top
Top
