Millions of drivers pay more for insurance premiums than the amount they get back in claims. If this weren’t so, then no insurance firm will stay in the business. In spite of this, many millions more know that driving without insurance can be much more costly, besides being a violation of state laws.
Car insurance is required in 48 states in the US whether you are driving a car, a motorcycle, a truck, or any other type of vehicle. New Hampshire is the only state that does not require drivers to carry auto insurance; however, the state still gives drivers the option to either have it or just post a bond or deposit cash with the state. Drivers in the state of Virginia, on the other hand, have the option to pay the Uninsured Motor Vehicle fee to their state’s Department of Motor Vehicles (DMV) if they do not wish to purchase an auto liability insurance policy.
Millions of drivers, however, consider paying costly insurance premiums financially burdensome. With all the add-ons or types of coverage that drivers need to purchase, plus all the other elements that insurance firms factor in when determining cost of policy, carrying car liability insurance becomes quite expensive indeed.
With regard to the types of coverage required of drivers, these vary by state. Typically, however, the following are the ones that are required: Bodily Injury (BI); Physical Damage (PD) Uninsured Motorist (UM); Underinsured Motorist (UIM). Uninsured Motorist coverage is actually added protection for victims of accidents where the at-fault driver is uninsured, if the vehicle involved in the accident were stolen, or if the accident were a case of hit & run; Underinsured Motorist coverage, on the other hand, is intended to supplement any inadequacy in the at-fault driver’s policy limit.
Some of those that are considered by insurance firms to determine cost of policy (well, to make policies more expensive, actually), are the following: driver’s age and driving experience; type of car driven, driving history, and need to carry an SR-22 filing. If the person intending to purchase an insurance policy were young, has only a few years of driving experience, is driving a car that is more prone to accidents (such as a high-powered sports car), has been involved in a car accident recently or has a DUI record, or has been required by the court to carry an SR-22 filing, the he or she will be considered a high-risk driver and may either suffer very costly premiums or be denied coverage by an insurance company altogether.
Despite all the factors and types of coverage, the website of Milwaukee, WI car accident lawyers says that drivers need not worry about firms refusing them coverage or the effects of all the add-ons on their policy.Read More