Posted on Tuesday, 20th July 2010 by admin
When you take an auto insurance policy, you need to be aware about auto insurance laws. However, auto insurance laws vary from state to state. In some states, you may find that the laws are quite relaxed whereas in other states you may find that the laws are quite strict.
Auto insurance laws :
Add-on states are those states where the auto insurance company pays for the accidental damages. Tort states are those states where if you get involved in an accident and you or the other party is at fault, then you may file suit against the other party to compensate the loss that you have incurred. No-fault states are those states where your insurance company will provide coverage for the damaged car (irrespective of who caused the accident) when you get involved in an accident.
3 Auto insurance laws : However, there are some common auto insurance laws that are applicable to all the states. Here are the 3 auto insurance laws that you must know:
1. Bodily injury: All states require minimum property damage coverage and bodily injury liability coverage. When the policy holder is found responsible for causing an accident, the insurance company pays the claims. The minimum property damage coverage and bodily injury liability coverage for the cars and motorcycles are same in most of the states.
2. UM and UMI motorist coverage: When an insured person gets injured by a motorist (carrying no insurance) then uninsured motorist coverage (UM) pays benefits to the policyholder. Under-insured motorist coverage bears the expenses when the policyholder gets injured by a motorist who has not sufficient insurance to pay the claim.
Although these coverages are optional, yet the insurance companies have to provide these coverages in most of the states. The auto insurance laws monitoring uninsured motorist coverage and under-insured motorist coverage apply to both motorcycles and cars.
3. Medical expenses: Medical expense coverage- also known as first- party coverage or personal injury protection (PIP) pays hospital, medical, disability expenses on behalf of the policyholder. Most of the states don’t regulate medical expense coverage.
These are some common auto accident laws that you must know before taking an auto insurance policy.
Useful lawyer resources:
In case of car accident in Chicago, visit www.thechicagoinjurylawyers.com to hire a competent Chicago Accident Attorney. He or she will help you to get the right amount of compensation
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