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Understanding How The State That You Live In Impacts Your Car Insurance Coverage

Most people only know the basics about auto insurance coverage. They know that the coverage is mandatory in most states but some drivers still break the law anyway and decide to drive while uninsured. In the United States, there are more than six million accidents each year. This means that most drivers will be involved in at least one accident in their lifetime. You can be the best and most focused driver ever and end up getting into an accident. Statistics have stated that each driver has a 1 in 16 chance of being involved in an automobile accident each year and more than 18.5 million people annually are victims.

It is important to know everything that you can about the various types of coverage that are available. Knowledge is power and it is important for people to know the auto insurance laws that their state has enacted. For example, the state of Florida is a no fault state.

This means that all of your medical care will be covered in accordance with your auto insurance policy. You can continue to receive care until you have exceeded the maximum dollar amount allowed by the policy. The law does not cover property damage though so keep this in mind. You do have the legal right to file a lawsuit to sue for damages after the medical payments have no longer been paid out. In the United States today, twelve out of 50 states are classified as no fault insurance states. If you live in one of these states then you will pay more for your auto insurance coverage than drivers who live in other states. Premiums are about one fifth higher because more money is being paid out to accident victims.

One state that is unique is New Hampshire. They have never required drivers to have minimum liability insurance coverage. If you live in the Granite State and get involved in an accident then you will have to post a bond to show that you will be held financially responsible for any medical bills and damages that occurred. This could really hurt uninsured drivers because these damages can often cost in the thousands of dollars.

South Carolina drivers are allowed to drive while uninsured but they have to pay a fee of $500. However, drivers should beware because the fee does not release them of the financial liability of being involved in a crash. It pays to be insured and have the insurance company take care of the expenses. Drivers should research the laws carefully so that they can make the right choices in regards to their individual car insurance policy.