States in the US have differing laws when it comes to auto insurance. Most states mandate insurance and penalize parties that are not insured. However figures suggest that approximately 15% drivers are not insured. Most of these people outside the system are assumed to be either illegal aliens or civilians who are too poor to buy insurance and worry about the civil liability. The law of the state dictates the penalties for the uninsured, but it is reasonable to suggest that in the absence of auto insurance, possibly 90% of families would be bankrupted if they were to face liability for a major accident. Having more vehicle owners insured would also bring down premium rates and makes coverage cheaper.
There are arguments against the mandatory auto insurance that some US states are debating. Government paperwork is imposing and often claims are not settled amicably, with legal advice having to be sought. Expensive legal fees and non-addressal of legitimate claims are some of the key complaints against the policy of compulsory auto insurance. Some even suggest that drivers would drive more carefully if they had to pay for liabilities from their own pocket without insurance footing the bill. On the flip side the main reason for having auto insurance would be to have the means to compensate innocent victims of negligent driving. Without coverage there would be no system to enable a victim of a traffic accident to be compensated for bodily injury, loss of work and other losses.
Most US states require some minimal level of coverage although many states have already chosen to advocate mandatory auto insurance. Premiums for the car will depend on a number of factors like:
* Type of vehicle
* Age of covered drivers
* Driving history of covered drivers
* Primary areas car is expected to be driven and stored
The level of coverage to the consumer depends on the policy purchased by the consumer. The minimum liability that most states demand is that other people who are innocent victims of an accident involving the consumer’s car are compensated for losses to property and bodily injury. The amount of liability coverage against bodily injury (BI) and property damage (PD) depends on the jurisdiction. Other types of insurance include collision insurance and comprehensive insurance. Comprehensive insurance includes compensation against damages to the car other than from collision. Maryland is one of the many states that mandate auto insurance, Baltimore residents and should purchase a policy at authorized agencies to avert penalty.
