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Friday, May 1, 2009

Auto Insurance - The State Will Not Let You Venture Out Onto The Public Street Without It

By William Hazelhurst

In virtually all countries and in all states of the UnitedStates Of America insuring your automobile is compulsory and you must have an auto insurance policy before you are permitted to keep or use a motorized vehicle on the public streets.

Auto insurance is a type of insurance plan that is bought to protect you against a variety of events related to the use and ownership of a vehicle and it gives you coverage particularly if you are involved in an accident leading to damage and injury.

Many people are unhappy with the fact that auto insurance is compulsory but this is necessary to protect the interests of third parties and is also something that anyone who has ever had a road traffic accident is very glad that they had to buy before venturing out onto the road.

Auto accidents can be extremely expensive when you take into account the cost of repairing your own vehicle or that of another driver in an accident. But, the real value of an auto insurance plan comes when either you or somebody else is hurt as a result of a car accident. The price of medical treatment nowadays can literally bankrupt you without insurance cover and even a seemingly simple accident could land you with a debt that you might otherwise never pay off.

In most cases insurers operate a no-fault system which sees that costs are paid according to how fault for an accident is apportioned. This means, essentially, that your insurance company will meet the costs regardless of who is at fault and will then sort out recovery where necessary with the insurance company of any other party involved. You do however need to be careful when taking out auto insurance as there is ordinarily a limit to the insurance company's liability.

You should also bear in mind that there are different forms of auto insurance plan giving you different levels of cover. For instance, you can select to insure yourself just against claims from third parties to keep your premiums down or could opt for a comprehensive auto insurance policy which will cover you for just about anything you can think of.

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