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Carrying Auto Liability Insurance: A Must for Drivers in the US

One important document that drivers in the U.S. will always need to carry is proof of auto liability insurance. This document is required every time a driver renews his or her car registration and driver’s license, and if ever he or she gets pulled over by a traffic enforcer or gets involved in an accident. In the 48 states where carrying this liability insurance is mandated, not having one can result to suspension of driver’s license and being required to file an SR-22, a document which proves that a driver has already purchased vehicle liability insurance; this document will have to be sent by the insurance firm to the state’s Department of Motor Vehicles (DMV) office where the driver resides.

Carrying auto liability insurance is actually just one way a driver can comply with the financial responsibility law, the law that requires drivers to prove that they have the capability to pay for damages and injuries resulting from an accident wherein they are at fault. While this law does not specifically require having auto insurance coverage, as many as 48 states saw that having one would be more practical as this will not result to at-fault drivers failing to make compensatory payments to those that they happen to injure. (Virginia and New Hampshire allow their drivers to prove financial responsibility through state-approved ways other than purchasing auto liability insurance).

With regard to the type of insurance coverage mandated of drivers, states are divided based on the type of the liability system that they recognize. In 12 states, which include Florida, Michigan, New Jersey, New York, Pennsylvania, Hawaii, Kansas, Kentucky, Massachusetts, Minnesota, North Dakota and Utah, the no-fault auto insurance law is observed (of these 12 states, three are more correctly referred to as “Choice” states because these allow drivers to choose which type of insurance coverage they would actually want to carry: the no-fault coverage or the “fault”/“tort liability” coverage). Under the no-fault system, insurance companies compensate their own policyholders (policyholders are otherwise referred to as “first party”) regardless of who was at fault in the accident. The damages or the benefits that are to be paid to policyholders or to the first party are called personal injury protection (PIP).

The “fault” system, on the other hand, allows accident victims to claim compensation from the at-fault driver’s insurance provider; victims, however, may also file a civil lawsuit against the at-fault driver if the compensation paid does not cover certain economic (lost wages) and non-economic (pain and suffering) damages.

An insurance policy being quite costly is no excuse for drivers not to purchase one. As Hankey Law Office, P.C. explains in its website, not purchasing one may actually prove to be even more costly. The website also provides information on how drivers may find the best insurance deals at the lowest cost – by asking for a free insurance quote from an independent auto insurance company. Besides providing drivers with a list of the best insurance deals at affordable prices, an independent auto insurance company can also assist drivers in all their insurance-related needs, including the filing of an SR-22.

Is SR22 Insurance Really That Necessary?

In order to understand if SR22 insurance is necessary for you, there is a prior need to first understand what SR22 insurance actually is – and it isn’t an insurance policy, despite what the name might imply.

SR22 insurance (sometimes called FR Filing) is necessary documentation in order to prove that your vehicle is insured and that you can be held financially responsible for your actions. It does not, in any way, replace a regular insurance policy for a vehicle in any way.

When is it necessary? That can be a bit more complicated.

It is made legally mandated for you to acquire SR22 insurance if you have incurred too many smaller infractions (such as three moving violations within a 12-month period, for example) or if you have been involved in one somewhat major incident such as one involving driving with insurance or driving while under the influence of dangerous substances. This kind of certification is necessary in order to provide proof that says that the state is allowing for you to be on the road again.

After all, these means of transport are practically a necessity in this day and age. Securing permission to be allowed to drive on the road again may be a matter of being employed or being homeless – and, funnily enough, most people tend to favour the former option rather than the latter.

It can be difficult to secure this kind of documentation however as insurance companies can regard marks like this on your driving record as risks and have a few options at hand, one of which is to deny you of a policy outright or charge you outrageously high rates. There are, fortunately enough, agencies out there that can help you navigate through the options that you have and allow for you to secure the policy and SR22 insurance that you need. For more information about SR22 insurance, contact your local car accident lawyer.

The Importance of Reliable Insurance

Insurance works as a cost-sharing means made to limit the financial risks from anything unexpected that could result to a significant loss.  Disasters, accidents, and other issues can happen to anyone at any time, therefore having prepared for it (at least financially) can ease you and your family’s mind and make you more ready to start over again. Insurance covers a number of things, from health, to auto insurance, business insurance, and residential properties insurance. It helps to know which type of insurance coverage you need and what will work for you.

For homeowners, having residential property insurance is more than security; it is the greatest investment that they could get. It covers for any renovation that the house needs to have, provided it is within the scope of the policy coverage you have agreed on. It also protects you or anyone in an event of an accident that occurred within your property, such as a slip and fall accidents or animal attacks. Any injury that happened within your premises can be covered by residential property insurance. Belongings and high-end items are also covered by homeowners insurance, but it would be a better option to have property insurance with liability insurance. This ensures that any risks will be covered by the insurance. When disaster does strike, it is important to file for a homeowner or residential property claim in order to acquire financial help from your insurance company. Getting the help of a lawyer for consultation or representation would make the claim faster to process.

Insurance can be used for a home that was damaged due to a fire or natural calamity, an auto accident due to another driver’s recklessness, or an injury that resulted in death. As long as you have signed up and paid for an insurance coverage, you and your family will be protected from losses that could happen.