Auto Insurance

Automotive Insurance in USA is designed to cover risk of loss of vehicle or cover the damage done to the vehicle if the vehicle is involved in any collision or accident. Some states require motor vehicle owner to carry some minimum level of liability insurance, however there are certain states such as Virginia, New Hampshire and Mississippi do not require motor vehicle owner to carry any insurance of their vehicle. A motor vehicle owner often pays a monthly fee to the insurer known as insurance premium. However, it must be noted that amount of premium to be given by the owner is determined by the factors such as the type of the covered vehicle, location, gender of the vehicle owner etc.

A Brief History of Car Insurance

LWith The invention of the automobile in the late 19th century, there came a risk of loss or damage of the vehicle in accidents. Moreover, with the increase in the automobiles on the road, the frequency of their accidents also increased considerably. However, at that it was felt that like other such things or incidents automobiles also needs to be governed by laws, but still by following and making certain laws one loophole was left behind, that is, how to cover for the loss or damage done to the vehicle. At this moment need for such an organization or company was felt, which can compensate in the form of money equal to the loss or damage done to the vehicle in case of theft or any mishap to the vehicle owner. This led Massachusetts and Connecticut to create the first insurance law in USA.

auto insurance

Cheapest Auto Insurance

It’s very tough to find the cheapest and the best insurance policy for our automobile or vehicle because it has become necessity that we must insure our vehicles but it is also necessary that we must look for that insurance policy for our vehicle that is considered to be the best and the cheapest auto insurance. However, the two points contradict each other, that is, the best and the cheapest auto insurance – these two are like two sides of the same coin but still we can look for cheap car insurance by having look at the quotes from different insurance companies and then by comparing them. This will help us to find a better insurance policy for our vehicle.

Why We Must Have Auto Insurance?

There is a risk of nonpayment in car accidents and compulsory auto insurance is the best way to deal with this risk, so to cover all such other risks we must have insurance for our vehicle.

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