States require car insurance {automobile insurance}. Most people should have {coverage, insurance} liability, uninsured motorist, and medical payments insurance. Liability and comprehensive insurance cost depends on principal driver's driving record, age, sex, and marital status. However, insurance insures car, so insurance covers anyone driving that car with owner's permission.
All states have laws {financial responsibility law}, requiring car owners to show that they can pay for damages if in automobile accidents. If owners cannot pay damages, state revokes license and registration. Drivers should have $100,000 insurance for one injured person, $300,000 for all injured people, and $50,000 for all damaged property, in one accident.
Automobile insurance {liability insurance, car} can pay for damages to people or property in accidents that are driver's fault. Most states require that people have minimum liability insurance for damage to one person, all people, and property.
Insurance {medical payment} can pay up to a limit for minor-injury treatment received in accidents.
Drivers can have insurance company pay for injuries to self or passengers and for damages to car or property, without need to determine responsibility {no-fault insurance}. It allows faster claim settlement and reduced legal costs to insurance companies. Variations on no-fault insurance allow companies to determine fault. One pays for everything. Another allows premium increase after driver is in an accident. People can file lawsuits for additional damages.
Insurance {theft insurance} {damage insurance} can reimburse for theft, vandalism, flood, and windstorm property loss or damage.
Insurance can pay expenses up to a limit in accidents caused by drivers {uninsured motorist} who have no insurance and cannot otherwise pay.
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Date Modified: 2022.0225