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Life in the USA Transportation The Automobile
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Automobile Insurance
Automobile insurance is mandatory in all states. You must purchase a minimum amount of liability insurance in order to be able to register a vehicle so that if you injure someone and cannot pay for the damages, that person can be compensated by the insurance company. The rates for liability insurance vary from state to state and from city to city. Young people pay more than older people. You shop for auto insurance just like you shop for anything else. In addition, you have the option to buy collision insurance, which covers repairs to the car's body if there is an accident, and theft insurance. It's all expensive. With every type of automobile insurance, especially liability, your rates will go up, and you can even become “un-insurable,” if you build up a bad record of accidents and traffic violations.
Next Section: Registration and Inspection Transportation: Chapter Home
Life in the USA Home
Page. The URL of this site is: http://www.lifeintheusa.com/transportation/insurance.htm
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