by C. L. Easey

Created on: November 06, 2008   Last Updated: January 25, 2009

There are pros and cons to any argument about the best way to provide automobile insurance for drivers. Typically, the objective of insurance is to indemnify a policyholder after there is a loss due to some sort of accident. Requiring insurance on the vehicle is effective because most if not all states require insurance coverage on all passenger vehicles, some states have instituted various types of no-fault insurance laws, and drivers are generally protected because of liability coverage on their insurance policy. An automobile insurance policy by default provides protection to the driver as well as for damage to their vehicle.

In most if not all states driving without insurance will result in a traffic violation. As a result drivers are required carry to carry some form of insurance on their vehicle. Unfortunately, the amount of insurance a driver decides to purchase may or may not be sufficient for the type of vehicle being driven. Many times an individual will just by the cheapest insurance they can get. As a result, the limits on a policy with low coverages or limits may not be enough to cover the medical and other costs that can occur when there is an accident. There are some states that require or are increasing the minimum liability limits that need to be carried on an automobile insurance policy..

No-fault insurance was designed to have each driver's insurance company pay for damages no matter who is at fault. There is also a limitation on a driver's ability to sue the other driver that is involved in an accident for damages. There are pros and cons to this type of insurance. Keep in mind however, that the person that caused an accident will either get a ticket or end up with increased insurance rates or both. Unfortunately, the other person involved in an accident will probably end of with a no-fault accident that shows up on their motor vehicle report. Many insurance companies penalize drivers that have multiple no-fault accidents by raising their rates.

All automobile insurance policies carry various liability coverages which are standard on automobile insurance policies. Liability limits are designed to protect a driver against injury and damage that they cause to another in an automobile accident. This is also known as bodily injury liability and property damage liability. This is one coverage that individuals may try to save a few bucks by carrying low limits. Individuals that choose to lease vehicles generally do not have a choice and are required to have a specific minimum amount of liability insurance on their vehicle. What many individuals fail to realize is that these coverages are what protects the driver in case of an accident they cause.

While arguments can be made for and against insuring only the driver insurance it is probably not a great idea. Insurance policies by default provide protection to drivers as well as damage to their vehicle. Having insurance specifically for the driver is impractical because insurance companies use driver history as well as the type of vehicle being insured to determine the premium being paid.

Learn more about this author, C. L. Easey.
Click here to send this author comments or questions.