Auto Insurance is a contract for an automobile in which one party agrees to pay for another party’s financial loss resulting from a specified event (for example, a collision, theft or storm damage).
The requisite coverage levels in each state vary tremendously, while almost all 50 states have mandatory minimum insurance requirement. In states where there are no mandatory minimums, the law requires drivers to prove financial responsibility. The repercussions for failing to comply with car insurance laws also differ significantly by state. Noncompliance may result in fines in one state and license revocation in another.
There is geographic disparity in auto insurance laws which is to be looked into before purchasing a policy. The type and amount of coverage will depend heavily on where you live. You will need to comply with the unique regulations of your state.