The United States Auto Insurance Industry

The auto insurance industry is one of the largest industries on the country. A multi billion industry, the Unites Stated insurance industry insures millions of cars against liability, negligence and theft. Car insurance is mandatory in most states. The insurance is mandated by law to protect drivers but also keeps drivers from losing their cars. It also helps drivers pay for their repairs and medical bills. Auto insurance is enforced through local law enforcement efforts.

Different Types of Auto Insurance

There are two are basic forms of insurance. Comprehensive insurance and liability are the two most common types of insurance. They differ in cost and coverage. Comprehensive insurance is usually mandated by banks when you are financing a new vehicle. It will cover the car in most of the things that can happen during the term. Liability insurance only covers others in the event you have an accident.

There are penalties when someone does not have insurance. The penalties will vary from state to state, but can result in heavy fines, revocation of car registration and even suspension of driving license.

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