A GUIDE FOR NEW IMMIGRANTS IN AMERICA

Immigration Issues

 

THE LAW AT YOUR DOOR

YOUR CAR AND YOU
Driving Without Insurance?
Did You Know...
In case of an accident, you will spend a lot of money from your private funds. If you drive a car without insurance and get into an accident, the law mandates that you post a cash bond of $5,000 to $35,000. Failure to possess liability insurance or to post the bond will result in the suspension of your license for 3 years. Your license will only be reinstated if you obtain insurance for the statutory limit. Furthermore, if you have no insurance, you cannot recover anything in the event that your car is stolen, or destroyed by fire or flood.
Your Insurance Policy: Limits and Liabilities
The major categories of auto insurance are: bodily injury liability, property damage liability, collision insurance and comprehensive coverage.
Bodily injury liability covers the owner for damages he may have to pay for injury or death to others resulting from the negligent operation of his vehicle. Property damage covers damages to the property of others caused by his car.
Collision compensates the owner for repair of his own car damaged in an accident, no matter who is at fault. Comprehensive coverage, on the other hand, pays for damage to the car from causes other than collision such as theft, fire, and flood.
Your insurance coverage should be large enough to cover large claims. If your liability insurance is $20.000 and the court awards $40.000 for medical expenses to the person injured by your car, you must pay the additional $20,000 from your own pocket. It is therefore always better to buy more than the statutory limit in insurance because the limit may not be sufficient to cover the risk. You should check with your insurance company to find out the cost of additional insurance. If your car is damaged by a car driven by another driver, that driver's insurance will pay for the damage to your car. If the damage is due to your own negligence, your insurance will be pay. If, however, your car is damaged by a car driven by an uninsured driver, your insurance will cover the cost of the damage, provided your policy includes such coverage.

By Nicoline Ambe-Ndiforchu, Ph.D.