Personal Auto Insurance

Under U.S. laws, injured parties are entitled to compensation for bodily injury or property damage resulting from automobile accidents that are the fault of other motor vehicle operators. The Tort Liability System, which is based on negligence, is the most common method of seeking compensation for persons injured in automobile accidents. If a driver operates a motor vehicle in a negligent manner resulting in bodily injury or property damage to another party, the driver may be held legally responsible for the damages incurred by the injured party. 

In some circumstances the owner (or any person in control) of a motor vehicle driven by another party can be held legally responsible for bodily injury and property damage resulting from the driver’s negligent acts. For example, a parent or legal guardian may be liable for an accident caused by a child if the parent failed to supervise the child or was negligent in entrusting a vehicle to the child. You need not be a negligent driver to be sued as a result of a motor vehicle accident. Simply owning a car exposes you to a potential loss. 

Most states have enacted compulsory auto insurance laws that require automobile liability insurance for all motorist to drive within the state. In lieu of auto insurance, a motorist can post a bond or deposit cash or securities to guarantee financial responsibility in the event of an auto accident. Financial responsibility laws require motorist to provide evidence of their ability to pay for any injury or property damage they might cause as a result of owning &/or operating a motor vehicle. Motorist who fail to provide the required proof of financial responsibility can face suspension of their driver’s license and vehicle registration.