Frequently Asked Questions
What is auto insurance?
Auto insurance, also commonly known as car insurance, motor vehicle insurance, gap, or gap insurance is a type of insurance purchashed for road vehicles (cars, trucks, motorcycles, etc.). Motor vehicle insurance is primarily purchased to financially protect the policy holder in the event of a collision resulting in bodily injury or many types of physical damage. It may also protect against liability incurred from a collision.
Do I need motor vehicle insurance?
If you drive, you most likely need some form of auto insurance. Regulations are not universal, but most vehicles are required to be insured. If you live in any US state other than Virginia, you do need at least a minimal insurance policy. Car insurance is compulsory in very state except for Virginia. In Virginia, residents must pay an annual fee of $500 per vehicle if they don't have liability insurance.
New Jersey and California have "Personal Responsibilty Acts" which encourage all drivers to buy liability insurance by disallowing uninsured drivers from recouping non-economic damages if they are injured in a vehicle collision in which they were a driver.
Liability insurance is often required, but isn't necessary in all states.
