Auto Insurance Required By Law
In Missouri auto insurance is required by law of anyone who gets behind the wheel of a vehicle.
Although coverage can include a plethora of options, minimum requirements mandate that financial responsibility be included.
This is called liability and is required in order to renew license plates as well as register a vehicle in the state.
According to the state's Department of Insurance, coverage must include proof that an individual and others are protected in case an accident occurs.
The minimum allowed is 25/50/10.
What this means is that $25,000 would be disbursed for one person involved in an accident, $50,000 would be covered if two or more persons were involved, and $10,000 would cover any damage to another person's vehicle.
Without proof of a valid policy, if stopped for a traffic-related incident, such as for speeding or a DUI, if proof is not provided a citation could be issued.
If subsequent stops, an accident, or failure to provide proof within the given amount of time followed, points could be added to the driving record, supervision could be required, or a license could be revoked and the car could be towed away.
As valuable as transportation is in meeting the demands today's lifestyles, the loss of a vehicle could be devastating.
It's important to remember that the minimum required by law is not necessarily the recommended amount.
This is primarily due to the rising costs associated with medical care as well as the repair or replacement of vehicles.
Should a driver be found at fault during an auto accident, they would be held financially responsible for the difference between the amount covered by insurance and the actual costs.
Therefore, raising the limit is considered good practice, even though premiums will be slightly higher.
An alternative offered by the state is what's called a surety bond where money is held in escrow or providing a real estate bond.
The minimum allowed in a surety bond is $60,000 which is held in a special account should it ever be necessary to use it.
Both of these options are allowed by the Department of Revenue, but are considered highly risky.
In the event of an accident one's home or cash would be used to cover costs.
For many drivers, attempting to understand insurance requirements in the "Show Me" state is difficult, intimidating, and very confusing.
Therefore, it's important to thoroughly understand the requirements as well as work with an individual knowledgeable with state laws.
Although online comparison sites are a good place to start, knowing a local agent can be relied on in the case of an accident can be comforting.
When driving on the road, the unexpected can happen.
This results in hundreds of accidents occurring on a daily basis.
In order to ensure that financial assets are protected, having the right amount of Missouri auto insurance can save much grief.
Although coverage can include a plethora of options, minimum requirements mandate that financial responsibility be included.
This is called liability and is required in order to renew license plates as well as register a vehicle in the state.
According to the state's Department of Insurance, coverage must include proof that an individual and others are protected in case an accident occurs.
The minimum allowed is 25/50/10.
What this means is that $25,000 would be disbursed for one person involved in an accident, $50,000 would be covered if two or more persons were involved, and $10,000 would cover any damage to another person's vehicle.
Without proof of a valid policy, if stopped for a traffic-related incident, such as for speeding or a DUI, if proof is not provided a citation could be issued.
If subsequent stops, an accident, or failure to provide proof within the given amount of time followed, points could be added to the driving record, supervision could be required, or a license could be revoked and the car could be towed away.
As valuable as transportation is in meeting the demands today's lifestyles, the loss of a vehicle could be devastating.
It's important to remember that the minimum required by law is not necessarily the recommended amount.
This is primarily due to the rising costs associated with medical care as well as the repair or replacement of vehicles.
Should a driver be found at fault during an auto accident, they would be held financially responsible for the difference between the amount covered by insurance and the actual costs.
Therefore, raising the limit is considered good practice, even though premiums will be slightly higher.
An alternative offered by the state is what's called a surety bond where money is held in escrow or providing a real estate bond.
The minimum allowed in a surety bond is $60,000 which is held in a special account should it ever be necessary to use it.
Both of these options are allowed by the Department of Revenue, but are considered highly risky.
In the event of an accident one's home or cash would be used to cover costs.
For many drivers, attempting to understand insurance requirements in the "Show Me" state is difficult, intimidating, and very confusing.
Therefore, it's important to thoroughly understand the requirements as well as work with an individual knowledgeable with state laws.
Although online comparison sites are a good place to start, knowing a local agent can be relied on in the case of an accident can be comforting.
When driving on the road, the unexpected can happen.
This results in hundreds of accidents occurring on a daily basis.
In order to ensure that financial assets are protected, having the right amount of Missouri auto insurance can save much grief.
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