The major difference between auto insurance risk and the risk associated with life insurance is that, while you can only die once, you can have many auto accident claims. And the details can be far more varied, with losses for things like liability, medical payments and physical damage.

If you are involved in an auto accident or stopped by a police officer and found to be driving without car insurance or proof of financial responsibility, you will be subject to penalties specific to the laws of your state.

Yes. Since most states require auto insurance of all drivers, the states have assigned risk plans to assure coverage if you are unable to find an insurance company willing to accept you.

If your state requires you to have auto insurance in order to drive, you may be faced with a dilemma if insurance companies won't accept you.

You and the family members, friends and associates that you let borrow your car are all covered by your personal auto policy. Explicit permission is not required each time they borrow your car.

Though it helps, having car insurance does not stop anyone from suing you. It does provide the assurance that, if you are sued as the result of an automobile accident, the financial and legal resources of the insurance company will assist you in defending against the suit and paying any resulting damages.

Auto insurance is a contract with an insurance company that can protect you against severe financial loss if you are ever in an auto accident. Varying types of coverage act as a ?bumper? against various accident-related expenses, like liability, medical costs, damage to vehicles, and property damage.

States that do not require you to have insurance require a demonstration of financial responsibility, which could include demonstration that you have sufficient assets to settle any judgments against you that may arise out of an accident. After an accident, you may be required to post a bond if you do not have insurance.

It depends on how you feel about potentially being unable to sue for pain and suffering damage if you are in an accident (no-fault). Some no-fault states, however, have low thresholds for suing, so, in those states, you may be able to reduce your premiums somewhat without giving up the ability to sue in most accidents.

The fault for an accident is not always placed squarely on one participant; one party is not necessarily held totally at fault and the other totally blameless. After determining the percentage of fault by each party, the compensation by the insurance company is adjusted accordingly.