To legally drive in all states, you must have auto insurance. Auto insurance protects you from the financial cost of an accident or injury and driving without insurance will result in severe penalties. If you are a new driver, you should understand how auto insurance works.
Many are no-fault states, which means that you need to carry Personal Injury Protection (PIP) on your policy. If you or someone in your vehicle are injured in an accident, this will cover the medical expenses, lost wages, and any replacement services necessary. This would be paid no matter who is at fault.
In states like Minnesota, you are required to carry a minimum no-fault coverage of $40,000. This amount is divided between $20,000 for medical expenses and $20,000 for non-medical expenses. If you believe that you will need more coverage, you can purchase a policy based on the level of coverage that you need.
If you are in an accident, the claim would be made on your own insurance. If you weren't at fault and the expenses related to the accident are greater than the limits on your policy, you can make a claim against the other driver's insurance to cover the rest.
Driving without insurance is against the law, and there are harsh penalties involved if you get caught. For your first and second offense, you will be required to pay a fine between $200 and $1,000. If you cannot afford the fine, you could be able to do community service instead. You will also have your license and registration suspended for 30 days. When you get your license back, you would be required to pay a $30 fine and purchase SR-22 insurance.
For a third offense or more, the fine can be between $200 and $3,000. If you cannot afford the fine, you can ask for community service and up to 90 days in jail. Your license and registration will be suspended for one year, and you would need to pay a $30 reinstatement fee and purchase SR-22 insurance.
If you are a new driver and need auto insurance, Brothers Wood Agency can help. Our agents can help you purchase a policy with the level of insurance that you require. To get your policy started, contact us today.
While our offices are located in Savage, MN and Fort Mill, SC, we do commercial insurance business nationwide and offer personal insurance business in MN, SC, NC, WI, NM, TX and FL.
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