Your state may requires all drivers to have insurance; those caught without insurance and convicted of no insurance, your license plates will be suspended and you will face the following fines:
minimum $500 fine for driving uninsured
minimum $1,000 fine for driving a vehicle while the license plates are suspended for a previous insurance violation*
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How Auto Insurance Works The auto insurance that you choose is a contract between you and the insurance company. You pay the premium and in return the insurance company provides you with the reliability you need, such as covering your costs if an accident occurs.
There are many different types of auto insurance with varying degrees of coverage to choose from. Types of coverage include:
Standard automobile insurance
Commercial vehicle insurance
Insurance for recreational vehicles like boats and motorcycles
All states require that you purchase a minimum amount of automobile insurance and if you are financing a car, your lender may also have insurance requirements. Make yourself familiar with the local laws and regulations dealing with automobile insurance in your area before choosing a policy.