• Home
  • Customer Service
  • Refer a Friend
  • About Us
  • Location Map
  • Employee Directory
  • Privacy Policy
  • Contact Us
Call Us (855) 935-1233 Español
Quantum ALliance
  • Main Menu
  • Agents
    • Become An Agent
    • Agents Page
    • Personal Auto Login
    • Homeowners Login
    • Agent Forms
    • Policy Forms
  • Customers
  • File A Claim
  • Make A Payment
  • Manage My Policy
  • Claims
  • Blog
  • Contact
Auto Insurance AUTO

Auto insurance protects you against financial loss if you have an accident.

Read More
Homeowners Market HOMEOWNERS MARKET

Discover the perfect insurance options to meet your specific and unique needs.

Read More
Roadside Assistance ROADSIDE ASSISTANCE

Learn about different roadside coverage options that fit your specific needs.

Read More
Mexico Insurance CHUBB MEXICO

Finding insurance doesn't have to be difficult. We do the work for you.

Read More
Home > Blog > Explaining Auto Insurance Requirements To Clients
WEDNESDAY, FEBRUARY 5, 2020

Explaining Auto Insurance Requirements To Clients

Couple Meeting With Middle-Aged Agent

Some drivers know they should have insurance, but they're not sure how much insurance they need or why they need it. The process of purchasing insurance is a hassle in itself. And you want to make sure your clients know what they're getting into and how their coverage works to avoid misunderstandings in the future.

First, it's important for clients to understand that car insurance requirements vary by state. Texas, for example, requires higher rates of insurance than a lot of other states. Texas auto insurance requirements are:

  • $30,000 in bodily injury liability per person
  • $60,000 in bodily injury liability per accident
  • $25,000 in property damage liability

By comparison, Arizona requires:

  • $15,000 in bodily injury liability per person
  • $30,000 in bodily injury liability per accident
  • $10,000 in property damage liability

Florida only requires:

  • $10,000 in property damage liability
  • $10,000 in personal injury protection

Liability insurance is required to protect others on the road in case the insured driver causes an accident. In most states, the driver who causes the accident must pay for the damages. Liability coverage steps in to help pay for those damages if at-fault driver can't pay out of pocket. With expensive medical and repair bills, it's rare a driver can pay out of pocket for all these expenses.

Explaining No-Fault Insurance vs Fault Insurance

Most states are fault states, meaning that the driver who caused an accident must file a claim with their insurance company. In a no-fault state, each driver must pay for or file claims with their insurance agency who caused the damages. This is why it's common for no-fault states to require personal injury protection (PIP), which provides medical expense compensation for the insured and their passengers.

The 12 no-fault auto insurance states are Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, Minnesota, New Jersey, New York, North Dakota, Pennsylvania and Utah. Some states also require uninsured/underinsured motorist coverage, but this can often be waived. Uninsured/underinsured motorist coverage provides compensation if the driver crashes with a motorist who doesn't carry adequate auto insurance.

There is also a system called tort liability, which doesn't place any limits on lawsuits concerning an accident, regardless of auto insurance.

It's important to explain that the minimum requirements may not be enough coverage for a customer's vehicle. Crucial insurance that isn't required includes comprehensive coverage and collision coverage. Comprehensive coverage provides compensation if the vehicle is damaged due to fire, wind, hail, falling rocks or trees, vandalism or theft. Collision coverage provides compensation for damage done to the vehicle as a result of a collision with another vehicle or object. If your client only has liability auto insurance, they will face paying for repairs to their vehicle directly, which can be thousands of dollars.

How Auto Insurance Works Across State Lines

If your client gets into a wreck in a different state than the vehicle is insured in, they don't need to worry. For instance, let's say your client lives in and is insured in Arizona. They take a road trip to Texas and get in a wreck. Texas has much higher liability requirements than Arizona. Are they still covered?

In short, yes. The insurance company should automatically adjust the coverage to provide the correct amount of coverage so long as the driver is insured according to Arizona state law. Any driver with the minimum amount of car insurance from their home state will have their insurance carry over no matter the varying state requirements.

Make sure your clients understand their state laws and the difference between fault and no-fault auto insurance.

Contact Us

Posted 10:00 AM

Tags: car insurance, auto insurance, quantum alliance
Share |


No Comments


Post a Comment
Required
Required (Not Displayed)
Required


All comments are moderated and stripped of HTML.

NOTICE: This blog and website are made available by the publisher for educational and informational purposes only. It is not be used as a substitute for competent insurance, legal, or tax advice from a licensed professional in your state. By using this blog site you understand that there is no broker client relationship between you and the blog and website publisher.
Blog Archive
  • 2021
  • 2020
  • 2019
  • 2018

  • quantum alliance(37)
  • home insurance(14)
  • auto insurance(13)
  • car insurance(12)
  • commercial auto insurance(9)
  • motorcycle insurance(8)
  • flood insurance(6)
  • business insurance(5)
  • recreational vehicle insurance(3)
  • farm insurance(3)
  • coverage(2)
  • insurance(2)
  • general liability insurance(1)
  • extra(1)
  • mexico auto insurance(1)
  • life insurance(1)
  • mexico car insurance(1)
  • total replacement cost value(1)
  • claim tips(1)
  • quantum alilance(1)
  • selling(1)
  • tips(1)
  • ranch insurance(1)
  • work comp(1)
  • workers compensation insurance(1)
  • quantum aliance(1)
  • claims(1)
  • actual cash value(1)
  • car(1)
  • home security(1)
  • homeowners insurance(1)
  • commercial insurance(1)
  • home(1)
  • compensation(1)

View Mobile Version
Facebook
LinkedIn
Carriers
<Carriers
Facebook Logo
Tweets by QuantumMGA

Resources

Home About Us Blog Make a Payment Privacy Policy Contact Us

Contact Us

icon
  • Mailing Address
  • 2931 Ridge Rd. 106
  • Rockwall, TX 75032
  • _
  • O: (855) 935-1233
  • F: (972) 476-1253
  • E: Marketing@QuantumMGA.com
© Copyright 2020. All rights reserved.
Powered by Insurance Website Builder