Auto cheap insurance

Public Policy

In many countries it is compulsory insurance for the purchase of the first car to drive on public roads. In the United States, the penalties for the purchase of car insurance does not vary from state, but often entail a substantial fine, the license and / or registration suspension or revocation, as well as possible jail time in some states. Normally the minimum required by law is third-party insurance for the protection of third parties against the financial consequences of loss, damage or injury caused by a vehicle. Typically, coverage against loss of or damage to the driver's own vehicle is optional - a notable exception to this is in Saskatchewan, where SGI provides collision coverage (less a deductible $ 700), (such as a collision damage waiver) as part of its basic auto cheap insurance policy. In South Australia Third Party Personal insurance from the State Government Insurance Corporation (SGIC) is included in the registration fee of license. South Africa assigns a percentage of the price of gasoline in road accidents in the fund, which goes to third parties for compensation in case of an accident. [1] Most countries relate to both car insurance and the driver, however the degree of each varies considerably.

In the United States, auto insurance is mandatory in most states, even if the application of the requirement varies from state to state. The state of New Hampshire, for example, does not require motorists to carry liability insurance, Virginia, but residents must pay the state a $ 500 annual fee per vehicle if you choose not to purchase liability insurance [2 ].


A 1994 study by Jeremy Jackson and Roger Blackman [3] showed, in line with the risk homeostasis theory that the increase in costs caused accidents large and significant reduction in the frequency of accidents.