YOU ASK:
What is the definition of Compulsory Auto Insurance?
WE ANSWER:
Compulsory Auto Insurance, from its name, means that the state requires all vehicles to get insurance for that vehicle to be legally driven on the roads. It states the minimum amount of auto liability insurance you need to get. In the event of an accident, the driver is required to show proof of their ability to pay the damages equal to or more than the minimum prescribed by the state.
The state requires this in order to ensure that you are able to pay for car repairs, compensation for damage and medical bills if you are the one who caused the accident.
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More insurance terms around compulsory auto insurance:
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- Contingent Beneficiary
- Contingent Liability
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- Coverage
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