Get Ready For A New Insurance Law

Do you know new rules on auto insurance coverage may take effect starting from June 1st. May be now is a best time to check your insurance policy.

The new law, which was passed in the last legislative session, mandates that all drivers to have auto insurance and sets a minimum liability level insurance that must be carried.

The new law also have instructs that drivers must have proofs of insurance available in case they are stopped by police when they violate traffic rules or if they are involved in a car accident. If they are not found not having an auto insurance, then a fine of $200 could be slap at their face and for those who cannot immediately show proof of their insurance will get a fine of $10. Local governments, however, are given the freedom to set their own enforcement rules as well as fine structure.

One easy way to have insurance proof is to put the card that insurance companies offer, which shows that the premium is paid in the center console or the glove compartment.

While checking the policy, just check the level of coverage provided.

All motorists are required to have at least $50,000 as coverage in bodily injury for one person and per accident in bodily injury coverage must go up to $100,000. A property damage coverage of $15,000 is also required. A sum of $100,000 per person as well as $300,000 per accident must be kept for under-insured and uninsured motorist coverage.