Kelly Osbourne: I would like to know the minimum auto liability limits for drivers in Alaska and other states. What is financial responsibility and which states have that?

Response: Alaska and Maine mandate the highest minimum auto liability limits for drivers within each state. Both require drivers maintain at least 50/100/25 limits. Florida and Louisiana (but only through 2009) allow the lowest minimum auto liability limits at 10/20/10; however Louisiana is raising its minimum limits to 15/30/25 effective January 1, 2010. (One major difference between Florida and Louisiana is “No Fault” status; Florida is a personal injury protection (PIP) state where Louisiana is a compulsory liability state.)

The remaining states fall in between these two extremes with the two most common minimum limit requirements being 25/50/10 and 25/50/25 – both applicable in 12 states each. The most unusual minimum limit requirement may be that of Ohio at 12.5/25/7.5. Further, two states require their insureds carry only $5,000 in property damage protection. Auto liability limits are anything but rational or consistent throughout the country.

Forty-nine states and the District of Columbia maintain compulsory liability insurance requirements. New Hampshire will be the sole remaining voluntary financial responsibility state once Wisconsin’s compulsory liability law takes effect June 1, 2010. Although not a compulsory liability state, New Hampshire is a compulsory uninsured motorist coverage state.

You need to ensure that you have the correct auto insurance coverage. Review auto insurance policy  once you get it and compare auto insurance coverages especially the liablity coverage to see if it meets the required State limits.

Jennifer : What is a Loss damage waiver?
Response : This is a auto insurance coverage that can be opted for and is applicable for a rental car. This coverage is also referred to as a collision damage waiver outside the US. n LDW is not technically an insurance product. LDWs do, however, relieve or “waive” renters of financial responsibility if their rental car is damaged or stolen. In most cases, waivers also provide coverage for “loss of use,” in the event the rental car company charges the renter for the time a damaged car can not be used because it is being fixed. It may also cover towing and administrative fees.

Waivers, however, may become void if the accident was caused by speeding, driving on unpaved roads or driving while intoxicated. If you already have comprehensive and collision coverage on your own car, check with your personal auto insurer to make sure you are not duplicating coverage you already have. Should you decide it is necessary, this coverage generally costs between $9 and $19 a day.
Compare your auto insurance coverage before you opt in for a new coverage or buy auto insurance so that you get the right coverage at the lowest rate. Review your auto insurance quote from time to time.

Robert: I was hit by a negligent driver and I was not covered under auto insurance for the car I was driving? What should I do?

Response : If you have been injured by a negligent driver than you can definitely file a suit against the negligent driver for his suit. You will be awarded a benefit depending on the nature of your injury, and in proportion to the amount of fault assigned to the other driver. The other driver can also claim some benefits if some fault is assigned to you if he or any passengers in his vehicle are injured or the vehicle is damaged.

However, you will be penalized for not having an insurance policy depending upon the state laws and provisions, since most states require certain limits for auto insurance which are mandatory. If you are living in a state where insurance or your financial responsibility is allowed than it would work in your favor if you can prove that you can meet the financial responsibility. Since you do not have any insurance you cannot file a claim and so you will have to pay out of your pocket.

Roberta, I strongly recommend that you to have your auto insurance coverage. Please compare auto insurance quotes. Review the car insurance quotes, and coverage’s. I assure you, that you will find cheap auto insurance rate.
Thanks.

Kamlesh