Automobile insurance rules vary from state to state. It is important to understand automobile insurance rules in your state to make certain that you are prepared if you are involved in an accident. One of the first questions you should ask prospective insurance companies is what their automobile insurance rating is. Insurance companies receive a rating based on their financial status. The purpose of auto insurance is to prevent you from having to pay out a large amount of money if you are in an accident — whether you are at fault or not. If the insurance-company takes your premium but does not have the resources or inclination to pay out your claim, you will be in little better shape than if you had no coverage at all.
» Read more: Automobile Insurance Rules – Ratings and Rules of Automobile Insurance