Who Is In Charge Of Regulating The Auto Insurance Industry?
State government is in charge of regulating the auto insurance industry. Many car insurance companies are kept in line with the rules and regulations passed down by the government. The laws that are passed down also help to protect everyone that is driving today.
Many states require that you have at least auto liability if you want to drive your vehicle. If you do not have auto liability and get caught you can have your vehicle towed and put into lock up until you can show proof of insurance. State and local police agencies help with the enforcement of the rules that the state sets.
You can be pulled over for one thing only to get a ticket for no insurance should you not be able to show proof that you liability insurance. Auto policies have guidelines that must be adhered to. The state agencies set them and law enforcement enforces them.
If you do not know the basics of your policy it is a good idea to read over it. You need to find out what you can be covered for and what you will need to pay for yourself. If you do not understand your policy then discuss the unclear portions with your agent.
The federal government can step in and make changes if it is felt that intervention is needed. If they were to make a judgment though then it would have to be followed in every state not just the ones who choose to enforce it.