The type of car insurance required by law tends to differ from one state to another. It is important to understand that minimum car insurance is mandatory in almost all U.S. states. Drivers of cars are required to purchase and maintain a particular level of auto insurance in case of an accident occurring and causing injury to someone or damaging property.
Failing to maintain coverage may mean that you are in contravention of the law. Therefore, you must check the particular car insurance minimum legal requirements for your state from the website of the state insurance commissioner. Note that you can always purchase and maintain additional coverage and that depends on your particular needs.
For some states like New Hampshire, Alabama, Mississippi, and Alaska, they offer an alternative to car insurance. A car driver is required to show proof/evidence of financial responsibility which may be in the form of a self-insurance certificate, a deposit of cash with the state, and a surety bond. Consequently, here are some of the common car insurance types that may be available in your state.
Bodily Injury Liability
This type of car insurance serves to cover for the potential injuries that the policyholder or the designated driver causes to another person. When driving a car belonging to someone else without permission, you may be covered together with the family members that this policy has listed.
Property Damage Liability
With this car insurance type, it helps cover for damages caused to a property by a person legally responsible which maybe you or someone you permitted to drive your car.
This insurance covers for the damage suffered because of a collision with another vehicle. It may also cover the damages done to a covered car as a result of flipping over or colliding with another object. Collision insurance is for either replacing or repairing a covered car.
Comprehensive car insurance provides you with an extra level of insurance. It may help in case the damage done to your car has been caused by something else other than collision. This policy insures your car against things such as earthquakes, falling objects, fire, floods, vandalism, hail, windstorms, or accidents with animals.
If you took a car loan, often your lender may request you to have a comprehensive coverage until such a time when the loan is fully paid off.
Medical Payments Coverage/ Personal Injury Protection
The insurance laws of states typically require medical coverage for paying for the treatment of injuries suffered by the driver and passengers in an accident involving an insured car. Medical expense coverage is often required by state laws since usually the medical costs incurred because of an accident can be very expensive.
Personal Injury Protection may cover lost wages, medical payments, or any other costs that result from an accident.
Uninsured and Underinsured Motorist Coverage
Uninsured motorist coverage helps protect you, a designated driver, family member, or your car against drivers that are uninsured and possible hit and run accidents.
On the other hand, Underinsured Motorist insurance comes in handy when the driver at fault does not have enough coverage to pay for the total loss caused.
Having seen the different types of car insurance that may be provided for by state laws and their importance, you should get coverage if you currently do not have car insurance. Car insurance will help protect you from the unexpected.