Showing proof of car insurance is mandatory in most states of the USA, especially where having car insurance is obligatory. It is also essential to carry the insurance documents in the car. It is a much more complicated process to purchase car insurance in the USA as compared to other nations. The following types of coverage are provided with the insurance:
Comprehensive Car Insurance
The vehicle’s loss, occurring due to accidental glass breakage, falling objects, earthquakes, explosions, riots, floods, storms, collisions with animals, vandalism, theft, fire etc. is covered by comprehensive car insurance. Accidents that involve other objects or vehicles aren’t covered by this; instead, a collision cover is required.
Collision Car Insurance
When your own vehicle is damaged by you, collision cover is needed, and in this case, the person responsible for the damage is not an issue. Usually an excess is included in the collision cover; your premium’s rate is lowered by the higher rate of the excess. The collision cover is decided by the car’s value. Usually a leasing or car loan company requires comprehensive and collision car insurance coverages.
Uninsured Car Insurance
Uninsured car insurance should be acquired by you for protecting yourself against hit-and-run accidents or other uninsured motorist related accidents. Many states have enacted laws of uninsured car insurance, in which there is a requirement to include the basic policy cover by the insurance companies for opposing uninsured motorist related accidents. Uninsured cover, like minimum limits of financial responsibility, is requested by the state and some states even make it mandatory. Uninsured car insurance is not needed if you have collision insurance.
Not having car insurance while driving can lead to you having a penalty, which is quite significant in many states. If there is no occurrence of accidents, a penalty is not applicable. The number of uninsured vehicles may surprise you, when you compare high insurance premiums with meager financial penalties.
Under-insured Motorist Insurance
Like uninsured car cover, the responsibility of another motorist is covered by the under-insured car insurance; but there is a shortfall in your property’s damage or injury coverage.
Catastrophic Medical Expenses Insurance
Catastrophic medical expenses cover is offered by a number of insurance companies, by which you’re protected from unusually high medical bills. Having this insurance is based on your health insurance level. Having catastrophic medical expenses cover is advised for you if there is a limitation on it.
PIP Medical Expenses Insurance
In this case, only the medical expenses of the Personal Injury Protection cover are able to be paid out. A medical expense of any person who was injured while being in your car is paid for by the PIP medical expenses; the fault is not counted in this case. Based on the policy, your medical bills may also be paid by this if a car hits you when you’re walking, or if your family members or you are in someone else’s car. Without co-payments or excesses, all medical expenses incurred are paid by this vehicle-related medical policy, which is not like other health policies.
This protection is not required if a comprehensive health insurance is available to you, even though anybody traveling in your car is covered by it. The provider, unlike with a car insurance company, for your PIP health insurance can, in a number of states, be chosen by you.
No-fault insurance law is in place in almost twenty-five states of the US, as well as in the Columbian Districts. Thus, instead of your involvement in any accident, personal injury sustention can be claimed by you from your personal car insurance company, instead of attending court to prove the fault of another party. A claim needs to be filed against another party in states having the no-fault law, and, in this case, the injury of another driver is not counted, and the payment is made once the responsibility of that driver is proved.
It is mandatory to have PIP insurance where appropriate and only in the case of physical injury, but the damage to the vehicle is not covered by this. From the personal car insurance company, a prompt payment is received by those having PIP insurance, but there is a limitation for them to take legal action for common damages. The policies are automatically extended by most insurance companies to cover the no-fault law based states.
Disability or health related insurances may be duplicated by PIP coverage. Hospital and medical cost-related benefits are provided by PIP insurance, as well as expenses for funerals, survivors’ death/loss benefit, essential/replacement services, income continuation or lost wages. The allocation of replacement services or lost wages is based on a maximum limited amount and time period.
Physical injury liability is included in the liability insurance, i.e. liability in the case of damage to the property, including the vehicles of others or injury caused to somebody else. Having liability car insurance is mandatory in most states; although unlimited liability is not usually included with it. If the amount of your accident’s liability is exceeded and you have personal possessions, the damages are paid by these, even until your bankruptcy, if required.
From the above-mentioned car insurance policies, it can be said that car insurance should be chosen based on your position and situation or area, and once you have become aware of all the different types of cover.