In US there states that do not require you to have a car insurance. While there some states car insurance is mandatory. For the states where it is mandatory to have auto insurance you must carry it all the time and provide it while having car registration. Buying car insurance is quite complicated process and may be expensive to people who live in areas that car theft in endemic. Read on to know the type of insurance that you should have if you are in the states that require you to have car insurance.
Types of auto insurance required
In the US auto insurance required may include the following:-
- Liability insurance
In most states it is compulsory to have liability insurance. Liability insurance helps cover the damage you cause to someone’s property and bodily injuries. Different states have set minimum limits for liability insurance. For instance when your liability after an accident exceeds your amount of insurance then your personal properties will be used in paying for the damage.
- No-fault insurance
It is compulsory in some states and it is paid when you sustain bodily injuries from an auto accident. It is paid regardless whether you are not the one on fault. It is also known as personal injury protection. Depending on the policy you have it may also pay for all of your health bills.
- Collision insurance
This cover protects you from damage that is caused by you to your own vehicle irrespective of who was responsible for the damage. It usually has an excess where the higher the excess the lower the premium. This cover is quite necessary when you have been leased or lent a car in the US. If you have bought your own car then the value of your car will help you to know whether it is necessary to take the cover.
- Uninsured motorist insurance
If you want to protect yourself from uninsured motorist and hit and run accident then you should take the uninsured motorist insurance. The uninsured motorist law has been enacted in many states. In most states driving without auto insurance is derisory and there may be no penalty unless one is involved in an accident. This cover is quite important since most drivers are uninsured and when you are involved in an accident and the other party is uninsured it can be quite expensive for you to cater for the expenses. There is also underinsured motorist insurance that covers you when another motorist has insufficient insurance to compensate for the damage they have caused you.
- Comprehensive insurance
The cover helps you to protect your vehicle against loss that is resulting from fire, theft, falling objects, riots and explosions. One thing that you should put in mind is that it does not cover you against accidents that involve other cars. It is mandatory when borrowing a car or when being leased one.
The insurance covers discussed above they are covers that are considered important in some of the states where one should have auto insurance. There some of the auto insurances that have been left out since they are not necessary. Remember to talk to your insurance agent to get more information since different insurance companies have variability in their policies.