There are different types of car in the United States that cover different incidents and involved. A basic policy of auto insurance usually includes six types of insurance coverage to ensure that each driver has just what you need. (We recommend you to visit an insurance agent expert for information specific to your car)
In addition to the six basic types, there are several others that apply to very specific events that can cause damage to your vehicle, or for specific needs that you may have if you have an accident. But with so many types of automobile insurance, how do you know which one is right for you?Types of car insurance in the United States,
the majority of these coverages are optional, and add them to your policy will increase your premium. These are some of the most common coverage auto insurance:
Liability Coverage
Property Damage Liability
Bodily Injury Liability
Coverage Full
Coverage Collision
Coverage for fire and theft
coverage of Physical Damage,
Personal Injury Protection
coverage of Driver Underinsured
Motorist Insurance Coverage
Gap Insurance
Car Rental
Payment coverage per Mile
Liability Coverage
liability insurance does not cover all expenses in connection with the damage to your car, or any injury you may suffer. Pay for the damage suffered by the other parties in an accident you are found guilty. All states require a minimum amount of liability coverage in order to legally drive a vehicle. In some states, you can avoid the purchase of liability coverage if you can verify that you have the personal financial resources to cover the minimum requirements required by the state in which you live. The liability insurance covers you when you're driving any vehicle on your property, or if you are driving the car of another person with your permission.
The responsibility of the Damage
The property damage liability insurance does not cover damage to your property. When you are found guilty of an accident, and if your car has damaged the property of another person. There are various degrees of coverage to determine exactly what damage are covered. You choose the amount of coverage when you purchase the policy, there may be requirements imposed by the State, especially if your car is financed.
The amount of coverage selected will determine the premium that you pay. The property damage liability coverage is one of the types of automobile insurance coverage that may include a deductible. Having this type of coverage protects you from paying out of your own pocket if you plead guilty for damage to the property of another person.
Bodily Injury Liability
If you are found guilty of an accident that resulted in injury to another party, the liability coverage for bodily injury, comes into play. It does not cover your own injuries, or those of any other driver included in your insurance policy. This coverage usually pays: Medical expenses; physical therapy or rehabilitation; the lost work time due to an injury; the legal representation of the other party; funeral expenses; and, possibly, "pain and suffering", which is determined by a court in case of suffering emotional or physical stress resulting from the accident. This is an important coverage to add to your policy. Medical expenses can be very expensive and cause enormous financial difficulties if you have to pay out of your own pocket.
Full Coverage
True to its name, the coverage applies to almost any type of loss that may occur, but not as a result of an accident. This is the insurance coverage that pays for damage to your vehicle caused by something other than another vehicle. It could be anything: damage caused by bad weather, such as hurricanes or tornadoes, hail, or natural disasters such as earthquakes, floods or fire.
It also applies if you hit an animal, or if your car is destroyed or stolen. Even in the unlikely event that something falls on your car and damage it, comprehensive coverage will pay for the repairs. It is advisable to purchase the coverage along with another type of collision coverage to cover the damages resulting from an accident.
Collision coverage
collision coverage is exactly what its name suggests. Is applied when the vehicle is involved in any type of collision with another vehicle, a building, a barrier of protection, or any other fixed object. In some cases, it also covers the damage caused when the car is tipped over, or when you fall on a bump. The collision coverage will pay for repairs to your car after any of these incidents, or replace your car if the collision causes a total loss. Remember that this is the case, you will receive a refund for the current value of the vehicle, not the purchase price.
Fire and Theft Coverage
As its name indicates, this type of auto insurance coverage applies when the vehicle is damaged or lost as a result of fire, or if your car is stolen.
If your car is on fire due to lightning or an explosion, this coverage will pay to repair or replace your vehicle. It also offers other coverages such as floods, earthquakes, hail damage or wind, vandalism or accidents caused by hitting an animal. You can also pay for the damages resulting from an accident with an uninsured driver, always and when you don't have to blame.Types of car insurance in United States 1
Physical Damage Coverage
physical damage coverage is an umbrella under which are three other types of fire and theft coverage, comprehensive and collision coverage. If you are still making payments on your car, it is likely that state law required to purchase at least the minimum amount of physical damage coverage. Once you pay off your car, this coverage may be optional.
Protection of Personal Injury
Personal Injury Protection or PIP is a complement to the liability coverage for bodily injury and covers approximately 80% of medical expenses, including rehabilitation, funeral expenses and loss of wages. This protection covers you, your passengers, or any person authorized to drive your car. It also covers you and any other person named in your policy when driving the vehicle of another person. This type of coverage is mandatory in 16 states.
Coverage of driver with insufficient Insurance
This type of coverage protects you if you are involved in an accident with a driver that leads the legal minimum amount of liability insurance, and does not have an additional insurance to cover all your losses. Applies only when the other driver with insufficient insurance is to blame. This insurance will cover your medical expenses, property damage (in some states), and lost wages. You can also cover the cost of a rented car until you repair your car. This insurance is mandatory in some states.