Types of Auto Insurance in the USA

While predicting the future is impossible, you surely can stay prepared for it. Auto insurance is an excellent way to keep yourself, your investment and life of others around you protected. While people usually think it’s not going to happen to them, the reality is that a car accident takes place in the USA at an average of 18 seconds. No matter if you are a good driver who follows all the driving rules, car accidents can happen anytime, anywhere.

Auto Insurance

Minimum Coverage Requirement

Most of the states in the USA require you to carry minimum coverage auto insurance. Thus, it is very important to know the minimum requirements of your state. However, a lot of car owners choose additional auto insurances as they offer enhanced advantages.

If you are looking to buy Auto Insurance in Santa Ana or anywhere and are unable to make a decision among all the different products available, the below-mentioned list of some of the most common types of auto insurances is sure to help you out.

Liability Auto Insurance

Liability auto insurance is of two kinds- bodily injury liability and property damage liability.

  • Bodily Injury Liability Coverage: Bodily injury liability insurance will cover your medical bills, income or wages that you lose due to the injury, suffering, and pain, as well as the expenses of the funeral of others who were injured in a car collision in which you were legally responsible. Moreover, it will also cover the expenses of the court and legal help that you will need to defend yourself in covered lawsuit. In most of the states, bodily injury liability insurance is mandatory.
  • Property Damage Liability Coverage: Property damage liability insurance will cover the expenses of the property which you damaged in the car collision. Right from vehicles of others to the lamp posts, benches, or fence, property damage liability insurance will pay for all these repairs. This too is mandatory in most of the states.

Collision Auto Insurance

As the name suggests, this type of auto insurance will pay for the damages to your car if it is involved in a car accident irrespective of whether you or someone else caused the accident. If you are not at fault, the insurance company will reimburse the expenses from the other driver. While this type of insurance is optional, if you have got your car financed, the lending institution will require you to buy a collision insurance.

Comprehensive Auto Insurance

This type of auto insurance will cover the damages that are not caused due to a car accident. For instance, if your car gets stolen, gets damaged in a fire, earthquake, storm, falling objects, etc. you will be covered with the help of comprehensive auto insurance. Like collision auto insurance, comprehensive auto insurance too, is optional, but the lender of a financed car might require you to carry one.

These are some of the most common types of auto insurances in the USA. Before choosing an insurance product, make sure that you consult a professional advisor to pick a product that is perfect for your needs.

This entry was posted in Auto Insurance. Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *