Types of Car Insurance in the USA
Many different types of car insurance products are now available in the USA. While some of them are compulsory in almost all the states, many others do an excellent job of protecting the drivers financially in case of an accident, natural calamity or a small mishap. But with all the different types of car insurance available, it can be difficult to choose the ones that you truly need.
Go through the list of some common types of car insurance available in the USA mentioned below to make a decision.
1. Liability Insurance
Liability insurance will cover you if you are ever involved in a car accident which is an outcome of your actions. This insurance will cover the cost of repairing the property that is damaged in the accident along with the medical bills of the injuries if any. The majority of the states in the USA have minimum liability insurance coverage requirements which the drivers should compulsorily have. However, it is usually recommended that you should get a liability coverage that is higher that of the minimum requirement in your state for enhanced financial protection.
2. Comprehensive Coverage
A comprehensive coverage comes into effect when your car, is damaged by a natural calamity, hits a deer, or is stolen. While this coverage is not compulsory for every driver, lien holders in the USA are required to have comprehensive coverage. Moreover, the cost of buying a comprehensive coverage can be reduced by installing tracking and anti-theft devices in your car.
3. Collision Coverage
If at all you are involved in an accident that is covered, collision coverage will pay for all the damages. Also, if the car is totaled and the repair costs exceed the actual cost of buying a new car of the same model, the insurance company will pay for the new car. Older cars are not usually recommended to buy a collision Car insurance in Garden Grove or anywhere in the USA. However, if your car is new and expensive, a collision coverage can be a great way to protect yourself from paying for the damages if there is an accident. Also, just like the comprehensive coverage, lien-holders are required to carry this insurance compulsorily.
4. Personal Injury Coverage
While you might not need a comprehensive or collision coverage, personal injury coverage is highly recommended for every driver. This insurance will cover your entire medical costs along with that of the passengers in case of a covered accident irrespective of who is at fault for the accident. The medical bills during an accident can add up very quickly, and this personal injury insurance is an excellent way to protect yourself from these expenses.
While there are other types of car insurance products available in the USA, the ones mentioned above are the most common. Make sure that you thoroughly understand your car insurance requirements and the benefits of all the different types of products before making a decision. A good insurance agency can also be consulted to help you make the right decision.