5 Major Types of Car Insurance Available and the Benefits of Buying Them

  • Both these categories safeguard you against expenses that occur when you accidentally damage another vehicle or person.
  • The coverage will cover lots of practical issues including weather damage, flood, theft, vandalism and collision coverage will also provide a sum to repair your car if you get into an accident.
  • Not all the motorists and car drivers on road opsses a valid car insurance policy.

Vehicle insurance is first and foremost an essential requirement for every type of driver in the United States. While it is enforced by the law to have insurance and make third-party claims easier, you can also protect yourself against accidents, unexpected repair expenses and medical fee when you have comprehensive car insurance in the USA.

There are five major car insurance types in the USA, and not all of them are mandatory. Besides, you may also have to choose the ones available based on the state you live in and the federal regulations in that particular area. Each insurance policy has specific eligibility, coverage and cost that you should be aware of before you choose to pick up one of the policies.

Liability Coverage

This one is easily the type of policy that should be mentioned at the top because liability coverage is considered mandatory in most states in the United States of America. The two sub-categories within this policy are property damage liability and bodily injury liability. Both these categories safeguard you against expenses that occur when you accidentally damage another vehicle or person. It will cover either medical expenses or repair costs if you bump into another vehicle.

Comprehensive Collision Coverage

While state governments may not make this mandatory in every region as it will shoot up insurance costs, you should probably get them based on where you live. The coverage will cover lots of practical issues including weather damage, flood, theft, vandalism and collision coverage will also provide a sum to repair your car if you get into an accident.

Long-term Personal Injury Protection

The policy is similar to medical coverage which is triggered if you get involved in an accident and needs medical assistance. The cost involved for the surgery will be covered by car insurance in the USA, but this particular coverage goes beyond the initial recovery. It provides additional long-term treatment costs and covers other medical expenses if necessary.

Uninsured and Underinsured Coverage

Not all the motorists and car drivers on road opsses a valid car insurance policy. While there are numerous car insurance types in the USA, there are many who use underinsured coverage that may not be enough to cover damages incurred physically or to your car. In such cases, the excessive medical bills or repair cost will be covered by the insurance. This insurance is compulsory in some states but not all of them.

Medical Payments Coverage

Another commonly availed car insurance in the USA is medical payments insurance which covers every additional bill created by the hospital. It includes additional medicines, scans and prolonged treatment to ensure a complete recovery from the accident.

While the car insurance types in the USA is vast and may sound intimidating to choose from, getting assisted by professional agents to help you choose the right policy based on your needs is essential. Based on your driving records, your location and the types of coverage you need, it is easy to bundle up multiple policies together and pay one consolidated premium monthly, quarterly or annually based on your convenience.

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Sophia William

Sophia william is an industry expert who enjoys writing on finance, Insurance & Travel etc. She loves being in the outdoors and exploring new opportunities whenever they arise. Sophia finds happiness in researching new topics that help to expand her horizons. 


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