There are several types of car insurance legal on the US territory. Which one to choose depends on your budget, your car model and on what you expect to get from the insurance coverage. Anyway, every sate has its own insurance requirements which differ from state to state. This means that the first thing to consider, is whether this or that vehicle insurance type as well as insurance program is available in the state you live in.
Nevertheless, here are the five main categories of car insurance you are to choose from.
1. Liability Insurance
Liability Insurance is perhaps the most common type of insurance, as every state requires to have at least liability coverage to drive legally. This coverage covers the expense of the property damage or bodily injure if you are faulty for the accident. Yet, it is not responsible for the damage you experienced as a result of the accident. Liability coverage protects you financially, as it would cost you much to pay for the damages of others you were the cause of.
2. Collision Insurance
Collision Insurance comes next after the Liability Insurance. It is also very common for a great number of drivers. This coverage will provide you compensation for your damaged car even if you were the fault of the accident. Yet it is not responsible for damages caused by not covered accidents. Moreover, if the cost to repair your car exceeds the value of your car, you will be paid the right amount your car is worthy.
3. Comprehensive Insurance
Unlike liability and collision insurance, comprehensive coverage is optional and covers situations, which are not under the responsibility of the two above-mentioned types. This coverage will cover such situations, as weather damage, the steal and any other situation not related with covered accident. Carrying this insurance coverage is costy, hence it is not advisable for easily replaceable cars.
4. Personal Injury Insurance
Personal Injury Insurance covers costs of treating your injuries irrespective of who was the fault for the accident. Having this coverage, which is not available in all states, both you and your passenders will be guaranteed to receive proper medical treatment in case of accidents.
5. Uninsured/Underinsured Motorist Insurance
Uninsured/Underinsured Motorist Insurance covers expenses of your damage if the accident was caused by an uninsured or underinsured driver. Today more than 15% of American drivers do not have the minimal car insurance required by their state. And if you are hit by one of these drivers, this insurance coverage will compensate your medical expenses and lost wages.