Car insurances are mandatory in most of the states around the world and U.S.A. is no different. Insuring one’s vehicle helps the person safeguard themselves, their cars and also any other person or property damage involved in times of needs such as accidents and collisions. These insurance policies vary from state to state. There are many types of insurance policies depending on the agreement of area of coverage particular in the policy bought by a person.
U.S.A. and auto insurance
Like all over the world, it is mandatory to buy car insurances in most of the states of U.S.A. but buying the same is not very easy in the country like it is in other countries. There are various types of cover available in the country under the broad spectrum of insurance policies. It is necessary for the insurance bearers of the country to keep their insurance card provided by the insurance companies with them always, they have to produce this card as a proof that the vehicle is insured while getting their car registration done. One must carry the insurance card with them in their vehicle always. This act helps in case of accidents and claims. Few types of insurances are discussed in the following sections:
Type#1: Liability insurance policy
When a person gets liability insurance done, he or she insures the third party involved in the accident or collision. This insurance insures the person against expenses which they have to bear against injuries suffered by someone else or against any person’s property such as other vehicles etc in times of accidents. This type of insurance, in many areas, is a compulsory type of insurance.
Type#2: No fault insurance policy
According to this type of insurance policy, the person who is the owner of the vehicle and the policy can claim money from their insurance company in case they suffer from personal injuries in the time of the accident. This type of insurance helps to cover hospital and treatment expenses, funeral expenses and also gives wages to the person until and unless he or she does not recover.
Type#3: uninsured motorist insurance
This type of insurance is done by the people to safeguard themselves whether they are driving or they are walking in cases of hit and run accidents and in cases of accidents with uninsured motorists. This insurance is important as most of the drivers in the country are uninsured motorists as the premium rates of insurance policies are high in the country.
Type#4: Collision insurance policy
This type of auto insurance covers damages caused to the vehicle either by the driver themselves or by some other person. This insurance covers have high excess, depending on the excess the premium rate of the insurance policy gets low. The most important thing which determines if one needs this insurance cover or not is the value of the owner’s car. This insurance are done in case the person takes car loan or gets the car on lease. If a person has this insurance done then they do not need to get uninsured motorist insurance.