Types of car insurance in America
What is car insurance? It is a contract between you and an insurance company that guarantees you financial compensation if your car is damaged or stolen or causes harm to others.
Types of car insurance in America
- Comprehensive insurance: This type of insurance covers losses resulting from accidents and damage caused by things such as fire, theft, and vandalism.
- Liability insurance: This type of insurance covers financial liability for physical or property damage that your car may cause to others.
- Collision insurance: This type of insurance covers the costs of repairing your car in the event of a collision with another car or a fixed object.
- Medical costs insurance: This type of insurance covers the costs of medical care for you and your passengers in the event of an accident.
- Non-Insured Protection/Uninsured Driver Coverage: This type of insurance covers the costs of repairing your car or the costs of medical care if you are hit by an uninsured driver or getaway driver.
Factors that affect the cost of car insurance:
- Your type of car: The most expensive cars to insure are usually sports cars and luxury cars.
- Driving Record: Drivers with clean records of accidents and traffic violations are eligible for insurance discounts.
- Location: Insurance costs are usually higher in urban areas with high traffic.
- Insurance Coverage: The more coverage you have, the more expensive the insurance will be.
Compulsory insurance:
- Bodily Injury Liability Coverage: This coverage covers medical expenses and loss of earnings for people who are injured in an accident caused by you. Minimum coverage requirements vary from state to state, but are usually $25,000 per person and $50,000 per accident.
- Property Damage Liability Coverage: This coverage covers the costs of repairing or replacing other people’s property that is damaged in an accident caused by you. The minimum required coverage is usually $10,000.
Supplementary insurance:
- Comprehensive insurance: This coverage covers losses resulting from theft or damage caused by things such as fire, flood, vandalism, or collision with an animal.
- Collision: This coverage covers the costs of repairing or replacing your vehicle in the event of a collision.
- Medical Payments: This coverage covers medical expenses for you and your passengers in the event of an accident, regardless of who was responsible.
- Uninsured/Underinsured Motorist Insurance: This coverage covers expenses for medical care and repair or replacement of your car in the event of an accident with an uninsured or underinsured driver.
- Roadside Assistance: This service covers the costs of towing, repairing, or delivering gasoline if your car breaks down.