Types of car Insurance Policies in the US

In some US states like Iowa, Pennsylvania and New Hampshire, it is not mandatory to purchase car insurance since motorists can use the ‘financial responsibility’ laws that allow an automobile owner to post approved self-assurance, bond or cash deposit with the state to provide coverage in the unfortunate event of a car crash. In other states where auto insurance is mandatory, car owners need to show proof of its existence in their vehicles and when registering automobiles. Buying car insurance is a complex affair in the US and motorists have the following types of cover to pick from. Liability Insurance It includes injuries you inflict on another party and damage to other people’s property, including vehicles. It is compulsory in a majority of states, though unlimited liability is not included in all cases. No-Fault Insurance Approximately 25 states have this type of insurance, which is also known as personal injury protection cover. Here, a motorist can claim from his own insurer for the personal injuries sustained but there exist limits as to how much can be sought in compensation. PP Medical Expenses Insurance Someone can buy personal injury protection insurance that caters for medical expenses only, and this type of cover pays for the expenses of the individuals who get injured while travelling in your vehicle, regardless of who is at fault. The cover may also cater for medical expenses that result if you or a member of your family is injured as pedestrians or in another person’s vehicle. Catastrophic Medical Expenses It is a cover that protects holders from medical bills that are unusually high. Your level of health insurance determines whether or not you have this insurance type and you will be advised to get catastrophic medical cover in case it has limitations. Uninsured Motorist Insurance It is an insurance cover that protects you in the case of accidents that involve uninsured drivers and hit and run smash-ups. Under-Insured Motorist Insurance Just like its uninsured insurance alternative, you get covered in the event of a crash that involves another motorist who has insufficient insurance to cater to your injuries and damage to property. Collision Insurance It is a cover that pays for the damage to your automobile, regardless of the party responsible for causing it and often features an excess deductible that determines how high or low your premiums are going to be. Comprehensive Insurance It is an insurance type that caters for losses that result from any of the following: • Theft • Fire • Natural calamities • Accidents involving animals • Falling objects or those hurled by other vehicles It does not cover accidents involving two vehicles, however. Miscellaneous Extra Insurance The costs covered under this type of insurance vary widely and include rental vehicle expenses as your car gets repaired and those related to towing.

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