If you live in the United States of America, some laws will vary depending on the state. And car insurance laws are no exception. While car insurance coverage isn’t uniform across all states, you can still expect some level of these common auto coverages.
Collision Coverage
Collision coverage is a type of car insurance coverage that takes care of repairs to your car in the event of a collision.
Most states will require at least this type of coverage, though coverage limits and other factors vary from state to state.
Comprehensive Coverage
Comprehensive coverage is another type of car insurance coverage and is often paired with collision coverage.
Comprehensive coverage is a type of insurance that covers physical damage to your car by events other than collisions. This may include things like hailstorms, floods, fires, and vandalism.
Uninsured Motorist Coverage
Uninsured motorist coverage is protection in case you’re hit by a driver who doesn’t have auto insurance or who hits you with an uninsured vehicle. Basically, if the driver doesn’t have enough insurance to cover your damages, this coverage would help with the rest.
Bodily Injury Liability
Bodily injury liability auto insurance coverage is another important type of auto insurance. It protects you if you are found legally responsible for an accident that causes bodily injury to another person. This coverage will help cover the costs of the bodily injury claim.
Property Damage Liability
Property damage liability is a type of auto insurance coverage that protects your financial interests in the event of damage to another person’s property outside of a collision.
Medical Payment Coverage
Medical payment coverage is a form of insurance that helps pay medical bills if you’re injured in a car accident. An example of this would be if you are injured in a car accident and require a visit to the emergency room.
Is Car Insurance Mandatory in Every State?
In a word, no. You won’t be ticketed in every state for not carrying car insurance. However, car insurance is required in many states.
The minimum coverage requirements vary from state to state, but in the majority of states, motorists are required to carry a minimum of liability insurance.
If you live in a state with a “no-fault” insurance system, it’s more difficult to get out of buying car insurance, but you can do so by proving that you don’t need it.
Some states also require you to purchase car insurance as a condition of registering your vehicle. Be sure to check with your state’s DMV for information on how to register your car if you don’t have insurance.
But, if you’re driving in a state that requires you to have car insurance and you get into an accident, you could face stiff penalties. For example, you may have to pay a fine, your car might be impounded, and your license could be suspended.
If you live in a state that doesn’t require you to have car insurance, you may choose to carry auto insurance anyway. Car insurance helps protect against potentially devastating financial losses in the event of a car accident.
Final Thoughts
Car insurance laws, like the United States laws in general, vary by state. However, there are some common elements that you’ll see in most car insurance policies, such as collision coverage. If you’re doing a lot of driving, or if you have certain types of assets that you want to protect, you should consider getting some type of car insurance coverage.
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