Car Insurance in USA

Car insurance in the USA is basically signified that, if your car met with an accident and, bear a physical damage. Car insurance cover ups the risk.  At some places, it is mandatory to carry car insurance and provide insurance proof at the time of car registration. It is desired from drivers to carry car insurance with them . Buying a car is very easy but acquiring a car insurance is complex. At some states it is not mandatory to have car insurance these places are Lowa, Mississippi, Alabama, New Hampshire, Pennsylvania  ,here a law called financial responsibility is implemented. Car owners are asked to post cash bonds, cash deposit if car met with an accident and cause a damage.

There are following types of car insurance cover up schemes

Liability insurance

Liability insurance or casualty insurance they both are same, this insurance covers property injury liability and bodily injury liability. In property injury liability the damage caused by the insured driver to the property whereas bodily injury liability is the damage caused by the insured driver to someone. In both, the insured driver is found to be responsible for  the injuries. In many states , liability vehicle insurance is mandatory and states like new jersey, where car liability insurance is necessary. one can’t drive a car without car liability insurance coverage. If an accident occurs in this state both the party have to submit the copies of their car insurance cards as proof of liability coverage. Liability insurance or casualty insurance includes two policies named as combined single limit policy for car liability insurance and split limit policy for car liability insurance.

Combined single limit policy

combined single limit policy coalesce the both, bodily injury damage coverage and property damage coverage as one single limit policy.

Split limit policy

Split limit policy  split up the both bodily injury damage coverage and property damage coverage, payments for property damage are paid under property damage coverage and payments for injury damage is paid under bodily injury coverage. Bodily injury damage also splits up into two

Maximum payments per accident

Maximum payment per person

$ 5000 to $ 30,000 for the death/injury of one person and more, damage to the property.

PIP or No-fault Insurance

PIP is personal injury protection and personal insurance protection it is a car insurance which covers medical expenses damages and lost wages. PIP is also referred as No-fault insurance. In this law, you can claim from your own car insurance company for the injury. PIP only covers bodily injury. It is a very beneficial law as it describes that you can demand a claim from your own car insurance company and saves your time of proving yourself as a victim in a court. PIP bears all the expenses like medical bills, hospital bills replacement services, funeral expenses. PIP law is mandatory in Arkansas, Delaware, Florida, Hawaii, Kentucky, Michigan, New York, New Jersey, Utah.

Uninsured motorist insurance

in united states, an uninsured motorist insurance is found very commonly. It is a vehicle insurance policy basically meant for drivers and designed for protection. This insurance policy cover ups the damage made by the uninsured driver it is compulsory in some of the states

Underinsured motorist insurance  

Underinsured motorist insurance policy covers two damages that are property damage and injury damage. If it is property damage it pays for your own car and for other ‘s property and injury damage covers the medical expenses and other expenses. It is mandatory in some states.

Collision insurance

It is an insurance policy which protects your car if it is damaged and gets destroyed in an accident. If your car hit with another car and get damaged , the damage will be cover up with this collision insurance policy. In this insurance a damage can be repaired and if it is not repairable the cash value will be bearable by the insurance company.  

Comprehensive insurance

A comprehensive insurance policy is bit differ from collision insurance policy, it provides the coverage of damages like fire, theft, damaged caused floods,  storms, wreckage, damage caused by animals and trees. Uncertain situations like storms, tornado, hurricane, hail storm and floods included in the comprehensive policy.