Enter Your ZIP Code

Main auto insurance categories into which the 50 states fall

By
Published:

Auto owners insurance varies between states and most auto owners insurance would be the minimum coverage that would be required by the state.  While some auto owners prefer to add comprehensive as well as collision auto insurance to offer better protection, there are the others who prefer to purchase both types of coverage in separate packages.

While comprehensive insurance covers almost everything, it does not cover collision. But, collision insurance offers protection irrespective of whether the driver was at fault.

Different states, different laws:

The laws governing auto insurance vary from one state to another.  The laws might be somewhat relaxed in one state but they might be a bit rigid in another state.  The laws that govern each state are different and at the time of the accident the laws pertaining to that particular state would be applicable.

Categories:

The laws governing the auto owners insurance would be applicable depending on the state that you are in.  At least 50 states in America fall into these categories:

  • No-fault states – These are states where the insurance company will pay up to the value of the policy irrespective of who was at fault.  Such states that cover the damages the vehicle has suffered, irrespective of who was at fault, are known as ‘no-fault states.’  Under such circumstances neither party would be able to neither blame the other nor file a suit against the other.  They also cannot claim compensation from each other.  The compensation can only be claimed from the insurance company.  But in case the insurance company has already settled the claim and then realize that the opposite party was at fault, then that party must pay the compensation and cover the loss.  In such cases, the insurance company of the driver at fault would be expected to bear the loss and vice versa. 
  • Tort states – In these states, if one has to get involved in an accident either of the two parties would be identified as the one at fault.  Under such circumstances, each party can file a suit against one another and ask the opposite party to pay for the losses that one might have incurred on account of the accident.  These laws in these Tort states also may vary from one state to another.
  • Add-on states – in these states one gets the compensation from one’s own insurance provider but there are no restrictions with regard to lawsuits that may be filed in these states.  These states are called add-on states.