Buying adequate amount of insurance is always a bit confusing, since requirements vary by state. Buying more insurance than the minimum is always recommended, but it is always tough to determine how much insurance is actually needed. Below are some of the insurance policies that are essential to drive without worries.
Auto Liability and medical liability insurance:
Auto Liability insurance is the most basic insurance policy that is required in almost every state of USA. It is a mandatory coverage that protects the other party whenever there is a collision. Without this insurance policy, the driver is held liable for the cost incurred in repairing or replacing the damaged automobile parts. Medical liability covers the medical bills of the other party, resulting in treatment of injuries due to a collision incident. Liability insurance does not protect the insurance policy holder in the event of a collision. They are however covered if the other party has liability insurance coverage too.
Collision and Comprehensive Auto Insurance:
In case the other driver involved in the collision does not carry liability insurance, then the driver is not protected in the event of collision. Collision insurance is a necessity since it covers the repair of the automobile in the event of collision with other vehicle, or collision of any other kind. Collision insurance pays for the damages whether or not the policy holder is at fault. Comprehensive insurance takes care of damages due to natural disasters like hurricanes or earthquakes and extreme weather conditions like snowstorm, hailstones or any such unexpected damages like fire, vandalism or even falling trees. Comprehensive and collision together provide an extensive coverage to the automobile. Buying these policies together is recommended only if the automobile is in good condition or newly purchased. If the car is very old and poorly maintained, these are not required, since the premium may exceed the total value of the car.
Personal injury protection:
If the individual does not have a good health insurance policy, it is recommended to purchase a personal injury protection plan along with other insurance plans. This covers all medical expenses in the event of a personal injury due to collision.
Uninsured or underinsured motorist coverage:
This coverage is recommended if the individual does not have a collision insurance plan. This will cover all the medical expenses resulting from the collision, if the other driver does not have liability insurance. Even if the other driver has minimum liability insurance, this will cover the difference in costs for the treatment.
