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Different types of car insurance you should know about


Life is unpredictable. There is just so much that could happen to you in a day that you might not actually know what exactly to prepare for. Accidents can be the one thing you would not want to think of. However you know already those accidents can happen at any time or any place so it is best to be prepared.

Car accident is among the leading causes of death not just in the United States but all over the world. With this it is very prudent for people to get their auto insurance regardless of it being required by the state law or not. Auto insurance can really be life saving in times of such trouble. This is the reason why states are requiring drivers to carry at least the minimum allowable auto insurance coverage to make certain that they can be financially responsible in cases of accidents.

The Liability insurance is the most common requirement by the state laws. This type of coverage is has two components. The first one takes care of the damages of the properties of the other party after the accident thus it is called property damage liability while the other one covers the bodily injury caused by the accident to the other party which is called personal injury liability. This type of coverage usually starts with $10,000 for the bodily injury, $15,000 for the limit per mishap and $10,000 for the property damage limit. The actual amount may vary depending on the auto insurance.

As the minimum requirement for car accident insurance differs from one state to another so as the other governing law about accident insurance. There are states that are referred to as the ”fault” states where laws are asking drivers to use their auto insurance coverage to take care of the damages in properties as well as injuries inflicted by an accident to which they are at fault. On the other hand there are states that are asking drivers to utilize their own auto insurance policy to cover damages regardless of who is at fault in the accident. These states are labeled as “no fault” states.

Car accident insurance can also take the form of “full” coverage insurance if the consumer financed or leased the car he/she is using.

The importance of car accident insurance can be best seen if the aftermath of an accident is happening right in front of us however we do not need to wait for any untoward event to happen before we get to realize that we need some form of protection.