As of today it is mandatory to have some form of auto insurance in the United States. Driving without insurance, or with insufficient insurance, leads to heavy penalties, suspension or cancellation of your license and registration, or even jail time. The rules are imposed upon us by the government not for their benefit, but for the benefit of us, the citizens of the nation.
The government of each state prescribes a minimum amount a vehicle can be legally insured for, this is called the state minimum, and should only be used as a yardstick for legally adequate insurance, such insurance is no where near adequate in real life situations, and will have you spending huge wads of cash out of your pocket.
There are way too many subcategories to chose from, much to the plight of the average insurance seeker. Going through fine print isn’t everyone’s cup of tea, so we have gone ahead and done the work for you, and drawn up a charter of different liabilities you should definitely get coverage for.
Many insurance companies advertise for full coverage car insurance however they leave out aspects which don’t really leave you complete insured against injury and property damage.
In each case there is an extent of cover, which if inadequate can still have you paying large sums of money towards your vehicles repair, property damage, the other persons vehicular damage, and both parties medical bills, among other things.
If the policy holder was at fault, Injury liability covers medical bills, cost of the ambulance service, loss of wages, funeral expenses, and legal fees among others. Most people spend a majority of their money on this aspect of auto insurance, as this is the broadest coverage available, and provides a good deal of security to the insured person. Inadequate insurance is something to watch out for though, if your insurance cover is inadequate, you will still end up spending heavily.
Property damage liability
Property liability covers all property damage caused by the policy holder; in terms to personal property and real property, that belongs to a third party, or anyone other than the insured person.
Collision liability covers damage to the policy holder’s vehicle during an accident.
Comprehensive liability covers non collision damage caused to a car, such as natural disasters and calamities, vandalism, damage by colliding with a garage door, or a streetlamp.
Uninsured and underinsured motorist liability
Uninsured and underinsured motorist covers damages caused to yourself or your vehicle in the event that the other driver at fault doesn’t have adequate coverage to pay for the restoration of your assets. This coverage should technically not be needed, but proves to be very handy in case of an accident. It might not be your fault, but if the other person isn’t insured, or is under-insured, all you can do is get this coverage to protect yourself.
All these covers put together build you a fool proof insurance scheme, which will keep you and your car protected no matter what. While we have suggested what kind of coverage you should opt for, it is still mandatory for you to read the fine print, no one can guide you through not reading it as every insurance company has its personalized terms and conditions. Understanding these can help you understand where you stand when it comes to being covered from various liabilities.