A Guide To Various Auto Insurance


With the increasing number of road accidents and fatalities in the US, it has become necessary for all car owners to get their car insured. There are various auto insurance available and you can choose the one which will offer you the maximum coverage.

Recent studies conducted in the US, report an increase in the number of road accidents in the last few years. The statistics show more than 5.5 million car accidents have occurred which have left more than 2 million people injured. Therefore it has become quintessential for every motor vehicle owner to get themselves and their car insured.

There are different types of car insurance policies available these days. Some of them are;

Liability Insurance

In most of the countries, it is mandatory for people to buy this insurance policy. It provides coverage to the physical injury or car damage of another person as a result of any accident. Hence, this coverage is important for individuals who don’t have enough money to pay the compensation. Liability Insurance is governed by the state laws and these norms decide on the minimum coverage that a person must have. However, the greatest extent of protection is up to the buyer’s discretion.

A higher liability plan covers all the damages and expenses that one has to pay in case of an accident. Hence this policy involves high premium. Sometimes the premium also depends on the driving record. If the record is good, he has to pay comparatively less premium.

Collision Insurance

Car is a big investment, hence needs protection from any sort of damages arising out of accidents. This policy protects the car by covering all the damages from a collision. Collision Insurance is not mandatory like the liability insurance, but people usually prefer this insurance to safeguard themselves against the huge cost involved in getting the car repaired after an accident.

Comprehensive Auto Insurance

Unlike other auto insurance policies, it covers all sorts of cases like theft, damages from natural disasters, accidents, fire, wear and tear, etc. This feature not only makes the policy the most widely adopted one but also costly. Premium is usually lofty as the risks involved are high. The only problem people face is to find a provider who will insure the vehicle up to 100% of its value.

Full Coverage Auto Insurance

From the name, one can easily make out the need of this policy. This policy is a combination of liability, comprehensive and collision insurance. Besides covering the damages of the car, this policy also pays the medical bills even if you are responsible for the accident. The premium is considerably higher as compared to the other three plans discussed earlier.

Personal Injury Protection (PIP)

This policy can be regarded as an extension of the car insurance and covers the medical expenses. It covers the medical bills as well as the funeral expenses if the insurer gets injured or dies in an accident. In the US, many states have made this insurance mandatory for every car owner.

For more details on different car insurance policies, you can run a quick check online where you can find various companies providing affordable auto insurance policies.

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