This Car Insurance in America is developed to protect the drivers from heavy costs if their car is damaged. It is mandatory to buy insurance coverage and carry the insurance
documents while driving their vehicles. The insurance premium is paid monthly and this premium depends on different factors like the driver's age, his driving history which place
and what type of car he is driving?
Car Insurance in United States of America
Different Coverage provided by Car Insurance in America
- General Coverage: The drivers are protected by many types of coverage based on which policy they buy. A policy which provides liability coverage is very important and
most of the states require a driver to carry it while driving. The policy with liability coverage allows the driver to cover the cost of the damage done to another person or
property involved in the accident.
When you drive a car owned by another person, you need to remember that you are covered under his liability insurance and not yours. For this reason there's a separate policy
called non owners insurance policy which allows a driver to operate any vehicle even if it belongs to another person. This policy is available to those drivers who do not own a
vehicle. This policy is also called Named Operator Policy.
- Liability Coverage:
This covers the costs for treating bodily injury or property damage caused when an accident occurs for which the insured driver is held responsible. The coverage will vary based
on drivers' needs and the costs covered by the policy can be increased prior to the accident by paying additional money.
Depending on the combined or separate coverage provided for bodily damage or property damage, the liability coverage is of two types namely Combined Single limit and Split limit.
Combined Single limit provides coverage for bodily and property damage together and Split limit provides coverage for either bodily damage or property damage.
- Collision Coverage: protects a driver from the damage caused by collision with other vehicles, stationary things, and road hazards. This coverage covers your vehicle's
Actual Price Value and not how much you spent on it while it. You need to be careful while opting for this coverage. This coverage is useful only when you buy a new car or when
your car is an expensive model.
- Comprehensive Coverage: pays for your car repair and replacement or car parts when your car is subjected to any kind of natural disaster like flood, fire, storm; damage
caused animals, malicious mischief caused by hooligans
- Rental Car Coverage: If you are a traveler who keeps visiting different countries on business purposes you will have to rent cars quite often. You might not know when
you would come across unforeseen events and you will end up paying huge amount money. For this purpose there is rental car coverage.
You need to check if your existing policy provides you coverage for rental cars or if the rental company offers you the coverage. Usually the liability coverage does not provide
coverage for rental vehicles therefore if you meet with an accident and covered under liability insurance only then you will have to pay for the entire damage done to the car.
- Guaranteed Auto Protection (GAP) or loan/lease payoff Coverage: This coverage helps you protect your car's depreciating value in case if it is totaled before you pay
off the pending balance on the loan.
The depreciating value of new vehicles will be high in their first year. Only the actual cash value (ACV) will be paid by your insurance policy in case you are involved in an
accident and your vehicle is totaled.
Some Popular Auto Insurance Companies in America
Insurance for cars in America is available online. There are many popular insurance companies who offer reasonable rates and helps customers save a good deal of money. Some of the
popular car insurance companies are as follows: