Owning and driving a car in the United States comes with a lot of responsibilities. One of the most important is purchasing car insurance. Car insurance helps cover the costs in case you are in an accident or someone damages your vehicle. Almost all US states require drivers to have car insurance to legally drive on public roads.
There are multiple types of car insurance coverage available in the USA:
• Liability insurance: This covers costs if you injure someone else or damage another vehicle in an accident. It includes bodily injury liability and property damage liability. Minimum requirements vary by state but generally include coverage of at least $25,000 per injured person, $50,000 per accident, and $50,000 for property damage.
• Collision insurance: This covers damage to your own vehicle from an accident, regardless of fault. It pays for repairs up to your policy limit. Collision coverage typically has a deductible amount you pay first, ranging from $500 to $2,500.
• Comprehensive insurance: This covers damage to your vehicle from events other than a collision, like theft, fire, natural disasters, vandalism, hitting an animal. It also has a deductible like collision coverage.
• Medical payments coverage: This reimburses injured persons’ medical and funeral bills, regardless of fault, up to your policy limit. It can help cover costs your liability insurance does not cover.
• Uninsured/underinsured motorist coverage: This covers damage caused by drivers who do not have enough insurance or none at all.
You should compare rates from multiple insurance companies to find the best value. Many factors determine your rates, including your driving record, credit score, age, gender, location, type of car. Being a safe driver with few violations, claims or tickets will ensure the lowest possible rates.