Road safety measures, best-in-the-market vehicles, advanced assisted driving systems, and excellent driving skills will not guarantee that you will not be involved in an accident; whether at fault or no fault. Albeit, all the factors mentioned are required for enhanced security of both your vehicle and the lives of the passengers in the car. Accidents can happen for varied reasons and sometimes when there is no fault of either party. When something cannot be absolutely avoided, then one takes all the precautions to avert it and cushion if the mishap does happen. This support comes in the form of auto insurance policies that a person pays a premium for as per the coverage requirements.
American car insurance rules are pretty straightforward. Here, car insurance is compulsory and mandated by all states. Some states have no-fault and others have either repealed no-fault or are at-fault states. This simply means that in a no-fault state, to reduce the number of litigation in the small claims court, both parties have to claim from their respective insurance company without withstanding who is the at-fault driver.
Here are some common types of coverages that one needs to know about:
- Liability Coverage
One of the most basic insurance that is required by law in all states, it covers the liability that you incur in an accident. The coverage spans third-party bodily injury and damage to their car.
- Collision Coverage
In case of an accident, your insurance will cover the damages to your car and the other party’s vehicle, disregarding who is at fault. It includes accidents where other cars or objects are involved like ramming into a pole. So next time you avert hitting a speeding deer and hit the curb, your insurance provider will pay serving bills and even help you with your medical expenses if you take this coverage.
- Comprehensive Coverage
It includes liability and collision alongside theft, jealous neighbors pelting stones, or natural disasters like storms, floods, or hurricanes. With the increase in crime rate and climate change showing disastrous impacts, comprehensive coverage is bliss for new car owners who are still paying a heavy amount off their loans. If a car is stolen or vandalized, you have to file a police complaint. The coverage will extend to IDV or the insured declared value of your vehicle which is fair market value at the time of the incident.
- Uninsured Motorist Coverage
Despite legal obligations, there will be some people who will risk driving without even basic liability coverage. If you are caught in an accident and the other party is at fault without insurance, then this coverage will pay for the damages to your car and your medical expenses. Otherwise, sadly you have to take up the matter in court by filing a personal injury lawsuit.
Conclusion:
One may be a great driver who adheres to all the traffic rules, observes safe distance, and maintains their car regularly. Still, there can be accidents because of numerous reasons which may include third-party bad drivers. So stay insured and drive safe.
