Car insurance (also known as motor insurance or auto insurance) is insurance for cars, trucks, motorcycles, and other road vehicles.
Wikipedia
Car insurance laws vary from state to state, but all states require a minimum level of liability insurance. State minimum insurance requirements are the car insurance requirements for each state, by law for their residents.
A liability policy is generally required of all drivers, which covers any damages a driver causes in the event he or she gets into an accident and is at fault.
There are many different insurance companies that provide policies to everyone that purchases one as a driver. Knowing what is needed based on the state, car and type of driver is important.
State insurance laws set minimum liability coverage amounts for bodily injury and property damage to others. Common types of coverage include the following:
- Bodily injury liability. coverage as defined per person and per accident. Liability insurance covers injuries that you, as a driver or policyholder, cause to someone else.
- Property damage liability. It does not cover damage to your own car, it is meant to cover damage that you become responsible for. Besides vehicle damage, it can include damage to posts, telephone poles, fences, buildings or other structures you hits.
- Personal injury protection (PIP). PIP may cover medical payments, lost wages or other costs resulting from an accident. Policyholder pays for injury claims and other damages claimed by passengers.
- Collision coverage. This coverage protects you in the event your car is damaged in a crash with another vehicle or object, or in the event the vehicle flips over, also cover damage caused by potholes in the road.
- Comprehensive coverage. This covers damage from fire, theft, earthquakes, windstorms, hail, vandalism, or other such acts.
- Uninsured/underinsured motorist protection. Underinsured motorist coverage protects you when an at-fault driver doesn’t have enough insurance to pay for your total loss. This protects you if you’re hit as a pedestrian.
State automobile insurance laws generally set minimum amounts for liability coverage. These limits range from $20,000 to $100,000 per accident for injury liability and per accident for property damage liability. Some states that require drivers to purchase no fault insurance.
Each state has different car insurance law so it is highly important to contact an insurance agent near you and make sure you’re meeting your state’s insurance law requirements.
