Know the minimum auto insurance coverage requirements in US

If you are a citizen of United States, then you would already be aware of the fact that in most states in the U.S. you need to have auto insurance in order to own a car. In fact, a minimum coverage is required to be possessed by an individual in all states which shows some basic financial responsibility. Do not shirk away from auto insurance by thinking it is an extra cost. You should remember that the auto insurance will protect you, your family and your vehicle in case of an accident no matter which party’s fault it is.  Read on to know about the requirements of the coverage those are necessary.

  1. Bodily injury liability – This coverage does not apply to you, but to the other party who gets injured in an accident that has been caused by you. It also covers you and your family members when you are driving the car of someone else with their permission. It is rather important that you have sufficient amount of liability insurance in case you get involved in a serious accident you may get sued for quite a large amount of money. You should consider buying more than the minimum requirement for the state auto insurance coverage in order to protect your financial assets such as home and savings.

 

  1. Collision coverage – This coverage envelope the damage to your car that has resulted from a collision with another car or object or if it has flipped over. Your car will also be covered for damages caused due to potholes.

 

  1. Personal injury protection – This coverage will pay for the treatment of injuries to you or the driver and passengers of your car. On a broad basis personal injury protection pays for your medical treatments due to the accident, lost wages and the cost of replacing the services which are normally performed by someone who is injured in an auto accident. It can cover funeral costs too.

 

  1. Comprehensive coverage – There maybe damage caused to your car by factors other than an accident. Theft, vandalism, damage due to natural calamities such as flood, hurricane, storm, fire or damage caused by wild animals are some examples of ways in which your car can get damaged. This is not a mandatory coverage that states will insist you to buy, but you should just in case any of the above mentioned reasons damage your car.

 

  1. Property damage liability – This coverage is meant when the car you are driving or someone else is driving with your permission causes damage to another person’s property. This not only includes damage to someone else’s car but also the fences, lamp posts, telephone poles or other structures.

 

Most of the above given premiums have minimum requirement levels and thus will help you in protecting your vehicle and yourself in the event of an accident.