Auto insurance requirements and laws vary from state to state, but all states need some type of vehicle insurance or proof of financial responsibility. It may look like an extra cost, but actually car insurance protects you, your family and your car if you’re in an accident or if your car is damaged.
In general, state vehicle insurance laws may need some level of the auto coverages listed below.
Bodily injury liability
Liability Insurance covers injuries that you, the designated driver or policyholder, cause to another. You and family members listed on the policy may also be covered when driving someone else’s vehicle with their permission.
Medical payments or personal injury protection(PIP)
State auto insurance laws typically needs medical coverage that pays for the treatment of injuries to the driver and passengers of the policyholder’s vehicle. PIP may cover medical payments, lost wages or other costs occuring from an accident.
Property damage liability
This car insurance coverage pays for damage you (or someone driving the vehicle with your permission) may cause to someone else’s property. Besides car damage, it can include damage to lamp posts, telephone poles, fences, buildings or other structures your vehicle hits.
This coverage covers you in the event your car is damaged in a crash with another car or object, or in the event the car flips over. Collision insurance may also cover damage caused by potholes in the road.
Comprehensive coverage reimburses you for loss due to theft or damage caused by something other than a collision – such as fire, falling objects, earthquakes, windstorms, hail, floods, vandalism or contact with animals. States actually do not require you to purchase collision or comprehensive coverage. But if you have a vehicle loan, your lender may insist you carry it until your loan is paid off.
Uninsured and underinsured motorist coverage
This coverage is to pay you, a member of your family or a designated driver for damages caused if one of you is hit by an uninsured or hit-and-run driver.
Underinsured motorist coverage comes into existence when an at-fault driver doesn’t have enough insurance to cover your total loss. This coverage may also protect you if you’re hit as a pedestrian.
To ensure you’re meeting your state’s insurance law needs, get an auto insurance quote or work with an insurance agent near you and ensure you have the right class of coverage.