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What kind of car insurance do you need in the US?

  • Auto Insurance
  • Xavier Sabastian
  • 5 minutes

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Car insurance in the United States is more complex than in most other countries. When it comes to car insurance in the United States of America, you will notice that it is not needed in some states, such as Alabama, Iowa, Mississippi, New Hampshire, Pennsylvania, and others. When you put in the query ‘car insurance near me’ on the internet, you will get various results for car insurance and their quotes.  


The search results for ‘car insurance near me’ will not give you the whole idea. To get a complete idea of what comprises car insurance in the United States you can read on to find out. 

These states have legislation requiring you to post a bond, cash deposit, or licensed self-insurance with the state to cover costs if you’re in an accident. In states where auto insurance is necessary, drivers must have evidence of insurance when registering their cars and may be required to have it in their vehicles at all times. 

To drive a car in the United States, you would require the following coverages: 

Liability insurance 

Liability insurance covers personal injury liability, which covers injuries you cause to others, as well as property damage liability, which covers damage to another’s property, such as other cars. Liability auto insurance is required in most states, but it does not always provide unlimited liability. Most states have minimum liability insurance requirements, but these are often insufficient. Each state establishes ”responsibility” limits for single-person deaths, multiple-person deaths, and property damage over a certain number. 

No-fault insurance 

Personal Injury Protection (PIP) or no-fault insurance laws are in place in around 25 states and the District of Columbia. This means that if you are in an accident, you will file a claim for personal injuries from your insurance provider (up to certain limits) rather than going to court and proving that the other party was at fault.  In states without a no-fault rule, the claimant makes a lawsuit against the other driver, regardless of whether or not the other driver is licensed, and is only compensated if the other driver is found to be at fault.  

PIP insurance is usually required where it applies and only covers bodily injury, not vehicle harm. PIP policyholders receive timely payment from their insurance provider, but their ability to sue for general damages is typically limited. When traveling in states with no-fault rules, motorists covered in states with liability laws should make sure their insurance protects them. The majority of insurance providers immediately expand their plans to include no-fault states. 

PIP Medical Expenses Insurance 

Personal Injury Protection (PIP) may be purchased solely for medical expenses. Hospital costs for those injured while traveling in your vehicle are covered by PIP medical expenses, regardless of fault. Depending on your insurance, it can even cover medical expenses if you or a member of your family is injured while riding in someone else’s vehicle or if you are struck by a car while walking.  Unlike most health insurance plans, an automobile policy’s medical payments section covers all medical expenses incurred, with no deductibles or copayments. 

You do not need this protection if you have comprehensive health insurance, which also protects anyone riding in your vehicle. In certain states, you have the option of choosing your PIP health insurance provider, which may be anyone other than your auto insurance company. 

Uninsured and underinsured drivers insurance 

It would help if you had uninsured motorist insurance to protect yourself from uninsured motorists and hit-and-run accidents (whether driving or walking). In several jurisdictions, uninsured motorist regulations have been introduced, requiring insurance providers to provide coverage for injuries incurred by uninsured motorists in their standard policies.  Uninsured motorist coverage usually is equivalent to the state’s minimum financial obligation limits, and in some states, it is required.  

You usually don’t need uninsured motorist coverage if you have accident insurance. Underinsured motorist coverage is similar to uninsured motorist coverage, which protects you when another driver is at fault but may not have enough protection to cover your injury or property harm (although he has sufficient assets, you can still sue him). 


Collision and Comprehensive coverage 

Collision insurance covers damage to your car caused by you, regardless of who caused the damage. Collision insurance typically has a penalty; the more significant the deductible, the lower the rate. The value of your car typically determines if collision coverage is appropriate.  Fire, theft, arson, animal accidents, hurricanes, flooding, riots, explosions, earthquakes, dropping objects, and unintended glass breakage, such as from a stone thrown up by another car, are covered under comprehensive coverage. It does not protect you in the event of an accident involving other vehicles or objects, for which collision coverage is required. The excess on comprehensive coverage usually is smaller than the excess on collision coverage.

Check out our blogs for info on finding top-rated airport parking, the best parking spots in your city, and affordable car washes near you.

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