Unlike health insurance, car drivers and owners are required to carry car insurance. Depending upon what state you live in the type of car insurance policy you must have will vary. Here we’ll explore some of the top three types of car insurance policies that some states require you to carry.
Liability Car Insurance
Almost every state in the United States requires that you carry a car insurance policy that has liability coverage. Liability insurance will cover any damage that is done to the other car should an accident occur and is considered the most basic type of car insurance available to purchase. If you are responsible for the car accident your insurance will cover repairs and damage to the other person’s car.
Injury Liability Insurance
Some states require injury liability coverage as a mandatory part of the car insurance policies companies offer. Injury liability insurance or coverage will cover any injury and/or lawsuit that happens as a result of an accident that you are responsible for causing. While it will not cover your injuries, it will cover both passenger and driver in the car you hit.
Collision Insurance Coverage
Collision insurance coverage is often optional. The only time it may be required is if you still owe a balance on your car. In that case, your financing company may require you to hold collision coverage in addition to liability coverage. Collision coverage will help you recover the cost of damages to your car. Collision coverage can be used regardless of if the accident was your fault or the other driver.
Many people choose to have collision coverage because it helps protect you in case the other driver did not carry insurance.
Liability, injury liability and collision are the three main types of car insurance policies that are usually required by law. Every state has differing car insurance requirements. So before you purchase your policy from a car insurance company it is a good idea to research what type of coverage is required by your state. This will allow you to be properly covered while you are driving.