The Wrong Type of Car Insurance May Well Land You in Jail
To benefit from this protection the policy holder has to pay a regular premium which depends upon a wide variety of factors like the driver's age, the car in question, the driver's record and location to name just a few.
There are presently several different types of car insurance to protect the policy holder from costs associated with damage to the vehicle, property damage and bodily harm of all persons involved in a vehicular accident.
The various different forms of car insurance cover include: Liability cover which is designed to pay for damages to other people or to their property as a consequence of a car accident and which also meets any court costs involved.
In many states liability cover is the bare minimum of cover required before you are permitted to drive a car on public roads.
Collision cover which provides payment for damage caused to your vehicle in the event of a collision with another car or other object.
Comprehensive cover which will pay for several forms of damage including theft, fire, vandalism and damage resulting from severe weather.
Medical cover which is designed to pay for medical expenses for injuries resulting from a car accident.
PIP (Personal Injury Protection) cover which is designed to pay for any medical expenses when an injury is sustained in an automobile accident, regardless of whose fault it is.
Uninsured and under-insured cover which is designed to pay for damages which you sustain when the other driver involved in a car accident does not have insurance.
Every state has its own rules governing car insurance and some forms of insurance will be mandatory in a particular state while others will be purely optional.
For instance, some states only require you to have liability insurance while others insist upon PIP insurance cover.
There are also several states that are known as 'no-fault' states where policy holders can recover financial losses from their own insurer, irrespective of who is found to be at fault in an accident.