Reasons Determining the Type of Car Insurance in USA

May 17, 2017 · Posted in General 

Anyone who operates a automobile in the United States must have car insurance. Car insurance is a legal responsibility in all fifty of the United States. Your state’s minimum amount of car insurance may not be enough to meet your needs for car insurance. Be sure that you do some research to see the exact amount of insurance you need before making a purchase.

Even though your state probably requires that you have liability insurance, the amount that is required may not be enough to meed your real needs. Vehicle prices and the cost of medical care have increased rapidly over the past decade and state laws have not kept pace with inflation. It is very likely that if you were to total another person’s vehicle or cause someone to go to the hospital as a result of an auto accident, that the bill could be more than the amount of your state’s minimum liability cost.

Most auto finance companies require that persons borrowing money to buy a vehicle have full coverage auto insurance. This includes comprehensive and collision coverage. The comprehensive coverage is to take care of your needs for damage to your vehicle resulting from theft, glass breakage or vandalism. The collision covers damage resulting from a car wreck where you are the driver that is at fault.

If your vehicle is a total loss, the insurance company will pay off the balance of your loan before paying any money to you. If there is still money left over after paying off the loan, they will write you a check to use toward the replacement of your vehicle.

Many times, with very new vehicles, there is a gap between what is still owed on the car and what the insurance will pay for the totaled car. This can mean that you not only lose your vehicle, you still owe money on the loan. Gap insurance is an inexpensive way to be sure that you do not owe more money on a vehicle that you can no longer drive.

If you own an antique vehicle, then you will want special insurance for that vehicle. Antique and specialty vehicle insurance often requires that your vehicle be parked in a garage overnight and limits the number of miles that you can drive the vehicle in a year. It does cover loss if you are showing your vehicle in a car show and suffer a loss. Antique vehicle insurance does not include liability, so you will need to be sure that you have the required coverage before taking your car on the public roads.

You can find the insurance quotes you need and have your insurance questions answered through many insurance websites or by contacting a local insurance agent.

If you drive an automobile, you are required to have car insurance. The statutes in every state require you either have car insurance or proof of your financial responsibility. Car insurance quotes are therefore a must.

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