All fifty states require auto insurance if you own a car. This is mostly to protect other drivers if you are at fault. However, you should also get a provision against uninsured drivers. This will protect you if someone without insurance hits you, causing damage to your car or injuring you. This is a common provision in auto policies. The national average of car insurance in the U.S. is $1,400. This will vary if you have an expensive car, have just gotten your license, or have a bad driving record. Below are some potential types of coverage you can have.
Coverage A: Liability Coverage
If an accident is your fault, by law you must pay for the damages. This includes both property damage and bodily injury to another. Some states have no-fault property damage laws, eliminating the need for lawyers, and thereby reducing costs. In this scenario, your insurance company fixes your car, and my insurance company fixes my car. However, no-fault does not apply to bodily injury.
Coverage B: Medical Payments Coverage
If you are at fault, your insurance company pays any medical bills for the other person. This is the law.
Coverage C: Uninsured or Underinsured Motorist Coverage
If the other driver is at fault and has no insurance, you are covered by your policy. This is a good provision to have.
Coverage D: Collision and Comprehensive Coverage
Collision covers damages to your car if you are at fault in an accident. Comprehensive covers all other damages or loss to your car, such as theft, vandalism, floods, hail damage, and other unhappy events.
The deductible is the amount you pay out of the total of each claim. You can choose the deductible, but it normally ranges from $250 to $1,000. The higher the deductible, the lower the premium, because you will not bother your insurance company every time your car gets a dent or scratch. Many insurance companies also offer a discount for safe drivers. Note that each state has a different minimum insurance coverage required.