Types Of Insurance Coverage Available In The United States Of America
What types of car insurance policies are available in the United States? This question is often asked and very necessary, seeing it is compulsory to have automobile insurance.
The consumer may be protected with different types of coverage depending on what insurance coverage the insurer purchases. Some states in the USA necessitate that automobilists carry liability insurance coverage to ensure that their drivers can cover the cost of damages to people or property in the event of an automobile accident. Some states, such as Wisconsin, have more flexible "proof of financial responsibility" requirements.
In the US, liability insurance covers claims against the policy holder and generally, any other operator of the insured vehicles, provided they do not live at the same address as the policy holder, and are not specifically excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. Thus it is essential, for example, when a family member comes of driving age they must be added to the policy. Sometimes Liability insurance does not cover the policy holder when driving other vehicles than their own.
The other party's insurance will cover you when driving their vehicle. Non-owners insurance policies may be offered that would cover an insured on any automobile they drive. This coverage is accessible only to those who do not own their own vehicle and is sometimes required by the government for drivers who have previously been found at error in an accident. Non-owners policies are also known as Named Operator Policies. Drivers whose license have been suspended will find these policies useful.
In The Main, liability coverage extends when you rent a auto. Comprehensive policies ("full coverage") normally also apply to the rental vehicle, although this should be verified in advance. Full coverage premiums are based on, among other factors, the value of the insured's automobile. However, this type of coverage cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured's vehicle, assuming that a rental auto may be worth more than the insured's vehicle.
Most rental auto companies offer insurance to cover damage to the rental vehicle. These policies may be unneeded for many customers as credit card companies, e.g. Visa and MasterCard, now provide alternative collision damage coverage to rental automobiles if the transaction is processed using one of their cards. These benefits are limited in terms of the types of vehicles covered.
The consumer may be protected with different types of coverage depending on what insurance coverage the insurer purchases. Some states in the USA necessitate that automobilists carry liability insurance coverage to ensure that their drivers can cover the cost of damages to people or property in the event of an automobile accident. Some states, such as Wisconsin, have more flexible "proof of financial responsibility" requirements.
In the US, liability insurance covers claims against the policy holder and generally, any other operator of the insured vehicles, provided they do not live at the same address as the policy holder, and are not specifically excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. Thus it is essential, for example, when a family member comes of driving age they must be added to the policy. Sometimes Liability insurance does not cover the policy holder when driving other vehicles than their own.
The other party's insurance will cover you when driving their vehicle. Non-owners insurance policies may be offered that would cover an insured on any automobile they drive. This coverage is accessible only to those who do not own their own vehicle and is sometimes required by the government for drivers who have previously been found at error in an accident. Non-owners policies are also known as Named Operator Policies. Drivers whose license have been suspended will find these policies useful.
In The Main, liability coverage extends when you rent a auto. Comprehensive policies ("full coverage") normally also apply to the rental vehicle, although this should be verified in advance. Full coverage premiums are based on, among other factors, the value of the insured's automobile. However, this type of coverage cannot apply to rental cars because the insurance company does not want to assume responsibility for a claim greater than the value of the insured's vehicle, assuming that a rental auto may be worth more than the insured's vehicle.
Most rental auto companies offer insurance to cover damage to the rental vehicle. These policies may be unneeded for many customers as credit card companies, e.g. Visa and MasterCard, now provide alternative collision damage coverage to rental automobiles if the transaction is processed using one of their cards. These benefits are limited in terms of the types of vehicles covered.
Source...