US vehicle insurance policy covers injuries and property damage to another person in addition to personal damage to the policyholder. The insurance policy can cover a range of mishaps, such as accident, fire, theft, vandalism and other natural disasters. Insurance companies offer a range of policies to cover varied and individual needs of a policyholder.
Essential Facts about US Vehicle Insurance
Vehicle insurance is under jurisdiction in the United States. It is mandatory to buy vehicle insurance across all the states in the US. The minimum cover as defined by the law tends to differ from state to state. Some states require a minimum third party cover under the US vehicle insurance policy. Other states may have less than third-party cover as a minimum requirement. If a person is caught without proper US vehicle insurance by the authorities, he/she can be heavily fined or put behind the bars.
Some of the US states have a rare distinction of being 'non-fault' insurance states. This means that insurance companies operating in such states have to pay for damages caused to an insured vehicle. This happens irrespective of who is responsible for the accident. However, in other states that do not have this 'non-fault' insurance status, the individual who is at fault during an accident, or his insurance company, has to pay the damage.
US Vehicle Insurance Coverage
There are two broad types of US vehicle insurance covers: liability insurance and comprehensive insurance.
Liability insurance provides cover against the damage caused to a third person due to an accident. A basic liability insurance policy will not cover personal damage to the insured damage. However, comprehensive insurance will cover damage caused to the insured vehicle and policyholder as well. It involves repair and remodeling expenses. In case of theft, an insurance company is liable to pay market value or provide a similar car to the insured party.
It maybe noted that an individual is covered under the vehicle insurance USA policy if he/she is driving the owned car.
If an accident happens when the individual is driving another person’s car, then the liabilities would have to be paid as per the policy of the owner of that particular car.