Which Parts Of A Car Insurance Policy Are Not Required By State Laws?

By Sharon Gibson Posted in Car Insurance News

States Set The Requirement For Minimum Liability Coverage

Each state in the US sets the amount of minimum auto insurance coverage required for motorists registered in that particular state. These laws can change from year to year, so a state that had a low minimum requirement last year could require much more this year. It is important to keep an eye on any changes that your state makes to the minimum insurance requirement laws.

The type of auto insurance that is necessary in all states that requires coverage is liability insurance. Liability insurance covers your financial responsibility towards people other than yourself and your passengers and towards property other than your car. Three numbers separated by slashes express the amount of liability insurance on your policy. Theses numbers represent the maximum amount of money your insurer will pay out per person for bodily injury, total per accident for bodily injury, and total for property damage respectively.

Collision And Comprehensive Coverage Are Not Required By State Law

Drivers who wish to have more coverage that the state minimum often get what is known as full coverage. Full coverage auto insurance has liability as well as collision and comprehensive. Collision coverage is in place to cover damage caused to your car in case of a collision. Comprehensive coverage covers damage to your car that is caused by something other than a collision. This includes damages caused by fire, hail, animals, and more. In order for a driver to have collision coverage, that driver must have comprehensive coverage. However it is possible to have comprehensive without having collision. Even though states do not require collision and comprehensive coverage, you may be required by your lender to carry full coverage if you still owe money on your car.

Along with liability, collision, and comprehensive, there are many add-ons that you can put on your insurance policy. Rental car insurance and roadside assistance are examples of additional coverage that you can add to your policy. Also any modifications made to your car such as after market wheels or performance enhancements will require additional coverage. Although having these add-ons on your insurance policy may be a good idea, state law never requires them.

Related posts:

  1. Collision And Comprehensive Car Insurance; What’s The Difference?
  2. What Is Comprehensive Car Insurance?
  3. What Are The Best Liability Coverage Limits?
  4. How Do I Acquire Cheap Car Insurance?
  5. New Minimum Florida State Requirements For Jacksonville Auto Insurance

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