When it comes to car liability insurance coverage, all states require drivers to carry Bodily Injury and Property Damage Liability. This specific coverage provides protection for claims that are made against an insured driver who is at fault in an accident that caused bodily injury or property damage.
Carrying car liability insurance coverage is one of the ways by which drivers can comply with the financial responsibility law required by all states. This law specifically requires drivers in the U.S. to show their financial capability in paying for damages resulting from accidents due to their fault.
Coverage requirements vary from one state to another, though. Thus, besides Bodily Injury and Property Damage Liability, majority of U.S. states require drivers to carry other types of insurance coverage, such as:
Personal Injury Protection (PIP) or Medical Payments Coverage. Both types of coverage pays the cost of medical treatment that you and your passengers will require in the event of an auto accident, regardless of whose fault the accident was. However, PIP provides more benefits as it includes lost wages, funeral costs, rehabilitation services, and other services, like childcare, which an accident victim may be unable to perform due to the injuries sustained in an accident.
Uninsured Motorist Coverage (UM): This coverage is designed to cover all economic losses and damages due to accidents caused by drivers who do not have the financial capability to pay for the damages and losses suffered by an accident victim. This coverage will prove totally beneficial also if the vehicle involved in an accident were stolen or if the accident were a case of hit-and-run.
Underinsured Motorist Coverage (UIM): UIM is designed to cover the amount which an at-fault driver’s insurance policy is not able to cover. This usually happens when the at-fault driver’s liability limits are too low to cover all damages and losses suffered by an accident victim.
Collision Coverage: This coverage provides for losses (property damage) suffered by the insured or policy holder.
Comprehensive Coverage: This coverage provides for damage of loss of a vehicle due to reasons other than collision, like fire, theft, vandalism, falling objects, explosion, earthquake, flood, civil commotion and accidental glass breakage.
Bodily Injury and Property Damage Liability plus any of the other coverages mentioned above are just few of the reasons why insurance policies are too costly. One other major reason why insurance premiums are high, especially for male drivers aged 25 or below, is due to the “high-risk” driver classification. Besides one’s age, a driver may also be tagged by car insurance firms as a “high-risk” driver if he or she has already been involved in a car accident wherein he or she is at fault, is driving a high-powered sports, has past traffic violations, especially reckless driving or DUI, has only a few years of driving experience, or has been required by the court to carry an SR-22 filing.
The monthly car insurance premium in the U.S. ranges from a little less than $100 to a little more than $200. Whether you pay a higher premium, however, this does not mean that you will get better services as there is no correlation between cost of premium and the quality of service you will be provided with.
One thing is sure, though: this amount is too big compared to the monthly premium you might be required to pay if you will seek the services of an independent insurance firm for your insurance needs.
According to the website of Second Gear Magazine, some independent car insurance firms provide customers with as many as a dozen free online insurance quotes to help them obtain the coverage they need at a price that fits their budget. Besides this, these firms also offer multiple payment options, have bilingual customer service representatives who are available to answer customers’ questions and help them meet their needs whenever they call, and provide 24/7 roadside assistance – these and many more benefits for a monthly premium that can be as low as $35.Read More »