What types of automobile insurance policies is available in the USA? This question is often asked and very significant, seeing it is compulsory to have auto insurance.
The consumer may be protected with different types of coverage depending on what coverage the insurer purchases. Many states require that motorists carry liability insurance coverage to cover the expenses in the event of an automobile accident. Some states, for example Wisconsin, have more flexible “proof of financial responsibility” requirements.
Liability insurance covers claims against the policy holder in the United States. Generally, any other motorist 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, their names must be specified to 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.
When you drive another party’s motor car, their policy is obliged to cover you. Non-owners policies may be offered that would cover an insured on any car they drive. This coverage is available only to those who do not own their own vehicle and is sometimes mandatory by the government for drivers who have previously been found at fault in an accident. Non-owners insurance policies are also known as Named Operator Policies. Drivers whose drivers license have been suspended will find these policies useful.
In The Main, liability coverage covers when you rent a car. Comprehensive insurance policies (“full coverage”) normally also apply to the vehicle you rent, although this should be verified beforehand. Full coverage insurance premiums are based on, among other factors, the value of the insured’s vehicle. 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.
Most rental auto companies offer insurance to cover damage to the rental vehicle. The above policies may be unnecessary for many users of credit cards, like Visa and MasterCard, seeing that the companies now cater for alternative collision damage coverage to rental motorcars provided that the transaction is processed while utilizing one of their cards. These benefits are restrictive to the vehicle types that are covered.
