What Everybody Should Know About Car Insurance In The USA
The USA auto insurance includes 6 basic types
The fist 2 types seem to be the most important that’s why they are completely indispensable all over the country. This is the third-party liability insurance for either health or property damages caused in an accident. Each state sets the insurance coverage limits. In California for example the following indexes are conventional – 15/30/5 – this obligates a driver to have a policy with the minimum third-party liability insurance with a count for $15.000 if a person was hurt, $30.000 f more than one person were hurt and $5.000 for material damage coverage. In New-York and in Columbia the parameters are similar – 25/50/10, Norton auto insurance implies – 50/100/25.
With the minimal coverage sums as the result the cost of the policy itself is lower. For many people it gives a tempting opportunity to save money on the insurance operation. Still experts alert for such approach for these policies do not provide enough coverage in case of serous collisions. Jane Neagl, the Insurance Institute representative, thinks that the optimal indexes for the insurance coverage should be 100/300/50. It is explained in the following way – if the car owner with the minimal insurance coverage policy damage in New-York, for example, a “Mersedes 500” for $50.000 the insurance company will pay for the car repairing $10.000 according to the policy and the rest $40.000 the company will claim from the guilty in the judge court with all the consequences.
The third insurance type – is the personal defense in case of injury. It covers medical expenses and financial looses in the case of driver’s or his passengers’ terminal disability to work. This kind of policy is beneficial for those who have low, if any, medical insurance coverage.
The following 2 types of insurance are not obligatory in the USA. The fourth one is the insurance for the case of collision when the material damage caused to the car by its owner himself is covered. The fifth one is “the all-over insurance” which covers the damages caused by natural hazards – floods, earthquakes, and also in cases of a car being driven away. These 2 types of insurance imply repair expenses payment according to market prices which should be aid by the client due to the agreement with the insurance company.
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