If you are a driver in the US, you need to have auto insurance so that you could protect not only yourself and your vehicle but the other vehicles involved in the accident. Every state in America now requires all drivers to have an active auto insurance policy in force to drive legally on public roads

There are several types of auto insurance policies that are currently offered in the market. The first one would be the liability insurance in which there are two kinds, : bodily injury and property damage. In the insurance world, we commonly notice numbers like 20/40/10.

This indicates that a car insurance carrier would cover up to $20,000 for bodily injury for a single individual, $40,000 in an accident and $10,000 for property damage in an accident.In this case, your total liability coverage is some what low

You have to review your condition and lifestyle and make a decision which one best suits you. As already cite, almost every state mandate the drivers to have at least liability insurance.

Collision is the second type of insurance option. In the event of an accident that you cause to other people, collision coverage would pay for the damages and medical bills. To pay for the damages caused by vandalism, fire, storm or other natural causes and even theft, comprehensive coverage will pay for it.

Uninsured motorist coverage will cover the cost to repair the damage in case you get into an accident with a driver that doesn’t have insurance. Underinsured motorist coverage will cover you in case of an accident wherein the other driver doesn’t have enough coverage.

Another form of auto insurance would be the personal injury protection (PIP) that would cover medical expenses and other charges like loss of wages and funeral costs because if the accident. PIP has been a requirement in 16 states and this would pay regardless who was at-fault during the accident.19

We also need to take car of no fault auto insurance which has caused so much confusion among a lot of people. no-fault auto insurance means that the company will pay for the damages you have caused by a car crash. In this system, every driver in an accident will be covered for the damages no matter who is at-fault.