Car insurance is required for drivers throughout the United States, in 49 of 50 states. However, with so many car insurance companies and policy options, it can be a bit daunting to decide which coverage to choose.
New Hampshire is the only state that doesn’t require drivers to carry car insurance, but even there, proof of financial responsibility is necessary.
If you've been in a car accident, you know how important it is to have the right car insurance. In this blog, we will explore the five types of insurance coverage that are considered “must-have.”
There are two different types of liability insurance: bodily injury and property damage. As the names suggest, these cover injuries suffered by the vehicle occupants and any damages to vehicles or other property caused by the accident.
Most states have a minimum liability insurance threshold. In Texas, for instance, drivers must have at least $30,000 in liability coverage for each injured person, up to a total of $60,000 per accident, alongside $25,000 for property damage per accident.
Personal Injury Protection insurance, often shortened to PIP and otherwise known as no-fault insurance, can help to cover expenses that liability insurance doesn’t. This includes medical bills, lost wages, and even funeral costs for the driver and passengers after an accident.
No-fault insurance is required in the following states:
- New Jersey
- New York
- North Dakota
- Rhode Island
Conversely, there are several states in which no-fault insurance is not regulated, while it is optional in these states:
- New Hampshire
- South Dakota
Underinsured motorist (UIM) insurance serves to cover the at-fault party in the case of an accident when they don’t have enough coverage for the damage they caused. It is often put in the same category as uninsured motorist (UM) insurance because the two are so similar. UM insurance is designed to help cover damages when the at-fault party does not have liability insurance.
Unlike liability insurance, collision insurance provides coverage regardless of fault. As the name suggests, collision insurance covers your car if you hit another vehicle, a person, or a non-moving object. However, collision doesn’t cover you if you hit an animal.
Even if you’ve chosen to get all four of the insurance policies listed above, comprehensive insurance is a good option for those drivers who want to be especially covered. Comprehensive coverage is often sold alongside collision insurance and helps to fill in the gaps left behind by the other policies by protecting your car from theft, fire, vandalism, severe weather, or hitting an animal in the road.
Call Our Car Accident Lawyers
As car accident attorneys, our team at Arnold & Itkin has helped recover millions for those injured in motor vehicle accidents throughout Texas and beyond. With years of experience serving our clients, you can trust us to put you first and seek the justice and compensation you deserve. No matter what.