In the United States, the issue of car insurance is divided into coverage. The normal thing is to start with basic insurance and get additional coverage. The different types of car insurance coverage are contracted by each individual according to their needs and preferences.

Car insurance, beyond being an obligation stipulated by law, is a necessity. With it, you can protect yourself and your finances to avoid having great losses in the future. If not, you will run the risk of getting into an accident and having to shoulder the liability and financial responsibilities. The price to acquire a car insurance policy in the United States may vary depending on the city or state in which you are located and so, that is why you have to compare car insurance companies and what they offer.

The Factors Considered

These insurance policies are based on certain factors such as:

The services offered
Driving record or history
Age and gender
Value of the vehicle
Location
Your credit

How is the premium calculated for different types of car insurance policies? For the insurer to calculate the amount to pay for auto insurance, location is one of the key components considered. Age, driving record, payment history, population index, traffic congestion, and cost of living are factors considered to determine the value of the policy. Most people always look for a way to obtain a policy that fits their budget and offers a solution to any unforeseen event, without having to lower their quality of life. Before contracting any car insurance, it must be clear on the types of coverage offered. For that, and always in general, read the contract well.

The Influence of Age

The reality is that yes. Age does matter when it comes to insurance. Insurers have a much higher cost for young drivers between the ages of 16 and 29 than for those between the ages of 39 and 69. This is due to studies carried out by US insurers where their result indicates that young people are more likely to cause fatal accidents due to their little driving experience and maturity level. When you are a senior, your insurance policy will increase by 50% because your senses are not as alert as in youth and you are more likely to cause accidents. Insurers determine the cost of the policy by two very important factors: the value of the car and the risk of the driver.

Full Auto Coverage

This type of protection is a combination of coverage for financed or rented vehicles (Lease). Liability and PIP will be mandatory, and they will be added according to the stipulations of each contract: protection against uninsured car, coverage for collisions, trailers, rental reimbursement, and sound equipment; among others.

Personal Injury

PIP (Personal Injury Protection) insurance is intended to protect the driver and passengers in the event of physical damage to the insured car. It protects you by covering medical expenses and funeral expenses. This policy does not take into account whose fault it is, it always pays. In certain states, personal injury protection is mandatory.

Civil Liability

An accident that causes damage to third parties generates a high outlay of money for the person responsible, mainly due to civil liability and lawsuits. Liability or civil liability insurance covers injuries or material damage to third parties caused by the insured's car. It does not cover the driver or his property. This type of insurance is mandatory in most states. It is very important, as it enables the driver to feel protected in the event of causing damage in an accident.

Bodily and Property Damage Liability Coverage

Liability insurance covers bodily injury and property damage:

Liability for bodily injury involves paying costs for someone else’s injuries or having the insurance pay it for you. This is why it is important to have auto insurance. When and if you have an accident, it always involves other people.

The same is true for property damage. You will have to repair the other person’s vehicle. Make sure your insurance covers this.

Comprehensive Coverage

If you experience damage to your vehicle due to theft, hail, fire or vandalism, the comprehensive insurance covers it. One thing to be aware is that there is a deductive and so you may have some out of pocket cost to pay prior to being reimbursed by the insurer after your claim is approved.

Welcome to the Insurry Store. Get Education, Find Offers.

GET MEMBER KEY

Collision Coverage

This type of coverage helps you with repairs to your vehicle in the event of an accident. If the vehicle cannot be repaired, you could get a replacement vehicle up to the actual value minus your deductible.

Medical Payments

In lieu of an accident, your insurer will pay for the cost of medical treatment; especially if you are injured in the accident. This includes reimbursement for surgery, hospital visits, X-rays and medical tests; among other related things.

Motorcycle Insurance

Motorcycle insurance covers property damage, bodily injury, emergency expenses, theft, and other coverage options. This type of policy is very necessary for those who like to drive motorcycles, due to the high exposure that two-wheelers have on the road.

Truck Insurance

Truck insurance is not exactly the same as auto insurance. With this policy, you receive collision coverage, liability coverage, bobtail insurance, trailer insurance, and cargo insurance; among others.

The Main Characteristics

You must know the main characteristics associated with auto insurance in order to contract the policy that ideally suits you:

Deductibles

They are the minimum amount that you must pay before you can enjoy the benefits of the policy that you contract. In general, the amount of deductibles is calculated based on the value of the car. For example, if the deductible stipulated by the insurer is 5% of the value of the vehicle and you have a car whose cost is 35,000 USD, the deductible that you will have to pay will be 1,750USD.

Premiums

Insurance premiums are the financial contribution that you must make in each of the coverage that you contract. It is the money that you give to insurers to obtain protection.

Insured amount

Insured amount is the minimum amount stipulated by insurers for each policy. This figure can be determined at the time you take out the insurance. Depending on the calculation along with other elements, the value of the premium may vary.

Insurance coverage

These are the different types of protections that you can obtain to reduce the most common risks that you have when driving. It can be coverage against theft, claims, vandalism, natural disasters, and civil liability; among others.

Policy duration

They stipulate the length of time for which you are contracting the insurance. Normally its durability can be from six months to a year. However, there are insurance policies that protect your vehicle for the time that you need, whether for days, weeks or months.

There are different types of car insurance that you have the chance to consider. The choice will all depend on your personal situation; among other things.

Car Insurance Companies

Now, let us take a close look at some of the different types of car insurance companies in the USA and what they offer:

USAA

USAA is known for its customer service. Most customers love the company’s easy process for filing a claim, as well as the frequent updates on the status of claims.

Like most other auto insurance companies, USAA policies offer:

Liability for bodily injury
Liability for property damage
Collision and comprehensive coverage
Uninsured motorist coverage
Personal injury protection and medical payments

Geico

Geico is well known and popularly known to most Americans for its ease in filing claims and renewing insurance policies. Most customers indicate that they would recommend Geico to friends and family. There are others who find that they are less satisfied with the kind of value Geico provides.

GEICO's extensive coverage options include:

Liability coverage
Collision and integral
Personal injury protection
Uninsured motorist coverage
Guaranteed asset protection insurance (GAP)
Mechanical breakdown insurance
Shared trip insurance
Emergency roadside assistance
Car rental reimbursement

You will enjoy discounts, if you can provide that the vehicle has:

Airbags
Anti-lock brakes
Anti-theft system
It is a new vehicle

Allstate

This car insurance company has a high level of customer service and has been around for a while now. You can easily file your claims online or over the phone. Because of the fierce competition in the car insurance industry and a lower level of customer service, Allstate has dropped in popularity like it used to be.

State Farm

While not being as popular as the car insurance companies above, this company still hold its own in terms of rates and customer service. The different types of car insurance coverage include:

Liability
Collision coverage
GAP insurance
Roadside assistance
Uninsured motorist coverage
Underinsured coverage
Travel and car rental expense reimbursement

Progressive

You all know Flo is that woman who advertises on the television for the company and shares the different types of car insurance available. Many people who watch her view this as a means of referral to contact the company about auto insurance. Within the past 4 years, Progressive has earned its reputation and popularity because of Flo.

When it comes to automatic coverage, Progressive offers:

Liability for bodily injury
Liability for property damage
Collision and comprehensive coverage
Uninsured motorist coverage
Personal injury protection and medical payments
GAP coverage
Umbrella insurance policies

When it comes to discounted coverage, Progressive offers:

For potential customers who obtain quotes online and subsequently enroll on that platform, there are specific discounts
Discounts, if the individual has multiple automobiles
Discounts for teen drivers under the age of 18
High school
Signing up for automatic payments will get you a discount
If you sign up for paperless monthly statements, you will get a discount
If you pay the entire year’s premium, it will be discounted
If you renew your policy with them, you will receive a discount

CHOOSE WISELY

When you are considering certain types of car insurance policy, it is best to choose the company that provides you with more choices. You have to also think about your own personal needs and choose your policy based on the things that are most significant to your life. Geico does offer low auto insurance quote and rates, but there are also other companies that do and they may not necessarily have the choice that is right for you.

According to a few customer reviews, Allstate is an excellent choice, if you are a high risk driver because of their great coverage. Amica is known for its high level of customer satisfaction when it comes to claims. State Farm gives personalized and customized experience to its customers and USAA gives lots of military and staff discounts. Therefore, it is best that you do your homework, find out which company has exactly what you are looking for and stick with them.

Conclusion

Just like auto insurance policies change on a constant basis, personal circumstances are also subject to change. Every person has different circumstances and need different recommendations as it relates to insurance policies. Maybe you've reached an age where you're eligible for certain discounts, or maybe you're considering adding another car. Regardless of the situation, take a good look at your auto insurance policy and make sure it still works for you. If it does not, then it may be time to switch.

Pull Up Here to Learn the Different Types of Car Insurance