In the US, car insurance is a mandatory requirement. In order to get a permit to drive, you need to have an insurance for your vehicle. Each state has different laws and requirements for car insurance. Some states require drivers to carry liability coverage of $25,000/$50,000/$100,000 in case they cause injury or property damage in an accident. Other states require drivers to carry liability coverage in accordance with the state’s financial responsibility law. According to the Association of California Insurance Companies (ACIC), there are seven types of coverage that people can buy:
Liability only
Liability and comprehensive
Liability and collision
Comprehensive only
Collision only
Uninsured motorist bodily injury
Underinsured motorist bodily injury
Auto insurance is a type of insurance that covers vehicle damage or physical harm that may result from collisions, theft, vandalism, fire or natural disasters.
There are various parties involved in the auto insurance industry. Some auto insurers offer coverage for private passenger autos, commercial autos (e.g., taxis), and specific types of construction equipment (e.g., concrete pumps). The following are some common parties involved in the auto insurance industry:
The American Automobile Association (AAA) reported in 2016 that the average annual premium for an individual in the United States was $889.
A driver’s age, driving record and type of car one drives can all affect how much they pay for car insurance. For example, a driver who is young, has a clean driving record but drives a 2005 Chevrolet Camaro Z28 will pay on average $1,272 per year for car insurance. If that same driver has a 2006 Chevrolet Camaro SS with the same clean driving record, they will only pay an average of $1,025 per year.
Certain factors determine what type of coverage you’ll need to get to insure your vehicle:
– The make and model of your vehicle
– Your state
