The Availability Of Car Insurance Coverage In The US
What types of auto insurance policies is available in the USA? This is a question that many may ask, and because automobile insurance is the law, it is an necessary one.
The consumer may be protected with different coverage types depending on what coverage the insurer purchases. Some states in America demand that motorists carry liability insurance coverage to cover the expenses in the event of an automobile accident. Some states, e.g. Wisconsin, have more flexible “proof of financial responsibility” requirements.
In the United States, liability insurance covers claims against the policy holder and generally, any other operator of the insured vehicles, provided they do not live at the same address as the policy holder, and are not specifically excluded on the policy. In the case of those living at the same address, they must specifically be covered on the policy. Thus it is essential, for example, when a family member comes of driving age they must be added to the policy. Sometimes Liability insurance does not cover the policy holder when driving other vehicles than their own.
When you drive a motor vehicle owned by another person, you are covered under that party’s insurance policy. Non-owners insurance policies may be offered that would cover an insured on any car they drive. This coverage option is only available to those who are not owners of their own vehicle, and is required by the government for drivers who have been found at error in an accident in the past. Non-owners policies are also known as Named Operator Policies. The policies are useful for drivers whose drivers license has been suspended and they have to have insurance for their license to be reinstated.
Generally, liability coverage extends when you rent a auto. Comprehensive policies (”full coverage”) normally also apply to the rental vehicle, although this should be verified in advance. Full coverage premiums are based on, among other factors, the value of the insured’s vehicle. However, this coverage cannot apply to rental cars because the insurance company does not want to take the responsibility for a claim greater than the value of the insured’s vehicle.
Most rental auto companies offer insurance to cover damage to the rental vehicle. These policies may be unnecessary for many customers as credit card companies, for example Visa and MasterCard, now provide additional collision damage coverage to rental cars if the transaction is processed while utilizing their cards. These benefits are restrictive in terms of the types of vehicles covered.
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