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Car Insurance Options

In most states, auto insurance is the law, but the types of car insurance options that may be required varies from state to state. In some states, car insurance requirements are minimal and in others, only the maximum coverage is acceptable by the law. Automobile insurance is a contract between a policyholder and an insurance company designed to cover losses resulting from accidents, vandalism and theft.

There are several types of car insurance options available today, and there are a number of factors the potential policyholder must take into consideration before purchasing a policy including: state requirements, whether your state is a fault or no-fault state, car type, car usage, etc. In general, auto insurance considers liability for physical injuries to other persons, legal fees if you are sued by other persons, damage to the other person’s vehicle or your vehicle and liability for any physical injuries to other persons. Depending on the type of coverage, an insurance policy may cover all of these risks.

There are three types of car insurance options including: liability, medical expense and collision. Liability insurance does not cover the policyholder; it only covers personal injury and vehicle damage to the other driver. The medical expense car insurance option covers the policyholder’s personal injury and the collision car insurance option covers property damage to the policyholder only. When considering car insurance options, opt for auto insurance that covers you and the other driver. The out-of-pocket costs for damages are far higher than the monthly premium.