How does car insurance work in USA?

Car insurance is a very useful financial tool to protect the assets that the purchase of a vehicle represents. Applies to both individuals and companies. Each vehicle that is sold leaves the agency with insurance. This occurs primarily as protection for the selling company in case something happens to it before payment is finished.

What does auto insurance cover?

Car insurance must mainly be insured for civil liability to third parties , both in bodily injury and material damage to the property of other people not related to the vehicle. This protection is mandatory by law in all states of the country.

They also protect for medical payments, especially in states where it does not matter who is responsible, since this coverage protects the driver and his companions in the event of any accident. It is also mandatory in several states.

Other related coverages are those of uninsured or under-insured vehicles, in which case the insurer itself covers the property damage of the insured vehicle.

Additionally, there are Collision and extensive coverage, which protect the vehicle against material damage and theft. These are not mandatory but they are necessary for greater investment protection against the most common risks. They are also a requirement of the car dealerships while the vehicle is being paid on credit.

There are also many other coverages for every need, in addition to roadside assistance services included in various policies.

Is car insurance only useful in case of accidents?

No, auto insurance includes various coverages in the extensive coverage to protect you against various damages. Among others are damages caused by natural phenomena such as storms, falling trees, airplanes and other objects, as well as intentional acts such as theft or vandalism. It also protects against collision against animals.

Do deductibles and coinsurance apply to auto insurance?

In many of the insurance plans the deductible is used in the coverage of material damage of the vehicle, which causes the premium to decrease as the deductible increases, but the cases in which the insurance coverage will apply decrease. Several companies operate insurance without a deductible.

Coinsurance also usually applies to various coverages. They are percentages previously established that are borne by the insured in the specific coverage mentioned in the policy.

Each person must decide what percentage of the risk they assume before deciding on the insurance plan that interests them.

How to initiate a claim for insurance payment?

Many of the insurers have online claim procedures that facilitate the process. Before hiring insurance it is convenient to verify the time it will take the insurer to pay and how simple or not the process may be.

In other insurers it will be necessary to fill out a questionnaire at one of the branches or through an agent.

In case of controversies with an insurance company, you can always go to the NAIC, in addition to the courts in the USA.


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