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What Is Collision For Auto Insurance Laws?

Auto insurance laws can be confusing and frustrating. It is very important that you stay compliant within the state that you reside not only because it is a law but for you to be sufficiently covered in case an accident happens. An accident is more than an inconvenience; it is costly in many ways. If not covered the way that you should be, you can be in more than just financial trouble, you can be facing criminal charges as well.

There are so many different terms that are thrown at you when you go to apply for insurance. Although most of us know the term collision insurance because in most states it is the very minimum you need to operate a motor vehicle, you may not know what it means. There are also so many other ways to cover yourself. Sifting through the terms and knowing about what they mean for you and your coverage may help you make important decisions about the amount of coverage you feel comfortable with or without carrying.

Collision insurance is an umbrella term which means coverage for physical or property damage. Specifically, most states require that you carry the minimum coverage of liability coverage. Liability coverage is a policy that will cover you if there should be any property damage or bodily injury and you are at deemed at fault. Each state will require a specific dollar amount to be taken out but it can vary per policy and per state requirement. The person taking out the policy can either adhere to the basic coverage needed or choose to increase the amount for a cost that is usually incremental to the additional amount added.

In some jurisdictions, liability is offered as either a split limit or combined limit policy. A combined liability coverage policy means that if there is property damage as well as bodily injury, the two claims are paid out under the same policy. However, if you have a split liability policy, there are both types of claims they will be processed under different policies. The bodily injury will have a maximum payment per accident as well as a maximum payment per person. With the expense that can be incurred in a major accident, this in one way for the car insurance company to limit their responsibility.

In general, if you have collision insurance with the minimum liability coverage, you and any other driver of your car are covered unless the other person resides at the same address. If the other driver resides at the same address, they must be added to the policy to be covered under the insurance. That means that if you have a teen in your home, they must be added specifically to your insurance policy to be covered if a motor vehicle accident occurs.

If you are looking for the lowest cost for the most thorough coverage, input your zip code at the top of the page to get several insurance quotes specific to your state and the laws required within it in just a matter of minutes. Why wait to start saving on your auto insurance needs? Although coverage laws can be confusing and it is hard to know exactly how much coverage you need, it is necessary. The best way to gauge your coverage should be to know the car insurance laws for your state.