The automobile insurance industry is one of the largest and most profitable industries in the United States. Recent estimates put the yearly revenue of the U.S. automobile insurance business at over $282 billion a year and increasing at a steady 2.7 percent annual rate over the past five years. This constitutes about forty-five percent of the property and casualty insurance industry, which includes commercial coverage and homeowners insurance. With such a large portion of the insurance industry going online to save money and cut overhead, it is little wonder that a recent spate of online automobile insurance quote sites have sprung up offering free quotes to all motorists.
The types of coverage you are required to carry will vary depending on your state’s requirements. For example, in most states liability coverage will cover damage to others and bodily injury caused by you. Some states require no fault accidents and only require liability coverage, while others, like New York, have mandatory, legally required no-fault accident coverage. If the state requires no fault coverage, some automobile insurance companies will carry both collision coverage and liability coverage. No fault coverage is usually the most inexpensive way to protect against damages caused in an automobile accident.
Collision coverage, in addition to liability coverage, will pay to repair your vehicle if it is damaged in an accident, even if the other driver is at fault. In many states, the collision portion of your policy will also provide coverage for damage to your own vehicle if you are driving it in an accident. One problem that can occur with this type of coverage is if you financed the vehicle and the lender has repossessed it. Your lender will likely require that you carry liability and no-fault coverage, and may also require that you carry at least a limited amount of collision coverage, since the lender is likely to require you to carry at least a limited amount of collision coverage in order to recoup their loss.
A person should check on their prospective auto insurance company very carefully before purchasing motor vehicle coverage. Liability insurance coverage is required in most states, and many people don’t know enough about liability insurance coverage to purchase it at the right price. People who purchase the wrong liability insurance coverage could be responsible for financial harm because of an accident they were not at fault for causing.
Carrying at least bodily injury coverage is highly recommended, as well as providing medical care coverage. This type of insurance provides coverage for legal expenses that result from an automobile accident. It may also cover your pain and suffering if you are injured in an accident. It is absolutely critical that you shop around for the best price on this type of coverage, so that you are ensured you get the absolute best rates possible.
Many people fail to purchase comprehensive or collision coverage because they believe they won’t need it. Although this coverage will provide some financial relief to the insured if they are in a wreck, it is not necessary. Many people who buy a comprehensive insurance card believing that they won’t need it pay dearly for it in the event of a major accident. Because they didn’t consider the benefits of additional coverage, they end up paying too much for their premiums. In the worst case scenario, these individuals may have to cancel their car.
If you own a classic or older vehicle, you can be covered for collision damage under compulsory insurance coverage. Concussion damage caused by fire and theft are also covered for a compulsory insurance policy. When you choose this coverage, you are not required to have collision or comprehensive insurance on your car, but it is highly recommended. If you do, the cost of your premium will be lower.
There are many other types of compulsory insurance in North Carolina. Bodily Injury and Property Damage are two of the most common. The type of bodily injury that is covered by these policies is generally that which you cause to another individual. Bodily injury liability is not mandatory, but if you choose to carry it, the cost of your premiums will be lower. Property damage liability is designed to cover the cost of repair to your vehicle or the replacement of it in the event of an accident for which you are sued.