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Auto Insurance in the US

 


The way auto insurance works in the US is that a customer agrees to pay a monthly premium to an auto insurance company in exchange for accident coverage and payouts from the auto insurance company in case of accident.

 

Deductibles

 

Deductibles work like this:  the more you are willing to pay yourself should you find yourself in an accident, then the less you have to pay out month to month in your premiums.  You can set deductibles on collision and comprehensive coverage.  Collision is what it sounds like.  You get in an accident and that’s under your collision coverage.  Comprehensive includes theft, fire, flood,

 

Minimum Required Coverage Levels

 

Almost all states (the exception being Wisconsin and New Hampshire) require drivers to carry liability insurance.  Minimum required coverage levels are usually specified for the following:

 

  • Bodily Injury for one person in an accident
  • Bodily Injury for all people in an accident
  • Property Damage
  • Uninsured Motorist

 

For example, in Louisiana, drivers must carry liability insurance of 10K for bodily injury to one person, 20K for bodily injury for all people, 10K for property damage but are not required to carry liability insurance for uninsured motorists. 

 

 

 

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