To know what is motor insurance is the obligation of every US citizen. This insurance type is the insurance purchased for one’s road vehicle irrespective of its type (car, truck, etc.) The aim of this insurance type is to provide the third parties with financial assistance when they become the suffers as a result of a car accident the reason of which was you.
In case, you need to dig deeper in the matter of what is motor insurance, let us bring you through information on the issue. First of all motor insurance is obligatory for the greatest part of the United States with several States as exceptions. The “financial responsibility” laws in States where car insurance is not compulsory, however, make you responsible for covering the damages once you are to blame for the collision. Meanwhile, the citizens of States where motor insurance is obligatory are due to representing the proof of their motor insurance when registering a car. Afterwards, the document is to be constantly carried with you.
To understand what is motor insurance you should also learn about the premiums one is due to pay monthly. These premiums are considerably higher for younger people (under 27). Drivers living in inner cities are charged more, too. The reason is that overcrowded cities, as a rule, have more hazardous driving conditions whilst the car theft is quite endemic for such cities. However, there also other factors influencing the price for a motor insurance policy:
1. Car make and type
2. Car age and value
3. The driver’s age, gender and occupation
4. The car usage (pleasure or business)
5. Driver’s accident record
6. The place the car is to be stored in (locked garage or outdoors)
7. Medium quantity of miles the driver does annually
Now, when you have learned what is motor insurance, let us pass on the types of cover.
1. Liability Insurance
2. No-Fault Insurance
3. PIP Medical Expenses Insurance
4. Uninsured Motorist Insurance
5. Catastrophic Medical Expenses Insurance
6. Collision Insurance
7. Comprehensive Insurance
8. Miscellaneous Extra Insurance
Liability Coverage Via Basic Motor Insurance Type
To have a better idea of what is motor insurance, let us get informed about the liability insurance (basic car insurance type). The latter is schemed to provide the suffered with enough protection via finance to cover all their expenses the car accident created by you arose including as hospital bills they got for the treatment so car repair bills. This is a basic insurance type which is perhaps the only coverage option that is compulsory for nearly all states. The property damage liability implies you are due to pay for another person’s damaged property whilst the bodily injury liability states that you are due to pay for the costs necessary for the treatment of another person’s bodily injuries. This insurance type, however, covers neither for the damage of your own car, nor for the treatment of your own bodily injury as the accident was caused particularly by you.
We guess now you have a thorough concept of what is motor insurance.