As per the State laws all motor vehicles, in order to operate legally through the State, must be insured. All States have defined certain minimum requirements that need to be fulfilled, with the amount of coverage varying from State to State. However, the specific requirement of each individual might vary and there may be a need of additional coverage to protect the assets in the present as well as in future.

All States have mandatory requirements that need to be undertaken. The States not having these laws have financial responsibility laws that require a person to furnish proof of the ability to pay damages in case of an accident. The minimum amount in each State varies but the numbers depicting these amounts must be understood. If the figure reads as 20/50/30 where all amounts are in thousand dollars, the first figure denotes the maximum amount for the damages if a single person suffers from bodily injury in an accident. The second figure means the maximum amount for all the injuries in an accident and the third figure denotes the maximum amount that would be liable in case of property damage due to an accident.

The other optional insurance coverage that can be obtained are as follows:

Uninsured motorist coverage: if one suffers from bodily injury or property damage by an uninsured driver, the coverage would pay for it.

Underinsured motorist coverage: this coverage would provide relief if the bodily injury or damage to property is suffered by an insured driver, but whose insurance is lesser than the coverage under this category.

Personal injury protection (PIP): this coverage ensures protection by way of covering the medical and hospital costs incurred due to an accident, irrespective of who is involved in the accident. It also covers wages that are lost due to the accident and such similar losses.

Collision coverage: if your vehicle has been damaged due to a collision with another vehicle or object, it can be covered under this policy.

Comprehensive coverage: if the vehicle suffers damage not due to collision but other reasons such as vandalism, flooding etc. then it can be covered under the comprehensive coverage policy.

These are the optional coverage schemes that can be undertaken by the vehicle owners in order to protect themselves from paying hefty damages in the absence of a comprehensive insurance policy. Similar to cars or motorized vehicles, even motorcycles require certain minimum coverage as per the State laws. However the motorcycles have been exempted from the no-fault coverage as this would place a high liability on the motorcyclist which could even exceed the cost of the motorcycle. As in the case of cars, the motorcyclists must mention which all areas are to be covered as simply stating a full coverage is ambiguous and often leads to brokers putting only the minimum required by the state. Comprehensive and collision coverage can be obtained for a motorcycle which covers him against damages in case of collision. Therefore one should always comprehend the various situations and then opt for the coverage that is most suitable both as a car owner and as a motorcyclist. The list for the coverage area for a motorcycle is not exhaustive and needs to be completely understood before opting for the additional coverage.