Auto Insurance in USA
– Insurance in USA for foreigners

Auto Insurance in USA

Insurance in USA for foreigners

All that is written on this insurance blog in USA is just the point of view of the author. This view is based on general knowledge drawn from the textbooks of the Chartered Insurance Professional course at the Institute of Insurance in USA. This material in no way reflects the philosophy and policies of the company in which I work. I am not responsible for any losses, expenses or any damages incurred as a result of reading and interpreting the information in these sections.”

Car insurance the general in USA

Studying this area of insurance, for the first time during my stay in USA, it seemed to me that I was not in USA. Because this area of insurance is not only very different between the provinces (and not only between the “provinces” and the province of Quebec, as usual). But legislative principles defining auto insurance are also different. That the situation does not clarify at all. I happened to work very little with insurance claims related to cars.

Because in USA, compulsory auto insurance is governed by the provincial non-profit Crown Corporation aka Insurance Corporation of USA. Therefore, this sector is not very interesting for private insurance companies. A little more about this will be next.

Car insurance USA for foreigners?

Car insurance USA for foreigners in the United States is mandatory in almost all states. The very concept of "compulsory insurance" was born in America at the dawn of the twentieth century and has evolved over the years.

Today, car insurance for foreigners is governed by the laws of each state individually. Only in New Hampshire, Tennessee and Wisconsin is it optional. Differences in the laws of the remaining states are reduced mainly to the types of compulsory insurance adopted there, as well as to the minimum amount of insurance coverage.

In the vast majority of states, it is impossible to buy a car without car insurance - you simply will not sell it.

If you did not bother about it in advance and came to buy a car, then you will be offered to conclude an agreement and get an insurance policy from the nearest insurance company, which usually swarm around large auto shops.

Any insurance benefit / and it’s better not to go out on the street if you don’t know the basics of such instructions / starts roughly the same way: understanding car insurance is an important part of your training as a driver. Insurance is "inevitable, but necessary evil" / as taxes that must be paid, otherwise you can go to jail / - and this should be taken for granted. Every American understands that car insurance can ultimately protect against financial collapse and even prison, and regularly pays insurance premiums.

However, it is better to study the market and choose the best insurance in advance. To do this, you need to know at least the main points that make up the insurance policy.

Car insurance in the US includes 6 basic types.

The first two types are the most important, and therefore obligatory for all almost everywhere in America.

First - This is liability insurance for the owner of the policy to cause injury to another person or persons and property damage as a result of an accident.

Second - State determines the minimum insurance coverage for accidents. In the United States, three numbers are used for this, which in tens of thousands of dollars show these limits.

So, in California, the following parameters are adopted: 15/30/5. This means that the car owner is obliged to have a policy with minimal liability insurance in case of bodily harm and material damage at the rate of 15 thousand dollars if one person was injured, 30 thousand dollars if more than one person was injured and 5 thousand dollars to cover material damage . In the state of New York and in the District of Columbia, where the American capital is located, the parameters are the same - 25/50/10, and in Alaska - 50/100/25.

The third type of insurance is personal injury protection.

The third type of insurance is personal injury protection.

He covers medical expenses and financial losses as a result of the temporary disability of the policyholder himself and the passengers who were in his car at the time of the accident, regardless of who the perpetrator was. Such a policy is important if a person who has got into an accident has not very high coverage for his health insurance or does not have it at all. If medical insurance is expensive and gives high coverage, then the third type of car insurance can be abandoned or taken to a minimum. In a number of states, including New Jersey, California and the capital, Washington, it is not mandatory.

The following two types of insurance are also not required by US law.

The fourth type is collision insurance.

When material damage is caused to the policyholder’s vehicle as a result of a collision with another machine or a fixed object - a pole, a hydrant, a tree, etc.

The fifth is “comprehensive insurance” covering damage caused by “divine providence” - floods, fire, hurricane, earthquakes.

As well as in cases of vandalism and car theft, that is, when it is impossible to find the perpetrators. These two types of insurance involve the payment of repair costs at an acceptable market price minus the amount that the policyholder must pay in accordance with the contract with the insurance company. This amount is called "deductible" and it ranges from 100 dollars to 1 thousand dollars. On average in the country, this deductible amount is $ 500. The pattern here is this: the more it is, the lower the cost of the policy.