The Main Things You Need to Know About Car Insurance in the USA
Having a car in the USA is not a luxury, but a necessity, especially in small cities where public transport is much less developed than in megacities. However, at the same time with the car, it is necessary to purchase a car insurance policy. What insurance to take, and what does its cost depend on? We prepared the answers.
The difference in the USA Insurance Approaches
The issue of car insurance in the United States is becoming more complicated due to the fact that the country does not have a federal system that regulates this industry. Each state independently engages in the formation of requirements for car insurance. Here is more information about car insurance for single mothers.
However, in this regard, all states can be divided into 2 categories:
No matter who is to blame, the damage caused to you is covered by your insurance (no fault). This type of insurance is common in 12 states - in Florida, New York, Michigan and others.
The responsibility lies with the culprit of the accident (in English it is called at fault). This is how they work in 38 states, including California and Washington.
Car insurance can be bought in person or online at an insurance company, from an insurance agent or broker (the latter must have a license). Insurance is issued for a period of 6 or 12 months. It can be paid on a monthly basis, or can be a single amount, for which they often give a discount. With annual insurance, the price is guaranteed not to rise, with 6-month policies they can raise the price every six months.
Often, insurance companies offer very favorable conditions for new customers. However, in good insurance companies, there are also discounts that are offered to regular customers with long-term cooperation.
What Do You Need for Car Insurance
When making insurance, you will be asked to provide the following documents and data:
American driver's license (in the absence of it - those rights that are). If you do not have a local driver's license, this does not mean that you will not be able to insure. Most likely, insurance will be a little more expensive than if you were with local rights. The main thing - do not forget to inform your insurance broker about their receipt;
- VIN (Vehicle Identification Number);
- Brand, model and year of manufacture;
- Zip code of the place where your vehicle will stay overnight.
Each insurance company has its own rating of safe areas. Accordingly, the more incidents happen where you live, the more expensive your insurance will be.
There is also another item that must be indicated on insurance - the estimated number of miles you plan to drive per year. And if it suddenly turns out that you are greatly underestimating the data, then you may be required to claim compensation for the last 3 years. In general, it should be borne in mind that any fraud with car insurance is a federal crime and it is punishable accordingly.