Everything you need to know about auto insurance in the United States
The ABCs of auto insurance in the United State
The car insurance covers damage caused to your vehicle and protects you financially if you are responsible for injuries or damages to someone else. It can also pay medical bills if you or your passengers are injured in an accident or if you are hit by an uninsured or underinsured driver. Your policy protects you up to certain limits agreed between you and your insurer. And there is something for all tastes and budgets.
Auto insurance for everyone?
Auto insurance is required in all states except New Hampshire (however this state does require financial liability if you cause an accident, so it’s best to be properly insured). Driving without insurance can result in a fine, license suspension, or even jail time. Speaking of prison, don’t miss reading our article on the subject
To assure? The permit first!
Warning! Driving only with the license and the international license beyond 3 months (if you are residents) will lead you straight to court in the event of control since you will be considered “without a license”. You must therefore retake your license in the state in which you reside. Fortunately, there is sometimes an equivalence with your license, as in Florida, and it is then simply necessary to pass an “administrative visit” in a specialized organization ( DMV ). Other states, like California, require you to retake a real license …
It is important to know that no auto dealer American will not let you leave with a car without verifying that you have a US license and insurance.
Driver history? Not know
Experienced or novice drivers arriving in the United States will be accommodated in the same boat. The US insurance applies indeed young drivers rates expatriates because they consider that you have no history in the country.
Auto insurance coverages
Auto insurance covers a variety of accidents and events that can occur on or even off the road. While coverage may vary from state to state, here are the standard coverage for most auto insurance policies:
Automobile liability coverage is required in all 49 US states. If you are found guilty of a car accident, liability coverage can cover:
- damage to other vehicles,
- damage to objects,
- injuries to other drivers and their passengers
- and lawsuits if you are sued because of an accident.
Collision coverage covers your vehicle if it rolls over or collides with another vehicle or object, including trees or fences.
Medical Payments and Personal Injury Protection (PIP)
Medical payment coverage is available in most states, while personal injury protection is broader coverage that is only available in states that require it to be offered. Both cover medical costs if you or your passengers are injured in a car accident (regardless of fault).
Comprehensive automobile insurance
Comprehensive coverage protects against damage to your car caused by events beyond your control, including theft, damage to the windshield and windows, vandalism, falling trees … This insurance is very often required if you have a leased car
See our article on leasing in the United States.
The case of uninsured or underinsured motorists
The UIM protection can handle injuries to you and your passengers when you are hit by an uninsured driver or inadequately covered. As for MPD protection, it can pay to repair or replace your vehicle if it is damaged in an accident with an uninsured or underinsured driver.
The price of auto insurance in the United States
Every auto insurance policy in the United States is unique to the driver and the price varies greatly depending on a number of criteria, such as:
- Vehicle details, such as make, model, and year.
- Driving habits, for example, the number of km, because the higher it is, the higher your rate can be.
- A deductible amount, as a higher deductible can lower your rate.
- Vehicle location, as more populated areas, can increase your risk of accidents, vandalism or theft.
- Your driving history in the United States, if you have one.