The difference in approaches
Due to the fact that there is no federal system regulating auto insurance in the USA, this issue is difficult for many people. Every state is developing its own car insurance requirements.
You can buy car insurance in person or via the Internet from an insurance company; from an insurance agent or broker (the broker must have a license). Insurance is valid for half a year or for a year. It can be paid monthly, or it can be paid in a full amount. You often get a discount when you pay the whole sum at once. With annual insurance, it is guaranteed that the price will not rise. Choosing the 6-month policy, the price can raise each time after its ending.
The composition parts of car insurance
An insurance policy is a set of different types of coverage and every state is having its own insurance policy. There are many of them in the field of auto insurance. Consider two of them:
- Liability Coverage – compulsory liability. This is the most significant type of coverages, especially at states, where all responsibility falls on the culprit of the accident.
It should be borne in mind that in case when after an accident with big car damages, insurance of the person, responsible for this accident, does not cover all costs, the lacking amount will be claimed from the culprit at the court. On account of its coverage, all bank accounts of the family, shares, if any, the property owned, as well as the amount of one fourth of the money, earned by all members of the family in the next 10 years, are taken.
- Personal Injury Protection – it is compulsory in some states, like Florida and New York, and optional, for example, in California.
What is needed for auto insurance?
You need to provide the following data and documents:
- Driver’s license obtained in the USA (in the case of its absence – the license that is present). Do not forget to report your insurance broker about its receipt in case you didn’t have it at the moment of car insuring;
- Vehicle Identification Number;
- Make, year of release and model of the car;
- The zip code of the place, where the car will be left for night. Every insurance company is having its own rating of safe parking areas.
- There is one more item, which must be specified for insurance company- the approximate number of miles you plan to drive in a year. This data is provided in the form of a non-formal letter. Some insurance companies each year ask for documents that reflect the real state of things. If it suddenly turns out that you greatly underestimate the data, you may need to compensate for the last 3 years. In general, it is worth bearing in mind that any car insurance fraud is a crime and you will be punished for it.