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Everything you need to know about car insurance in the United States

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Car Accident In USA

You have the car, you have the license, all you have left is the car insurance. If indeed, the insurance of your vehicle is compulsory in the vast majority of the United States, the insurance companies are numerous and offer protections, conditions and prices which vary enormously. How to see clearly? Before choosing the right protection, be sure to read the following.

The B A-BA of car insurance in the United States

Auto insurance, quesaco?

Car insurance covers damage to your vehicle and protects you financially if you are responsible for someone else’s injury or damage. 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.

Car 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. 

To assure? License first!

Attention! Driving only with the French license and the international license beyond 3 months (if you are a resident) will lead you straight to court in the event of an inspection since you will be considered as “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 you simply have to pass an “administrative visit” to a specialized organization ( DMV ). Other states, such as California, require you to retake a real license…
It is important to know that no car dealershipAmerican will not let you drive away with a car without verifying that you have an American license and insurance.

Driver history? Not know

Seasoned drivers or beginners arriving in the United States will be housed in the same boat. American insurance companies apply young driver rates to expatriates because they consider that you have no history in the country.

Auto insurance coverage

Auto insurance covers a variety of accidents and events that can occur on or even off the road. Although coverages may vary from state to state, here are the standard coverages of most car insurance policies:

The responsibility

Automobile liability coverage is required in all 49 US states. If you are found guilty in a car accident, liability coverage can cover:

  • damage to other vehicles,
  • damage to objects,
  • injury to other drivers and their passengers
  • and prosecution if you are sued due to an accident.

The collision

Collision coverage covers your vehicle if it overturns or collides with another vehicle or object, including trees or fences.

Medical payments and bodily injury protection (PIP)

Coverage for medical payments is offered in most states, while protection against bodily injury is a broader coverage that is only available in states that require it to be offered. Both cover medical expenses if you or your passengers are injured in a car accident (regardless of fault).

Full car insurance (comprehensive)

Comprehensive coverage protects against damage to your car caused by events beyond your control, including theft, damage to windshield and glass, 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

UIM protection can cover injuries to you and your passengers when you are hit by an uninsured or insufficiently covered driver. 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 car insurance in the United States

Each car 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.
  • Deductible amount, as a higher deductible may reduce your rate.
  • Location of the vehicle, as more populated areas, may increase your risk of accident, vandalism or even theft.
  • Your U.S. driving history, if you have one.
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