Do you plan to move to the USA or travel and rent a car? You need to learn everything about the system car insurance.
You must have heard that there are two main types of car insurance on the American market. It is a well-known fact that in many US states, the victim of the car accident gets money from the insurance company. But not every car driver knows about the system “no-fault.” What does it mean? This type of insurance is a good option to choose because you will get insurance in any case. Even if you are the driver who has become the reason for the accident you will be given compensation from the insurance company. Perhaps, now you’d like to ask “Can I get this type of insurance?” In some regions, you can choose among the above-mentioned types of insurance but not everywhere. In most states, first, you need to get general car insurance if you want to drive a car.
How Do Car Insurance Requirements Differ around the US?
You should understand that the rules for car insurance differ from state to state. That’s why it’s a must to check the car insurance regulations in a certain state where you live or stay. In some states, you have the right to deny buying the car insurance but in any case, you need to prove that you can pay for the consequences of the accident if it takes place and you’ll be the guilty party. If you plan to drive the car in Virginia, you need to keep in mind that you’ll have to pay $500 annually if you don’t insure your auto.
Is there any general formula for the calculation of how much it will cost you to insure your car? There is a liability formula that looks like this: up to $25000 is the maximum possible compensation for the damage in case of accident to the one person who has become the victim of the accident.
In most states, first, you need to get general car insurance if you want to drive a car. But for a liability policy, here’s what is not covered under liability car insurance.
Up to $50000 is the figure that means the maximum payment to all the victims of the car accident. And the third figure you may see in the standard liability formula is $10000 – the amount you’ll have to pay if you damage someone’s vehicle. If you are in Maine or California, you’ll see that there are different limits for the amount you need to pay in case of an accident.
Is There Any Punishment for the Absence of Car Insurance?
If you are in the US state where every car driver must have insurance then be ready to face the consequences of not having the one. What will happen if you are guilty in the car accident and you don’t have car insurance? The punishment varies from state to state. In some, it’s just a fine while in others the laws are stricter. You may lose your driver’s license. So, you’d better insure the car and avoid the punishment. Remember that you need to carry the insurance document with you always. Today, it can be not only the paper document but also the plastic card. If you drive often, you’re recommended to get not only car insurance but also medical insurance. So, check the cost of the insurance in the state where you are now or where you plan to drive and don’t postpone to insure the car.
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