Uninsured Drivers Car Insurance Guide
In the United States, car insurance is practically not regulated at the federal level, but is left to the state authorities and insurance companies. Therefore, each state has its own characteristics of pricing, coverage and other conditions.
In the American market, there are two main auto insurance systems for motorists. In most states, an accident insurance company pays the accident victim. But in about a dozen states, the “No Fault” system operates, in which the victim receives compensation from his insurance company, regardless of the culprit. In some states, you can choose between these two types.
Most states require at least civil liability insurance, that is, damage that the driver may cause to other road users or surrounding property. In some states, you can refuse insurance, but usually you still need to confirm your solvency in the event of an accident. For example, in Virginia, uninsured car dealers pay a state fee of $500 a year to state authorities, and a special certificate must be made in Mississippi for a certain amount.
The standard liability insurance formula is written in three numbers. In the metropolitan area of Columbia, the minimum insurance requirements are: 25/50/10.
The first is the amount of the maximum compensation for physical or moral damage to one victim in thousands of dollars (that is, up to 25 thousand dollars), the second is the maximum amount of payments for all victims in one accident, the third is compensation for property damage. These limits vary significantly from state to state. For example, in California it is 15/30/5, and in Maine – 50/100/25.
For lack of insurance where it is obligatory, punishments are envisaged from large fines to the seizure of rights and even a prison term. In North Carolina, permanent citizenship numbers will not be issued without a motor vehicle policy. In Arizona, they suggested exploring the possibility that insurance companies would issue license numbers to car owners and expire with the policy. So it would be easier to identify those who shy away from acquiring insurance. Typically, the car owner needs to have proof of insurance on paper or in the form of a plastic card, but several states have already introduced laws on electronic confirmation of insurance when making an accident.
However, most car owners are not limited to the minimums of citizens. Optional but very common is insurance of possible damage to one’s own health or property, including in the event that the culprit of the accident does not have a policy or its coverage is insufficient. Most Americans buy policies, but the risk of running into a driver without insurance is not so small. According to the Insurance Information Institute, on average, about one in eight drivers in the United States does not even have minimum insurance. In the USA, there is no free medical care, and everything connected with calling an ambulance is measured in sums with three or four zeros at a minimum. The price of insurance may depend on a number of factors, including those usually used in the calculation of age, gender or length of service, as well as more exotic ones, including a credit rating and a car owner’s history. The average cost of car insurance varies greatly from state to state and ranges from 1 to 2.5 thousand dollars a year.
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