Auto insurance in different countries of the world: differences and features
According to some competent authorities, the leader in the US insurance market is car insurance by individuals. In terms of premiums, it is almost four times ahead of homeowners’ insurance. Let us compare car insurance in different countries.
Car insurance in the US
To compare car insurance in the US with one in other countries, let us consider the issue in more detail using the example of the average American married couple. For instance, a family has two cars. Both cars are insured by the same company. The couple pays $ 141 per month for insurance.
In general, the following factors affect the cost of auto insurance:
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- gender and age of the car owner;
- his marital status;
- driving experience;
- the area in which the vehicle will stay overnight;
- insurance limits;
To compare car insurance in the United States with other countries, consider one insured event. The family was driving back home from a vacation when a stone suddenly hit the windshield of the car. As a result, the windshield had to be replaced. The man paid $ 100 out of his pocket since his insurance was with a deductible. This incident did not affect the further cost of insurance.
The difference in approaches
The issue of having a federal system allows you to compare car insurance in different states in more detail. The country does not have a federal system that regulates this industry. Each state is independently engaged in the formation of requirements for car insurance.
However, in this regard, all states can be divided into 2 categories:
- Regardless of who is at fault, the damage caused to you is covered by your insurance (no-fault). This type of insurance is common in 12 states – Florida, New York, Michigan, and others.
- The responsibility lies with the culprit of the accident. (at fault). This is how they work in 38 states, including California and Washington.
Car insurance in Big Apple
The example below will allow you to visually compare car insurance in New York with how things are in other states. The man has a leased car in 2016. The insurance for the car contains 2 drivers – the man himself (31 y.o.) and his father (65 y.o.). The driving experience is 13 and 12 years. The main driver is a man, the second is his father, although, in fact, it is his father’s car.
But, for the insurance company, the man himself looks like a more reliable driver, because he has a better credit history. And, unlike his father, he has no driving penalty points. Insurance for this car costs about $ 2000 per year.
Car insurance in California
The following is a description of the situation in California in order to better compare car insurance in the country. California requires minimum owner liability insurance in the event of an accident. At the same time, this minimum insurance will not cover damage to your car, but only the minimum liability of you as the culprit – liability.
Car insurance in other parts of the world
Now let us compare car insurance in the USA and other countries. In Russia, there is a law according to which insurers must compensate for damage by car repair, and not money. In other words, Russian insurance companies send cars damaged in accidents for repairs at a discount.
Below is an example of an insured event in Japan to compare car insurance in different countries in more detail. For instance, at the time of the collision, the driver’s father or mother was in the passenger seat. The insurance company is not responsible for any harm to their health. The driver will also have to pay for material damage, as well as car repairs, out of his own pocket.
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