How to buy car insurance in USA?

How to buy car insurance in USA? There are many ways to get car insurance in the united states but I’m sharing a comprehensive guide on it. There are only 3 steps in total - which will be adequate for you to gather useful information about auto insurance in the United States of America.

There are high chances that the following information will enhance your knowledge. If you read it fully then you’ll probably be planning to contact an insurance provider by the end of the guide or else be enlightened enough to speak about it. Let’s get into it.

Step One: Evaluate how much coverage do you need:

Although, the first step of buying car insurance include self-assessment, but in the United States automotive insurance is a compulsory act in various state. This leaves no choice for self-assessment. Besides, in other states where it is not mandatory, a certain fee is paid to the government monthly/ annually or otherwise. Let’s look at it in detail. :bookmark_tabs:

1. How much car insurance is compulsory in the USA?

In the United States “liability coverage” is compulsory for car drivers; which includes bodily injury of the third party and Property damages. When individuals being citizens of the united states – take up compulsory car insurance, they pay for the bodily and property damage done to the other party on road by their car through respective car insurance company.

The limit of claim settlement is 25/50/20, which means in case of an accident 25000 dollars per person will be paid to the third party – summing up 50,000 dollars collectively. Besides, $20,000 will be paid to the property damage done to the third party’s vehicle. All the other charges that come out of this range will not be paid by compulsory insurance, then for that, you have to take car insurance extensions voluntarily.

2. Which states have compulsory car insurance in the United States of America?

There are 49 states in the United States in which car insurance is compulsory. They are as follows;

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, District of Columbia, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Lowa, Kansas, Kentucky, Louisiana, Maine, Mayland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Washington, West Virginia, Wisconsin, Wyoming

3. How much Liability is covered in each state in the US?

Below are the compulsory car insurance coverages for all the cities of united states —which can further be confirmed after talking to a broker or insurance provider.

States of USA Coverage Requirements Details
Alabama 25/50/25 In Alabama, $25000 for one-person bodily injury is be covered. The total amount paid is up to $50,000 in total. Which means only 2 injured persons are covered in the compulsory car insurance. $25000 are covered for Property damages done to the third party’s car or other things you hit and damage due to the accident.
Alaska 50/100/25 In Alaska, $50,000 are covered for one-person bodily injury up to $100,000 in total. Which means 2 persons from the third party injured in an accident will be covered till the given amount. Whereas, $25,000 are covered for Property damages done to the third party’s car or other things you hit and damage due to the accident. This is compulsory coverage limit.
Arizona 25/50/15 In Arizona, as per the compulsory insurance requirements An individual will be protected against bodily injury (death and medical payments) till the limit of $25,000. Two persons for $50,000 – which is the maximum requirement. For third-party property damage $15,000 is the limit.
Arkansas 25/50/15 In Arkansas, a single person will be covered for $25,000 against bodily injury. Two persons for $50,000 collectively with the ratio of $25000: 25,000. Whereas, Property damages for the other car will be till $15,000.
California 15/30/5 In California, an individual will be protected against the bodily injury for $15,000 and two for $50,000. While $5000 are mandatory for compulsory car insurance with regards to third party property damages.
Colorado 25/50/15 In Colorado, one person is protected against $25,000 are per the basic requirements of the united states that so till the extent of $50,000, covering 2 persons in total. This is for bodily injury, death or medical bill’s case. Whereas, Property damages of the other vehicle are covered till $15,000
Connecticut 25/50/25 In Connecticut, according to the state’s requirement one person is covered for $25,000 for bodily injury till the extent of $50,000 in total. It covers two persons as per the given limit. Whereas, third party property damages are covered for $25,000.
District of Columbia 10/25/5 In District of Colombia, $10,000 for one-person bodily injury is covered. The total amount paid for the claim settlement is up to $25,000 in total. Which means 2 injured persons are totally covered in addition to $5000 extra (In case of a third injured person) in the compulsory car insurance. $5000 are covered for Property damages done to the third party’s car or other things you hit and damage due to the accident.
Delaware 15/30/5 In Delaware, one person is covered for $15000 and two persons are covered for $30,000 collectively ($15,000 each). Whereas, third party property damage is covered till the extent of $5000.
Florida 0/0/10 In Florida, property damages are covered with $10,000 Personal injury Protection (PIP) Coverage. (Which is compulsory) Other than that car insurance is necessary to cover property damages up to $10,000.
Georgia 25/50/25 In Georgia, $25,000 are covered for one-person bodily injury, summing up $50,000 in total. No extensive amount will be paid by the compulsory car insurance. Whereas $25,000 are covered for property damages such as third party’s car or anything that you damage in the accident.
Hawaii 20/40/10 In Hawaii, $20,000 are covered for bodily injury of a single person, calculating $40,000 in total. Which means only two persons are wholly covered in the compulsory car insurance. $10,000 are covered for the other car’s property damage or any other damage done to the item during accident.
Idaho 25/50/15 In Idaho, $25000 are covered for the bodily injury and medical bills of the third party - $50,000 for two people. Whereas for Property damage not more than $15000 will be paid to the other party.
Illinois 20/50/15 In Illinois, $20,000 are paid for one-person bodily injury or for medical bills. This policy will cover 2 people to a full extent till $20,000 and another person till the limit of $5000 summing up $50,000 in total. Whereas, $15,000 are covered for property damage to the third party’s car.
Indiana 25/50/25 In Indiana, one person will be covered for $25,000 and two persons will be covered for $50,000 — The policy will not cover more than two people till the given extent. As far as property damages are concerned $25,000 will be paid to the other party.
Lowa 20/40/15 In Lowa, one person will be covered for $20,000 for bodily injury and two persons will be covered for $40,000 totally – No more than two persons will be considered for compulsory car insurance. Other than that, $15,000 are covered for Property damage.
Kansas 25/50/10 In Kansas, $25,000 are paid for one person in compulsory car insurance, whereas $50,000 for two persons in total. Which means only two people are wholly covered to the given extent and $10,000 are covered for property damage to the other party’s car.
Kentucky 25/50/25 In Kentucky, $25,000 are covered for one person in case of bodily injury and $25,000+ $25,0000= $50,000 total for two persons. $25,000 are paid for third party’s vehicle damage
Louisiana 15/30/25 In Louisiana, $15,0000 are paid for one person each for bodily injury in case of accident, whereas $30,000 are paid in total for two persons injured in an accident. $25,000 are paid for property damage to the third party.
Maine 50/100/25 In Maine, $50,000 are paid for a single person, accumulating $100,000 for two persons in total. Whereas, $25,000 are paid for property damage. This amount is paid to the third party and not to the insured for its car damage.
Maryland 30/60/15 In Maryland, $30,00 are paid for one person’s bodily injury and $60,000 for two persons in total ($30,000 each). Whereas $15,000 are paid for property damage done to the third party’s car.
Massachusetts 20/40/5 In Massachusetts, instead of buying car insurance, citizen can also invest $10,000 cash in stocks, bonds with the government treasure and claim can be settled by the receipt given in return of the deposit. Another option is that citizen can buy motor vehicle liability bond up to the state’s required limit., I.e 20/40/5
Michigan 20/40/10 In Michigan, $20,000 for bodily injury is covered for each individual by car insurance company as per compulsory insurance limits. Only two people are protected by $40,000 ($20,000 each) in it. While on the other hand $10,000 are covered for property damage done to the other party’s vehicle.
Minnesota 30/60/10 In Minnesota, one person is covered for $30,000 related to bodily injury coverage and two persons are covered for $60,000 collectively. This is the maximum limit of compulsory car insurance in Minnesota state. While For property damage $10,000 are maximum coverage limit.
Mississippi 25/50/25 In Mississippi, A coverage of $25,000 each person is compulsory for bodily injury – requiring 2 persons for $50,000. While $25,000 coverage is mandatory for property damage done to the third person’s vehicle.
Missouri 25/50/10 In Missouri, the car insurance compulsory liability requirement asks for $25,000 for each person’s bodily injury as a mandatory coverage, Whereas, $50,000 for two persons in total. This is the maximum liability requirement for the Missouri state. While on the other hand, another $10,000 coverage is compulsory for property damage done to the third party.
Montana 25/50/10 In Montana, 25,000 dollars are mandatory as compulsory car insurance for each individual bodily injury, summing up two persons for 50,000 dollars collectively. Extra $10,000 are compulsory for property damage coverage done to the third party.
Nebraska 25/50/25 In Nebraska, two persons are covered for $50,000 collectively where a single person is protected by $25,000. The property damages are covered for $25,000 for third party’s vehicle damage or anything that is damaged as a result of the accident.
Nevada 25/50/20 In Nevada, $25,000 coverage is compulsory to take for third party’s bodily injury and medical payment with regard to one person. Whereas, $50,000 coverage for bodily injury is compulsory for 2 people in total. This is the state’s limit and for any additional coverage you can take car insurance extensions voluntarily. $20,000 for property damages are also mandatory for third party vehicle damage.
New jersey 0/0/5 In New Jersey, buying coverage for bodily injury is not compulsory, instead a $15,000 Personal injury protection (PIP) coverage is mandatory to purchase. On the other hand, $5000 coverage for property damage done to the other person’s car is compulsory to take.
New Mexico 25/50/10 In New Mexico, One person is covered for $25,000 with regards to bodily injury and two persons are covered for $50,000 ($25,000 each). New mexico’s state requires two persons compulsory car insurance as maximum requirement. Whereas $10,000 are required for property damages coverage to the third party.
New York 25/50/10 In New York, Maximum coverage limit for bodily injury is $25,000 each person and $50,000 for two persons in total. Maximum Property damages cover to the third-party vehicle is required for $10,000.
North Carolina 30/60/25 In North Carolina, One person is covered for $30,000 for bodily injury as per the state’s requirement and two persons for $60,000 are covered collectively. Compulsory car insurance requires property damage protection for the third party in $25,000.
North Dakota 25/50/25 In North Dakota, The compulsory car insurance for bodily injury requirement is $25,000 each person accumulating $50,000 in total. Only two persons are protected under the state’s requirement. Any exceeding amount will held the first person liable to pay for the damages. Other than that $25,000 are also compulsory for property damages done to the third party’s vehicle.
Ohio 25/50/25 In Ohio, through compulsory car insurance a single person is protected by $20,000 in accordance with bodily injury concerns and three persons are covered for $50,000 with the ratio of 25,000: 25,000: 5000. All the additional damages are paid by the buyer’s pocket otherwise they may be sued. Whereas $25,000 is a compulsory coverage for third-party property damages.
Oklahoma 25/50/25 In Oklahoma, A single person is required to be protected by $25,000 for bodily injury and two persons for $50,000 ($25,000 each). Also, A cover for third-party property damages is also compulsory to have taken.
Oregon 25/50/20 In Oregon, An individual from the third party is covered for $20,000 with regards to bodily injury accumulating $50,000 in total. Contrary A sum of $20,000 is also necessary to pay for third-party property damages.
Pennsylvania 15/30/5 In Pennsylvania, one person is protected by $15,000 and two for $30,000 collectively. Whereas, A small coverage of $5000 for third party property damage is also included in the compulsory car insurance requirement.
Rhode Island 25/50/25 In Rhode Island, The maximum requirement for bodily injury of one is $25,000 and $50,000 for two persons —sealing the state’s requirement. Also $25,000 for third-party property damages and other damaged things as a result of the accident.
South Carolina 25/50/25 In South Carolina, According to the state’s requirement one person is covered for $25,000 and two persons are covered for 50,000 with regards to bodily injury. Anything extra is not payable by the compulsory limit coverage. Also a third-party property damages coverage of $20,000 is necessary to have purchased.
South Dakota 25/50/25 In South Dakota, the same practices as South Carolina are evolved. $25,000 for one-person bodily injury and two persons for $50,000 collectively. Also a third-party property damages coverage of $20,000 is also compulsory for automotive car insurance.
Tennessee 25/50/10 In Tennessee, one person is protected with bodily injury to the extent of $25,000, adding up to $50,000 for two persons in total. Also $10,000 coverage is compulsory for third-party property damages coverage.
Texas 30/60/25 In Texas, the maximum compulsory insurance for bodily injury is $30,000 for one person and $60,000 in total. $25,000 for property damages to the third party. Whereas, People of Texas have another option available. A safety bound can be purchased of $50,000 or cash resuming same amount can be deposited with the comptroller or state’s judge.
Utah 25/65/10 In Utah, the compulsory coverage is $25,000 for one person with regards to bodily injury and 3 persons are covered with the ratio of $25,000: $25,000: $15000 summing up $65,000 in total. Whereas, for third-party property damages $15,000 are mandatory.
Vermont 25/50/10 In Vermont, a single person is covered for $25,000 and two persons are covered for $50,000 with regards to bodily injury. As far as property damages to the third party are concerned $10,000 has to be paid in case of claim settlement
Washington 25/50/10 In Washington, Compulsory coverage limit for bodily injury is $25,000 for one person and $50,000 for two persons. Whereas $10,000 is the limit of third-party property damages.
West Virginia 20/40/10 In West Virginia, The Mandatory car insurance coverage limit is $20,000 for one person and $40,000 for two persons in total. Whereas, $10,000 are fixed for property damages coverages to the third party.
Wisconsin 25/50/10 In Wisconsin, one person is covered til the limit of $25,000 each and two persons for $50,000 overall with regards to bodily injury. Whereas, $10,000 is a compulsory coverage limit for third-party property damages.
Wyoming 25/50/20 In Wyoming, an individual is protected by $25,000 for bodily injury and two persons are protected by $50,000. Whereas, the maximum limit for compulsory car insurance with regards to third party property damages is till $20,000.

Summary of step no 1 :scroll:
The first step to consider while buying car insurance in the United States is evaluating “how much car insurance is compulsory by the state?” —After the contemplation of the relative fact, people can determine if they’d like to process with the state’s requirement only or get higher car insurance coverage along with it. Coverage can also be increased, if the vehicle holder wants it that way.

Step Two: Select your Insurance cover:

After reviewing the necessary coverage limit you then have to go for the next step, which is about “Selection of optimal coverage”. There is a great variety of car insurance covers that you can enjoy the absolute benefit along with the compulsory coverages. Let’s discuss all one by one

How to buy car insurance in USA

1. Liability Coverage (Third-party Indemnity cover):

Liability coverages are limited to any loss or damages that are done to the third party’s car. The covers pay for the insured’s personal responsibilities. In the United States these covers are mandatory for vehicle owners - but that to a mentioned requirement (See the second step). Even though it is compulsory, the coverage limit can be increased through insurance extensions.

Two options help you growing the coverage limit.

  • Combined single limit:

In this option, Vehicle holder can get protection against both Bodily injury (Death & Medical claims) and Property damages all in one single cover. A common misconception is there, that you can increase your coverage limit by just stating that to your insurance provider. What’s Wrong, For high coverage you have to pay a high premium as well and all the expenses written under policy wording will be paid out by the relative car insurance company

  • Split limits:

Here in this option, Bodily injury (Death & Medical payments) and Property damages can be acquired separately — which means in case of physical damage the claim will be settled from the pool of your policy that contains relative indemnity (Bodily injury cover) and if the other person’s vehicle gets damaged then the amount will also be paid by the relative indemnity pool (Property damage)

2. Collision (Personal indemnity coverage)

This a cover that pays for vehicle owner’s own car only in case of Collision. If a person takes this along with liability coverage then not only the loss or damages done to the other party will be paid by the insurance company, but also the owner’s own car will remain protected. In case of Collision, if the personal car gets damaged, unfit or any situation (these can be discussed with the insurance company) then the insurer will pay for the damages and bring the car back to its previous state through “Making payment for damages”, “Replacing the car” or in the worst case “by a new car of same make and model”. Collision coverages require deductibles and are known by Collision Damage Waiver (CDW) or Loss Damages Waiver (LDW).

3. Comprehensive Covers: (Other-than-Collision-Coverage)

There are so many cases where Collision covers do not protect the car stating that “The incident does not come under Collision” or “The incident is from the policy’s exceptions”. To avoid such situations comprehensive covers can be considered.

These are the covers that protect an insured from all the losses or damages that Collision cover does not give indemnification for. Such as, Fire and theft, Acts of God (Natural disasters) and everything that damages the car seeming as Collision but in reality, are not!

4. Full Coverage:

If people want to take up a policy that does cover liability, Collision and comprehensive coverage altogether, then this cover is perfectly appropriate for them. Full coverage policy gives protection against private car’s indemnity (damages and losses) all that is considered Collision or not and third-party liability as well. Some insurance companies have to be stated to add liability coverage otherwise, almost all adds up thrice of these.

5. Extensions:

Every reasonable broker or insurer knows that Full coverage policy is still not a policy that covers each and everything. Certain distinct things can be protected through separate car insurance policies. All those separate covers that can be taken along with the full coverage or with a standard automotive car insurance policy are mentioned below. These are also called “Extensions”.

  • Towing Coverage:

It is a separate cover or a car insurance extension. Although the cost of tow comes under the basic automotive insurance policy still policy coverage sometimes limits the compensation and other facilities. For example, If you have taken a “Collision cover” then mechanical damages, gas outburst or flat tires may prevent the car for working well; as these conditions are not covered in a Collision coverage then towing will not be allowed for it under the policy rules. Such cases encourage to take up an extra “towing” coverage that will assist the car no matter what the fundamental policy looks like.

  • Personal Property coverage:

All those items or accessories in a vehicle that a standard car insurance policy or even full coverage policy does not cover can be protected through taking up this coverage. For example, Radio cassette player, floor mats.

  • Insurance for Rental Cars:

If you own a car that is on rent then you can take “Loss of use” coverage; which is basically protection for rental cars against damages. Other than that, if you’ve taken a car on loan or lease which you are paying off with time then for such cars “GAP Coverage" is available.

  • Uninsured/Underinsured Motorist Coverage [(UM)(UIM)]:

In the United States, there are two terms highly famous in automotive insurance — AT-FAULT and Not AT-FAULT.
The insurance company evaluates which party was at fault during an auto accident, thus compensate the other party and take payment from the other one.

  • Not-at-Fault drivers: The term means, the driver is not at fault! In this case, if the blameworthy driver isn’t founded or is uninsured then the insurance company will compensate the vehicle owner from its own, no matter what.

  • At-Fault drivers: In this case; the insurance company will find the accountable driver and if he isn’t founded or is uninsured then it will compensate the driver and keep its recovery process ongoing. However, If the faulty driver is founded, the insurance company will collect expenses from them and then pay the not-at-fault driver.

If a man takes uninsured (UM) or underinsured motorist (UIM) coverage then, he will be protected against the losses that he might bear from an uninsured or underinsured vehicle owner.

Summary of Step no 2: :scroll:
There are four popular coverages in the United States of America that anyone - hoping to get vehicle insurance - can avail anywhere and anytime: Liability coverage, Collision coverage, Comprehensive coverage and Full Coverage. Other than that, there are apparently “Four” but actually “Six” highly useful car insurance extensions such as Towing coverage, Personal Property coverage, rental coverage (Loss of use coverage) (Gap insurance coverage) and Uninsured motorist coverage (UM) or Underinsured motorist coverage (UIM)

Step Three: Select your Insurance Provider:

After going through the second step, when the policy is selected the proposer (the person who wants to take insurance) should select an insurance provider. Below are all the possible ways through which you may acknowledge the names of all the car insurance providers dwelling in the United States. You’ll also get to know that how you can contact them. Please, keep on reading below;

1. Direct Car Insurance:

Direct car insurers are those who sell vehicle insurance policy directly to the client, without having any intermediary involved in between. This option is considerable for those who want to save their trip to insurance companies or broker’s offices. Direct car insurance companies mostly work through an online medium in this digital age.

Their representative call and discuss car insurance quotes with the proposer or communication can be done through online portals such as car insurance company’s applications, website, email, video-call meeting. Etc.

  • When do you need to buy from a direct insurer?

If you do not want to get involved in the matters of agents and want to directly handle your inquires then it may be a good option. Through this, you may need to carry out your research and compare different quotations of car insurance to select one.

In the process, you’ll find a variety of cheap car insurance policies to high-premium quality insurance quotations. You’ll be wholly responsible to report a claim and be done with all the claim settlement procedure.

  • What is the best direct car insurance provider in the US?

Many big companies like Geico, Allstate, Progressive, Auto-Owners Insurance and Insurance are the best Car insurance companies in the USA; Although they deal with agents and brokers too you can also avail their direct insurance services.

2. Captive Agents:

These are the agents who work for only one car insurance company. They assist you in all the matters of vehicle insurance from buying to settling claims. The famous Auto insurance companies in the USA such as Nationwide, State Farm and AllStates, provide the options for captive agents. You can get in touch with them through their digital platforms.

Some auto insurance companies give agent locator tools on their websites so that proposer (Who wants to buy an insurance policy) can get access to the nearby insurance agent and proceed further in their local offices.

  • When should you buy insurance from captive agents?

Captive agents help you to select an auto insurance policy that best suit your needs. Being sole agents of a single insurance company, they have access to all the important details in depth that you may need to buy car insurance. This way you can properly use all your saved time and energy in some other productive work, rest assured.

While insuring, there are a lot of details and information that needs to be filled out or properly digested before getting in the actual policy in hand. Captive agents will assist you in selecting the right product and settle your claims with proper indulgence.

  • How to find a car Insurance Captive Agent in the USA?

These days everything has moved online, so is the hunt of appropriate car insurance company and related agents. Big Insurance companies In the US like State Fram, Allstate, Farmers insurance group give the option to detect captive agents digitally. It’s a cost-effective method.

You just have to write “Insurance agent locator” in the search bar with the name of the company. The search results will show you their official websites and agent’s locator tool. You can find car insurance agents nearby you, visit their offices and sort out the things.

3. Insurance Brokers:

There is no bigger differentiation found between buying a car insurance policy from a captive agent or an insurance broker but the variation needs to be reminded. Independent insurance brokers work with a real estate brokerage license while captive agents are employed by an insurance company. Independent insurance brokers work for several insurance companies while captive agents represent only one company.

Many people don’t want to get oversold or be exaggerated for getting a car insurance quote so they switch to independent brokers. Independent brokers evaluate the needs of the client and present related insurance quotations of different companies and rest leave onto them to pick one suitable car insurance policy.

  • Why should you buy from an Insurance Broker?

Insurance brokers have more reach-out then that of captive agents. They are interrelated with a lot of insurance companies thus provide the most optimal advice regarding company and policy selection. They are unknown for “consumer interest-based profession”.

Captive agents may keep their self-interest (I.e., commission) first, while independent insurance brokers do not participate in the race. The benefit of buying car insurance from an independent insurance broker keeps upfront client’s suitability.

  • Which car insurance brokers are best in the USA?

  1. Preeminent Insurance

4. Specialist Car Insurance Companies:

Specialist car insurance makes insurance contracts that another car insurer do not allow or agree with. Items like classic or old cars, modified cars, exempted cars, car insurance for foreigners or for a little time being; all those which do not add in the standard policy contract are eligible to propose in many speciality insurances contracts.

  • Why should you buy a specialist car insurance policy?

If you own a brand-new Porsche, Rolls Royce, Mercedes, Bentley, Lamborghini or a treasured classic then you must know that the standard car insurance policy does not insure damages against these extraordinary vehicles.

You need to find a special insurance company that would protect your cars against loss or damages. Other than that, Cars used for commercial purposes or highly modified cars, imported cars or a non-mature drive (who has just passed the test) can also be insured under these types of policies.

  • Who is the best specialist car insurance provider in the US?

  • Lelandwest is one best specialist car insurance company in the USA.

Summary of step no 3: :scroll:
There are mainly “Four” main sources through which one can buy car insurance. For example; Direct insurance, Captive agents, Insurance brokers and specialist car insurance companies. All these origins can be found easily in the united states. Their physical office address or virtual assistance is a few clicks away on the internet.

Conclusion:

Throughout the whole article three steps are explained that helps the potential buyer to hunt for car insurance within united states. All the compulsory car insurance requirements are explained, along with the car insurance coverages details, also the insurance providers dwelling in the united states. Now the readers just have to look for insurance providers and after a detailed conversation — confirm their insurance policies.

how to buy car insurance in US

Frequently Asked Questions (FAQs)

1. How does car insurance work in the USA? :arrows_counterclockwise:

In the united states of America, almost 49 states require compulsory car insurance. Here automotive insurance cover liability claims such as bodily injuries, death loss, medical payments and third-person property damages other than that insurance extensions can be taken to protect your car.

2. What US states do not require auto insurance? :x:

There are only two states in the US that do not require auto insurance: New Hampshire and Virginia. In New Hampshire, there is no as such compulsory car insurance policy required but the citizens will still be liable for ‘Personal responsibility’. Which means they have to pay for bodily injury or property damage done to the third party. So, it’s better if they buy car insurance voluntarily. In Virginia, Car insurance is compulsory but if a driver stays uninsured then he has to pay a certain fee almost about $500 to the state.
However, the fee is just a permission-call for driving on the roads being uninsured. While any damage or injury still will be settled by the car holder. Personal responsibility is still there.

3. What does Compulsory car insurance not cover? :no_entry_sign:

There are other expenses except that are mentioned in the state’s requirements - for which the united states do not make car insurance compulsory but the expenses :dollar: of causing the loss will still be liable to the vehicle holder.

For Example, Time lost due to accident, Death or injury of more people than the compulsory car insurance policy cover or other extra losses such as Personal/private car coverage, fire or theft of insured’s own car etc.

Claims like these need to be settled as well and vehicle holder can take “Extra covers” or “Policy extensions” for these.

4. What does compulsory car insurance covers? : :ballot_box_with_check:

Compulsory insurance only covers the following claims;

  • :heavy_check_mark: In case of death of a person, the indemnity in compulsory car insurance will still be paid out from the bodily injury compensation limit.

  • :heavy_check_mark: If a person gets injured due to the accident, all the medical bills of his/her treatment will be paid out of the bodily injury compensation limit.

  • :heavy_check_mark: If a person damages the other person’s vehicle or anything as a result of the incident as a nearest home’s fence, a telephone’s pole – then all such damages have to be paid from the compulsory insurance property damages’ limit.

5. Can you drive your car in the USA without Insurance? :question: :question:

No, It has Almost become illegal in the united states to drive a vehicle without insuring it. There are many cases such as In Florida and New Jersey, where Personal injury protection (PIP) is mandatory instead of compulsory bodily coverage. In New Hampshire and Virginia Compulsory car insurance is not compulsory yet all personal liability will occur in all these cases.

Note to the Reader:
Great efforts are made in order to collect all the important information that you may find useful relating to the subject “how to buy car insurance in USA”. Your valuable comments will add value to it.
Please let us know in the comment section, if you liked the content or any additional particulars, facts or figures that we maybe missing out and are necessary to add.
Thank you!

Related Articles