Question about car insurance in USA?

Question

I am from Australia, and Im curious about how your insurance system works.

Im our case, when our car comes due for registration, we need to get a roadworthy slip, and a green slip, which is compulsary insurance. It is a public liability insurance, and also covers the injured party in the other vehicle if you should have a crash. You have to have these items.

You need to buy both of these before you can register your car. You take those items to the RTA (Governing body) and register your car and anyone can drive your car legally provided they are licenced.

From there, we can choose to insure our cars. You can select Third Party, which will cover the other persons car or the item which you hit (house etc) but not your car, and your not covered in the event of theft or any damages to your car.

Or you can choose to have full comprehensive insurance. This will cover your car, and the other vehicle. It also covers you if your car is stolen or damaged.

How does it work in USA

Answer 1

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Answer 2

It varies from state to state.

For the vehicle inspection: Some states do require a safety inspection. Some counties in certain states require an emissions test only. Other states don't require any tests so long as you can pay your registration fee and show proof of whatever is the minimum required amount of insurance for that state.

For the insurance minimums: This also varies from state to state. Pretty much for all states if your vehicle has a lien holder on it you pretty much have to get full coverage in case something happens to your car before it's paid for. After that It's so complex, depending on the state, I can't even begin to describe all the variations of insurance offerred.

To top it all off, some companies pull your credit score and charge more if your credit isn't up to their par. I don't know what a persons credit score has to do with their driving record, but they get away with it.

Good luck.

Answer 3

You're going to laugh.

Here in the USA, each state says how it works in each state.  Well, we don't have 50 different ways, it's closer to 30 different ways.

Some states, you need the insurance in place to register.  Some, you just sign a piece of paper saying you have insurance (no proof required).  Two, don't require insurance.  Several will allow a bond to be posted instead of insurance.

Sorry, it's a bit of a mess over here, as far as insurance goes.  There's no federal oversight or regulation - it's all done on a state by state basis.

Answer 4

As you are learning, Insurance is a mess in the USA.  I have been fighting for compulsory insurance here for years and strange as it seems, it is the Insurance companies themselves, who are against compulsory auto insurance.  Their lobbyists are continually greasing the palms of our politicians.