Auto insurance in USA is regulated legislatively up to states, not in federal level. Result from this is simple and important.
Our narration will be run concerning to California state, in which the author of these lines is licensed auto insurance agent.
Almost in all states (there are some exclusions) USA auto insurance is compulsory in LIABILITY part (civil responsibility), i.e. if stranger suffered from us. The size of required cover is varied from state to state. Fro example, in California it amounts about $15,000 bodily injury per one sufferer and to $30,000 per more than one. Besides, there is accountability for damaging somebody's property - $5,000. All this is reckoning to one accident. Usually, it is used fractional writing for size covering expression. Note 15/30/5 corresponds to described higher cover in California state, which every car driver must have by the state's law.
The driving without auto insurance is the serious crime and is punished strictly. Life advice: Never begin any relationships with people, that drive cars without auto insurance or argue that it is possible and base why it is not so terrible in this crime. Such people are on the way to the big troubles - you needn't bear their company.
According to police statistics in California state 28-30% of the drivers haven't any auto insurance. Add to this the rate of people, which have minimal cover required by the law, and you'll understand, that if something serious happens on the road, the chances to receive money from guilty will be very minimal. It is followed next Conclusion â„-1 - You haven't figure on that in occasion of trouble you‘ll be covered by somebody's auto insurance - you must have your own.
States are divided on :
-At Fault (for example, California - sufferer is paid by auto insurance of the accident guilty);
-No Fault (for example, Arizona - in spite of the fault your damage is compensated by your USA auto insurance)
Conclusion â„-2 - You must know what system is in the state, where you live or suppose to leave.
If a man is practically poor and is going to stay poor till the end of his life, then driving without California auto insurance doesn't bother him financially - there is nothing to take from him. In other cases the auto insurance sum must protect driver from immunity by judicial way his assets and income (including future income).
Besides, reasoning why driver needs to insure, we must know, that there are no other occupations which are as dangerous as driving. So, we must ask ourselves "if I am so swine, that will risk with lives and health of other people in order to economize one ten or another on their mutilate lives?"
So, minimal auto insurance for California is 15/30/5, which, in your consideration, must be optimal LIABILITY for the average man? For example, in Russia responsibility for damaging of somebody's property - 4000$ , I always extends it to 10 000$.
According to wealth it depends on Risk Exposure. The most spread combination is 100/300/50. Someone has 250/500/100, though the difference in price is very small. Just only few understand what to do and there are no any to explain. 9 men from the 10 in USA are insured inadequate.
But we have the section ahead, where we in detail will describe it.