Everyone agrees, the car is an essential object in the United States… and consequently car insurance is an essential subject! But for most of us, car insurance is also a real headache because the field is complex, the rules differ from one country to another and the quality of coverage varies greatly from one insurer to another. But how exactly do car insurance in the United States work?
Before dealing specifically with insurance and its characteristics, it is worth mentioning two or three essential points in the United States in the field of automobiles….
You should be aware that you cannot drive with your French or international licence for more than a few months (the time limit varies from one State to another). You must therefore pass your licence again in the State in which you reside or, if there is an equivalence with your licence, as in Florida, you must then pass an “administrative visit” (which goes very quickly) in a specialized organization (DMV), under penalty of being in violation and even considered by the American police as “without a licence”!
It should also be noted that a car garage in the USA will never let you drive away with your newly purchased car if you do not provide proof that you are licensed and well insured. And, on the insurance side, if you present a foreign permit to a company, it refuses you any contract.
In addition, as an expatriate and an individual newly arrived on American soil, you are considered by insurers as a young driver! Even if you have 10 or 15 years of driving behind you, with thousands of kilometres on the road and no accidents in your home country, the American state considers that you have no history and therefore that you are a beginner. And unfortunately the status of a young driver does not make it easy to obtain good insurance at an attractive rate…
How does car insurance in the United States work?
Unlike other insurances (e. g. home insurance), car insurance is mandatory in most American states. However, laws and requirements differ from one State to another. In other words, the minimum coverage required for automobile insurance is not necessarily the same in California, Nebraska or Florida. It is therefore important to ask an insurer who knows the specification of the country in which you live. It should tell you the minimum insurance you need for your car, which can serve as a basis for you to think about choosing the coverage that best suits your needs and budget.