In 2004, about 1 million 237 thousand cars were stolen in the U.S. (by 1.9% less than in 2003). Hijackers chose old autos of popular brands, which can be used as a source of spare parts. Agree, that is a considerable reason to think about best auto insurance.
Perhaps, this is the reason any American insurance manual begins with about the same: “insurance is inevitable, but necessary evil (as taxes that must be paid, otherwise you can go to jail) – and this must be taken for granted.” However, if in Europe debates about the necessity of auto insurance for all drivers are already over, United States failed to reach such legal consensus – general liability insurance is not mandatory in five states. Today, compulsory auto insurance liability operates in 45 U.S. states. In other five states, the state law requires at least a minimum benefit package from drivers. Depending on a driver’s location, it costs from $ 500 to $ 1000 per year.
Auto insurance terms in the U.S. are beyond state control and most often determined by insurance companies. The amount of annual fee is calculated on a complex scheme of scores and bonuses, taking into account cost of a car as well as driver’s insurance history for the past year.
The main parameters of insurance coverage, provided by best auto insurance companies, are determined by three numbers – value of maximum compensation for physical and moral damages for each victim, amount of payments to all injured in the accident and amount for compensation of material damage. Depending on the state, minimum sums of cheap auto insurance compensation can range from $ 10/20/5 thousands in Mississippi to $ 50/100/25 thousands in Maine. In California, a car owner must have a policy with minimum liability insurance in case of bodily injury and property damage estimated at 15 thousand dollars, if one person suffered, 30 thousand dollars – if more than one person suffered, and 5 thousand dollars to cover property damage. In New York and the District of Columbia, these parameters are: 25/50/10, and in Alaska – 50/100/25.
However, nearly in every state, insurers will offer you buying a voluntary auto insurance policy in addition to the minimum and compulsory best auto insurance package. After all, the cheapest insurance package is often able to cover only a portion of damage resulting from accident. A driver will have to refund other expenses from his own pocket.