Fundamentals of Car Insurance in USA
Car insurance is one of the popular and needed insurance in the USA. This is insurance guarantee maintenance of a car. In the USA, there are number states where it is necessary to insure a car on the purchase. Car Insurance in USA covers the cost of accident repairs, regular services, and regular maintenance cost. It was 1925 when car insurance becomes compulsory in two states of America. Those two states were Massachusetts and Connecticut. There are different laws regarding car insurance in every state.
Why Car Insurance in USA is important:
The question arises that why it is so important. It is important that it is a car that is widely used to travel in and out of a city. Besides being needed, it is a comfort as well as a hobby of some peoples. For every reason, one is attached to his vehicles. Similarly, vehicles need a lot of payment or investment. One saves for the year to buy their dream cars. For all these reasons one will be shocked when his or her cars gets accidents. Accidents are due mistakes, the coincidence of the driver or other people. So any small scratch or fault can be dangerous and may be heavy on drivers` pocket. For this, all these reason car insurance is important and mandatory in the USA.
The cost of Car Insurance in the USA:
Though the cost of car insurance varies from state to state and even from company to company. However, according to some studies, average annual cost of car insurance in United States is around $1000 in a year. Which means monthly insurance is $80 in a month. Moreover, another thing which influences cost is the age of a driver. Young drivers are more passionate, so insurance of their cars is a bit higher than those of middle age drivers. The young male driver may have to give more premium than that of girls.
States where it is not mandatory:
We already know you that there are some states where car insurance is not mandatory. Those states are New Hampshire. However here drivers have to pay for any damage to other`s cars if they are at fault. It is not that one can’t have insurance. They can, but in that case, they have to post a cash bond, which is equivalent to damage occurs.
Cost of Car Insurance for USA vs. UK
Amazingly and surprisingly cost of car insurance in the USA is much lower than that of in UK. One of the causes is the cost of services of a lawyer in UK. Yes, up lawyers charge high for a case relevant to car insurance as compared to lawyers in America.
How to Reduce Car Insurance in the USA:
If you find that you are paying too much for car insurance, you can reduce it. One of the best is improving driving which will, in turn, improve the driving record. Following driving rules and driving properly will improve driving quality. Moreover if one changes his driving habits will also improve car insurance cost. Last but not least compare with rate of other companies of Car Insurance in USA.