How does American Auto Insurance vary from the Rest of the World?

Auto insurance in the United States varies a greatly from other parts of the world. Most other countries, particular those throughout Europe, have systems in place which are largely dictated by the insurance companies themselves.  In the US, auto insurance legislation is controlled by the use of two contrasting systems that can vary from state to state.

American insurance companies use the Tort system throughout the majority of states although there are still a large number of areas where the no-fault system is in place. In rural areas where traffic levels are low, some states will offer motorists the chance to drive without auto insurance as long as evidence can be provided of financial responsibility in the event of any subsequent accident.

While most mandatory insurance requirements in the United States concentrate on bodily injury liability, motorists in Europe are issued with policies that offer protection for their vehicles as the most significant term of sale. Although bodily injury liability is covered in most policies, court culture in Europe still hasn’t expanded to the same levels as the US at the present time. Motorists in Europe are also issued a green card which allows them to use the insured vehicle in an EU membership country as long as the time spent abroad doesn’t exceed six months in a calendar year.

The United Kingdom differs slightly in that most policies insure the driver rather than the vehicle and because of this, motorists who have a comprehensive auto insurance policy will usually be able to drive any other car on a third party basis as long as the registered keeper of that vehicle is comprehensively covered themselves.

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