Australia | International

The Differences in US and Australian Auto Insurance

Auto insurance is a legal requirement in Australia and the United States of America. However, auto insurance legislation works different in each respective country. It can be particularly useful to know these differences if you are working overseas or planning to relocate.

State Laws

In America, auto insurance legislation varies from state to state. Some areas operate using the Tort system while others implement no-fault insurance laws. This makes the legal requirement for each individual state different. Demographics, vehicle usage and previous accident rates will all affect the legislation that is used.

In Australia, the same auto insurance laws apply throughout the country. However, premiums can fluctuate for the same reasons legislation might change in the United States. These are important difference that should always be kept in mind.

Coverage Differences

In the United States, the State Department of Motor Vehicles will require different levels of coverage that may include liability insurance, personal coverage, uninsured/underinsured motorist insurance and personal injury protection. However, not all of these policy additions will be required in every state.

In Australia, road users will have a choice of three different types of policy and they will be considered to be road legal as long as the minimum requirement of a third party policy has been obtained. Fully comprehensive polices and third party (fire and theft) auto insurance policies are also available.

Purchasing Insurance

Irrespective of whether you live in America or Australia, the best place to purchase auto insurance is through a price comparison website. The best deals can always be assured and multiple policy offers can be compared on a side-by-side basis in order to save money and improve your coverage credentials.

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