Auto Insurance
Auto insurance market in the United States of America, of course, is the largest in the world and offered it insurance products are extremely diverse. This is due to the fact that for many Americans, the automobile became the most common, and often the only means of transportation, and the fact that the car owners’ liability insurance is mandatory. Car owner must have insurance for his vehicle licensing, management and renewal driver’s license. In the U.S. there federal system regulation of the insurance industry, and each state performs these functions independently, so different and requirements for auto insurance.
Today, most auto insurance policies sold as a package of insurance services, covering insurance payments car owner and third parties. The following types of insurance coverage:
collision. Damages awarded against damage to the vehicle when the accident (collision with another car or object). This is usually the most expensive form of insurance. Provides for a deductible, the amount of which usually varies from 50 to 1000 dollars;
overall coverage. Damages awarded against damage to the car in all other cases, except as provided above, due to fire, theft, collisions with animals, falling objects, earthquakes, floods, etc. This type of insurance, like the previous one, in almost all states is voluntary;
physical damage. Any damage caused to the health of persons affected by the accident through the fault motorist, including medical expenses and lost income. Is mandatory in most states;
damage to property. Refundable damage to property of third parties (car, fence, house, etc.) in a collision caused by the automobile owner. Is mandatory in most states;
medical expenses. Be reimbursed medical expenses and funeral costs the owner of the vehicle or its passengers, and sometimes – others. Is mandatory in some states;
personal injury (“personal injury protection”, or “PIP”). This insurance is similar to the previous one, but it provides a wider range of costs. Coverage also includes lost income and additional security of a victim in the accident. As a rule, is required in states where insurance policies “without fault”, which is discussed below;
uninsured / underinsured driver. Reimbursed medical expenses, lost income and pay non-economic (moral hazard) in a collision with a driver having no insurance coverage or having it in an insufficient amount. Protection afforded to the case when the driver of another car flee the scene. This type of insurance is also mandatory in many states.
Norm of compulsory insurance exist in virtually all U.S. states, but its species and limits of liability may differ significantly (see table).. The differences are due to several factors: the saturation state of road, accident statistics, particularly civil law regulation.