Do Vehicle Insurance Differ In Other Countries?

Auto insurance policies are some of the most popular in the world and for good reason. It doesn’t matter if you are the world’s safest driver, you can still get into a car accident because of someone else’s negligence and recklessness.

This is why you always have to take out an auto insurance policy, even if you think it is not likely that your car would get hit –– some people have their cars damaged while they were actually parked.

Despite being an important insurance policy, it does differ from one country to the other.

The United States

Auto insurance in the United States can be a bit complicated, and it is mandatory in just about all states –– except New Hampshire and Virginia.

Generally speaking, the insurance requirements vary between states, and each one has its own requirements and minimum coverage limitations.

On average, auto insurance costs between $500 and $1000 in the United States, so you might find some variations depending on where you are in the country and the availability of insurance companies.

In some states, you can’t register your car unless you have an insurance policy, but that doesn’t apply everywhere. In other states, you don’t even need to walk around with your auto insurance policy papers until you go through your first accident.

You should also know that, in the US, drivers are often required to have coverage for bodily injury as well as property damage. The coverage limitation for both also varies between states, ranging between $5,000 and $100,000 depending on the state.

The calculation of Premiums is also a bit complicated in the US, with plenty of factors playing into the equation. With every accident you go through, your premiums will probably increase.

There is also a scheme of points and bonuses that affects the premiums and whether they go up or down. 

Canada 

The system is a bit different in Canada. For starters, some Canadian provinces have a public auto insurance system, but for the rest of the country, you have to go through private providers.

As you can see if you visit here, a lot of factors affect the rates you will get from insurance providers, including location, the model of the car, and the type of coverage. It helps if you check an insurance calculator first so you can get more than one rate because they will vary from one provider to the other. 

Basic auto insurance plans are mandatory in Canada,  but it is up to each province to determine the minimum requirements for coverage and the benefits that every driver needs to have if they want to drive in the country.

The great thing about auto insurance in Canada is the fact that it is not as expensive as a lot of other countries, though it might surge in places like Ontario and British Columbia.

Germany

Auto insurance is very important in Germany, and it has been obligatory for every driver to have third party personal insurance if they want to drive a car in the country since the 30s.

Car owners are allowed to get more comprehensive plans as they see fit, but all the available plans are through private providers.

On average, you’d pay around €1,400 per year for auto insurance, which isn’t cheap, but it also is less than some other countries.

A lot of factors will be taken into consideration before determining your premiums, like the region you’re in, the type of car, and maybe your driving history.

UK

Obligatory third party personal insurance has been required in the UK since 1930. This means that people who want to drive any vehicle in the country have to be insured at least against personal injuries.

The police could arrest you if you were apprehended without the required insurance policies, and you will pay a fine or a higher penalty if the case goes to court.

Auto insurance in the UK is more expensive than it used to be –– around $1,300 annually now –– and that is mainly because of the high number of uninsured drivers as well as fraudulent insurance cases.

Auto insurance policies are present in just about every country in the world. It isn’t exactly a luxury to get one, but rather a necessity, and even an obligation under the law in several countries.

A lot of people imagine that they could never get into an accident because they are careful, so they drive without insurance policies. Needless to say, this is very risky because if you do get into one, you will be forced to pay a lot of money.

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