What Is the Difference between No-Fault and At-Fault Insurance States?
The United States are divided into:
– At Fault (for example, in California the insurance of the person responsible for the accident is paid to the victim)
– No Fault (for example, in Arizona, regardless of the fault, your damage will be covered by your insurance)
You need to know, what type of system is in the state, where you are going to stay.
For California, for example, there must be a minimum liability insurance for the owner in case of accidents, while this minimum insurance will not cover damage to your car, only the minimum liability of you as the culprit. This is one of the cheapest insurance, which all car owners are required to have. Its the basic insurance rules you must remember.
However, unfortunately, its coverage is often not enough when any accident occurs. Even a tourist, who bought a car here in order to just drive a month across the USA, (up to 14 days you can drive without penalty for lack of insurance, otherwise it is either a fine or a parking penalty) should have it.
Talking about the extended insurance
This type of insurance includes:
- high coverage limits
- coverage to both sides (your responsibility and your car)
- car coverage, if it is at the parking and something happens to it
- uninsured motorist liability
- paying for a rented car for the period of repair after an accident or roadside assistance along with paying for a tow truck.
There is also the concept of total damage, this is when the insurance decides that the car is inappropriate to recover and pays an amount equal to the cost of the car on the market at the time of the accident. All costs for the disposal, storage and transportation assumes the auto insurance (but it also depends on the company, where the policy was purchased).
If you decide to keep the car, then its status changes to ‘salvaged’ and you must buy it from the insurance for an amount equal to the residual value of this car after the accident. Insurance deduct this amount from the payment for your car. Unfortunately, not all salvaged cars can be registered after repair.
In some cities in the US, public transport is generally absent, because every family has several cars. America is probably the most motorized country in the world. Here, everything is created for man and for the sake of man. It is simply impossible to imagine an American without a car. That is why it is important to know all the features of car insurance in the USA.