To drive in the US with a purchased car from the yard of a dealer, you need an insurance policy. The basic rule for this is always a US address. A hotel address can also do. You must trust the staff though that they forward any incoming mail on time to an address specified by you.

Are you the man who is highly-likely to buy car insurance in the USA?

In the US, insurance is not completed specifically for the car. It is completed for the requesting persons. As a result, e.g. when a car change occurs the same insurance persists. All you have to do is to tell the insurer about your new car. The same applies to rented or borrowed vehicles. You drive with your own personal insurance (more on this topic here

There are several categories of auto insurance in the US. Three of them are relevant to us:

  • Personal Injury Protection – PIP: compulsory in Florid. It compensates for hospital costs, income loss and costs for domestic help ($ 330 for 6 months).
  • Liability coverage – LC: concerns property damage liability (PD).  Good for persons outside the vehicle (Bodily Injury Liability – BI)($ 250 for 6 months). The least insurance amount of $ 25,000 for Florida-registered cars seemed too small.
  • Comprehensive – C: it occurs in the event of theft, damage by fire or other losses. It costs $ 100 for 6 months with a deductible of $ 500.

Lest you have another crack at negotiating car insurance

The costs of your insurance depend on a variety of factors, such as 

  • Your place of residence and age
  • The number of previous accidents, as well as the construction year, value, theft statistics, traffic tickets and accident safety of the car.

What kind of car should it be? Do you travel mostly in city traffic, often alone or in pairs, is it needed for transport or for the holiday trip and frequent motorway journeys? Important here also the maintenance costs, such as vehicle tax, insurance & liability insurance, the operating costs, the depreciation, as well as the decision to gasoline or diesel. It is also important to keep informed about the amount of the motor vehicle tax. You will also be asked for the purpose of risk determination, how far you have to go to work by car every day.

In the event of damage, you must contribute to the repair costs with an amount specified at the time of conclusion of the insurance. It is a deductible part of it. The amount of this part also determines the insurance costs. If you pay, say, $ 500 to repair the damage, your insurance costs will be lower than if you agreed to pay $ 150.

And today we learn…

In addition to theft, car insurance in Florida (and in the USA) should primarily cover bodily injury and property damage for you and your family. This also includes expenditures for potential accident opponents. Depending on the state, there are different requirements as to what extent the insurance cover must be. The insurance agent will let you into the details. If you finance a car through a loan, the bank will also have certain insurance requirements.