Why car insurance is important in the USA?
After buying a new car, used car or lease car, the first thing before stepping on a driver is to buy car insurance to avoid unnecessary incidents or accidents.
Many customers who buy a car do not know this, sometimes losing money because they do not have car insurance. So, why car insurance is so important?
1. Car insurance is compulsory in the USA
When buying a new car or lease car (long-term car rental), the dealer will ask if you have car insurance because they always require 2-way insurance to protect the property that the car is owed.
If you already have insurance for your active vehicle (2-way) and have not expired, dealer will add your new car to the old insurance record and be insured within 3 days at no cost. Then you have to go to the insurance company to check in for your new car or Lease.
If your insurance is only 1-way or 1-way and a half, dealer can sell 2-way insurance to you within 3 days for about $ 100. Car buyers can refuse to buy this insurance and contact their insurance company directly to buy new car insurance, saving $ 100.
When you buy a used car a lot, you pay very little attention to buying auto insurance before you drive home. When buying an owner’s car, owners often cancel their auto insurance right after or aren’t sure their car is insured.
2. Car insurance can be purchased via the phone with a credit card
So a buyer who buys a used car after completing the purchase and sale procedure should call his insurance company to buy insurance for his new car immediately.
When buying insurance over the phone, you only need to provide the vehicle VIN (identification number) and credit card number. Therefore, they can open or add to the old one.
Buying this insurance ensures your safety when you are driving home and then go to your insurance agent to complete the procedures or correct the following if necessary. Many new drivers buy auto insurance to buy insurance while their car is not insured.
This sometimes leads to many consequences, the unhappiness that you hope you should buy insurance before driving home.
3. Things to know about how to buy insurance after buying a car
Before buying a car, you need to have the phone number of your auto insurance agent. Like AAA Insurance or State Farm. Call your insurance agent or agent that used to sell you insurance, and tell them you are buying a new or used car and you can call them for insurance.
Buy 2-way insurance: depending on the compensation, you have different fees, usually customers buy about 30k – 60k.Two-way insurance will compensate for damage to the insured vehicle regardless of whose fault and then depending on whose fault. So, that person’s insurance will go up for the next year.
Buy one-way insurance: only compensate for the crash if you are at fault. And you have to spend money on your own car milk. If you are not at fault in the accident, your crash insurance will pay you.
Many customers also have the concept of buying one-and-a-half insurance, but this type of insurance can cause confusion for the buyer to compensate.
You will need to talk to your insurance company representative to ask for any differences. The representative should give papers and explanations to you, not oral explanations about legal matters or compensation in case you have an accident.
Buying a used car, customers can depend on their financial level to buy two-way or one-way insurance. When buying a new car or lease car, you must buy 2-way insurance.
It is important that your license has a clear first issue date.
In the US, people driving to the street are required to have insurance or be financially responsible in all 50 states and Washington DC. If you are caught driving without insurance, you may face penalties: Tickets and fees for not having insurance; Suspension permit; License recovery fee; Vehicle custody; Request an SR-22 (a form of insurance that varies from state to state in the US); Sentenced to prison.
Not owning auto insurance can carry different penalties, depending on the US state. In general, the penalties for failing to submit insurance are less severe than driving uninsured. Unless, you need to submit proof of coverage in your car a defined time frame. This time frame, designated by the supervisor, can be anywhere for a few days.
First offenders who do not have insurance while driving, will be fined at least 150 USD, up to 5,000 USD. In addition, you will be deprived of your driver’s license for 3 years, your driving suspension; in some cases, will be detained and sentenced to 15 days in prison.
Driving license suspension
If you are caught driving without insurance, your license may be suspended, and the suspension period may change. In some states, a suspension ends when you submit insurance or file an SR-22.
Some states will only revoke your permit if you are arrested without being financially responsible in the accident. While other states will suspend your permit after you break the traffic and ask you to show insurance within 24 hours. The license recovery fee can be up to several hundred dollars. The total cost of the fine can be equal to the one-year auto insurance premium.
Vehicle storage and registration
If you are caught driving without insurance, a court can order your vehicle, driver’s license and vehicle registration. In most states, you won’t be able to drive again until you submit valid insurance to state court.
Get a prison sentence
In most states, driving without insurance is considered an offense and could potentially lead to a prison sentence. The jail term will most likely not apply to the first offense, unless you cause a serious accident. But repeated offenses incur higher fines and stiffer penalties, including going to jail.
If you do not have insurance and are caught driving, you could face a few days or as much as two weeks in prison. However, in some states, such as Michigan, you could face up to an entire year. These fees may also come with additional fines and fees.
Financial consequences
The fine can range from $ 150 – $ 5,000 for your first violation, including all added fees. However, the penalty for an accident while driving without insurance can be much higher. It may even be enough to make you default.
In the event of an accident where the driver is uninsured, the driver is likely to have to spend tens or hundreds of thousands of dollars in repairs and hospital bills. If you are found to be at fault in the crash, you could be sued and tracked for a savings account in your name.
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