fbpx

How U.S. Car and Health Insurance Work

The United States is a country with a highly developed insurance system. Nowadays, it controls over a quarter of the global market. Therefore, in this article, we will review the aspects of auto and health insurances.

Car Insurance

The car insurance market in the United States of America is the largest in the world. The products it offers are extremely diverse. This is because the car is the most common, and often the only means of transportation for many Americans. And the car owners’ liability insurance is mandatory. The car owner must have an insurance policy when licensing a vehicle, driving it, and renewing a driver’s license. There is no federal insurance regulatory system in the United States, and each state carries out these functions independently.

Today, most auto policies are sold as a package of general insurance that covers payments to car owners and third parties. The following types of coverage can be provided:

  • Collision. It provides compensation for damage from a car accident. Usually, this is the most expensive type of insurance. The size of a franchise typically varies from 50 to 1000 dollars.
  • Physical damage. It compensates the damage caused to the health of persons injured in the accident, including medical expenses and lost income. It is mandatory in most states.
  • Damage to property. It compensates money if a person causes damage to the property of third parties. It is also mandatory in most states.

Compulsory insurance rules exist in almost all U.S. states. However, its types and limits of liability may vary significantly. The differences may be due to such factors as the saturation of the state with cars, accident statistics, and features of civil law regulation.

Health Insurance

This type of insurance is mandatory for all family members, including children. Most states have insurance programs for children that are paid by the state and charities. A child must be a resident of the United States under the age of 18 and meet the conditions of the insurance company. Children’s insurance usually includes the services of speech therapists, oculists, and dentists.

Special health insurance programs

There are also free insurance programs for the elderly and poor people.  They are called Medicare and Medicaid. The first works with older people and the second one can be obtained if your income is meager. In addition, pregnant women, adopted children up to 26 years old, and large families can count on help in paying insurance.

Price

The price of the policy and the amount of compensation depend on the terms of the contract you conclude with your insurance company. You will be offered several rates at the office or on the website of the insurance company. They will be based on your age, income, and state of health. If you do not have insurance, you will pay a fine when this fact is discovered.  The higher the monthly insurance premiums, the more favorable the conditions for you. The average price of insurance for an adult person is $ 250-350 per month.