No matter where you are in the world, having a reliable insurance cover in place while on the road is paramount to protect yourself and others. But car insurance does vary greatly from one country to another and it’s important to understand how your policy compares.
Are you moving to another country? Or are you considering taking your car abroad? Here’s what you should expect!
- No Pay, No Play
- Insurance That Follows The Driver, Not The Car
- Comprehensive Insurance Is Optional In Most Countries
- Third Party Liability Cover
- Car Insurance Rates Vary Greatly From One Country To Another
- Thai Insurers Are Trialing A Plan That Starts and Stops With The Engine
Most states in the US already have mandatory uninsured and underinsured motorist coverage to protect insured motorists in the case of an accident with an uninsured driver or hit-and-run events.
However, this policy alone isn’t enough to incentivize motorists to invest in insurance, and, currently, an estimated 12.6% of drivers do not have any insurance coverage. That is why 10 US states – including Alaska, California, Louisiana, and Oregon – have now introduced a “No Pay, No Play” law.
This initiative prevents uninsured drivers from receiving the first $15,000 in personal injury and $25,000 in damages to the vehicle paid by the insured driver, even if they are not at fault.
In some countries, the insurance policy protects the driver and the car he or she is driving. However, if the car is driven by someone else not specified in the policy, the driver cannot benefit from the plan’s coverage.
Instead, in nations like China, America, and Portugal, the insurance follows the vehicle, meaning that the main driver and infrequent drivers (people who occasionally use the car) are covered by the same policy.
A 2018 UK petition proposed for insurance plans to follow vehicles rather than the driver, which would reduce insurance costs for families with a single car and increase safety in the case the only driver is under the influence of alcohol.
While third-party-only insurance is a legal requirement in most countries, comprehensive insurance is not.
Comprehensive plans are designed to cover the policyholder against damages reported to their own vehicle or persona during an accident, and they are most popular among owners of high-end cars, who would face high repair costs following a crash.
Pro tip – while most people perceive third-party-only insurance to be cheaper, opting for comprehensive plans is one of the best ways to make insurance premiums more affordable.
When getting involved in a car accident, the safety and well-being of all the parties involved is a top priority. Third-party liability insurance is the coverage that allows drivers to financially protect the other parties involved in an accident.
Having this kind of insurance is mandatory for all drivers in most countries, including the UAE. While the Emirates are some of the safest places to drive and a global hotspot for supercar lovers, all car insurance from InsuranceMarket.ae and other specialized providers include third-party liability cover.
Currently, in the US, the average cost of full coverage car insurance stands at $1,771 per year. While American families commit around 2.57% of their income to cover their car’s costs, this percentage varies greatly in other countries.
For example, in Europe, monthly premiums vary from €66 in Latvia and around €100 in Croatia to €400 in France and over €622 in the UK. In Canada, these costs average between $1,300 and $1,800 per year, while, in Mexico, they can be as low as $600.
The insurance market is constantly in evolution, and new types of policies are introduced frequently to meet the changing needs of international drivers. Some of the newest entries include the revolutionary insurance policy that starts and stops alongside the car’s engine, allowing drivers to be insured only when driving and cutting costs by nearly 40%!
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.