The insurance industry is constantly changing at a rapid pace, with premium revisions and new product launches. With the recent advances in IoT and AI technology, the development of “telematics insurance” is also underway in car insurance, which offers lower premiums to drivers who rarely brake or accelerate suddenly. With these technological advances, the conditions that determine individual insurance premiums are expected to become increasingly complex and sophisticated. In this article, we would like to introduce a slightly unusual method of calculating car insurance premiums in the United States.
What factors affect car insurance rates in California?
Q: Automobile insurance premiums vary depending on various factors such as age, but in California, certain data is related to premiums. What is that data?
[Explanation]
In Japan, if you have a gold driver’s license or if you drive a small distance per year, you will receive a discount on your car insurance premium. The same discount services are available in the United States, where the premiums vary depending on the policyholder.
In many states in the United States, you can get a driver’s license when you turn 16, so even high school students drive to school or to lessons. This is a little hard to imagine in Japan, but in the vast country of the United States, there are many areas without public transportation, and cars are a very important means of transportation, so even high school students actively obtain driver’s licenses and drive cars normally.
For these reasons, in the United States, where students have many opportunities to drive cars, when students apply for car insurance, their premiums are discounted depending on their school grades. This is based on statistics that show that students with good grades are less likely to have traffic accidents.
The coverage varies! What’s included in American car insurance?
In California, it is mandatory to have automobile insurance, so you must take out insurance as soon as you buy a car. The insurance company will pay compensation when you are liable for damages in a personal injury or property damage accident. The amount of compensation for “liability” is determined by the
minimum limit for personal injury and property damage, and the insurance premium changes depending on the amount of compensation. In addition, if you are stopped by a police officer while driving or when registering your car, you will be required to present your automobile insurance certificate, and if you do not have insurance, you will be subject to a fine. However, since
“liability” is automobile insurance in case you are liable for damages, it does not cover your own medical expenses or car repair costs. Therefore, various types of compensation are available to protect yourself and your passengers.
■ Passenger Insurance (Medical)
If the driver or passenger is injured in an accident, it will cover medical expenses and other costs up to the limit.
■Uninsured Motorist Insurance:
Covers the policyholder’s medical expenses and damage to the car in the event that the other party is liable for compensation in an accident, but is not covered by automobile insurance and is unable to pay.
■Collision & Comprehensive Insurance:
Covers damage to the car in the event of an accident, theft, fire, vandalism, etc. Insurance premiums are set in detail according to the year, model, and grade of the car.
In addition, there are services that cover the rental car costs required to repair the car after an accident, and services that cover the towing costs of a car that is disabled due to an accident.
Just like Japanese car insurance, you can choose from a variety of services according to your preferences.
In the United States, there is a risk of accidents with uninsured vehicles.
In Japan, there is a vehicle inspection system, and if you do not have compulsory insurance, you will not pass the inspection. In addition, when canceling compulsory insurance, you need a document proving that the car has been scrapped, and there is a system in place to prevent cars without compulsory insurance from driving on public roads.
On the other hand, the United States also has a vehicle inspection system, but it is mainly an inspection to check the condition of the car, and in some states it is only a simple check. Also, since there is no system to check taxes and insurance enrollment like in Japan, there is no strict check on whether the car has liability insurance, which is actually mandatory. Due to these differences in the vehicle inspection system, even in California, the percentage of people without insurance is decreasing year by year, but it is said that one in seven people is uninsured as of 2015.
Therefore, “Uninsured Motorist Insurance” to prepare for accidents with uninsured motorists plays an important role in avoiding risks.
In both the United States and Japan, it is important to consult with an expert to determine the details of your compensation.
In the United States, where there are various systems depending on the state, not only the laws but also the discount system for car insurance differs depending on the region you live in. Therefore, when choosing car insurance, it is important to use the consulting of the insurance company to have the best plan proposed to you.
In Japan, by using the consulting of the insurance company, you can efficiently prepare compensation that suits you from a large number of car insurance.
■ Personal injury insurance
A comprehensive plan is available that can cover traffic accidents while walking for your family. ■ If you subscribe as a special clause for
personal liability insurance
, you can cover liability in case you become the perpetrator in an accident while riding a bicycle. It can be quite difficult to choose the best compensation that suits your car life from the many car insurance plans. With the advent of the “telematics insurance” mentioned above, the car insurance industry is undergoing major changes, so why not take this opportunity to reconsider what compensation you really need.