Does American auto insurance follow people or cars?

Some people will ask, does American auto insurance follow people or cars? Generally speaking, American car insurance is to follow a car. However, it also depends on the terms of different auto insurance companies.

1.Some auto insurance companies stipulate that auto insurance companies follow cars. For example, if you have an accident driving in a friend’s car,then your friend’s car insurance will be paid primary liability, while your own car insurance will be paid Secondary Liability. That is, when the amount of your friend’s car insurance is not enough, your car insurance will be used as the Secondary Liability.

2.However, some auto insurance companies will also make it clear that they will not pay for all kinds of losses caused by “you” driving accidents in the above examples. Therefore, we should ask our own insurance company in detail about the issue of car following or car following, so as not to cause unnecessary trouble.

3.There is a great risk in using other people’s vehicles or lending them to others. If you borrow someone else’s car to drive, an accident will cause great trouble to your friends; if you lend someone else’s car, an accident, premium increase, legal disputes and so on, you can’t escape. So, no matter which one, please think twice.

Note: if your family or friends will use your vehicle frequently, it is highly recommended to add these people to the list of insured persons. Some companies may charge extra fees. For details, you can check your insurance company.

Finally, we should bear in mind that having a good driving record in the United States can help us save a lot of premium. Personal safety is the most important thing. Remember not to drive without car insurance.

The choice of car rental insurance in America

1、Collision Damage Waiver (CDW) 

In different states and different car rental companies, the insurance ranges from US $7 to US $20. Please note that this insurance is paid by day, not by each lease, so if the lease term is long, the amount is not small.

As the name suggests, vehicle loss insurance can guarantee that during the lease term, no matter it is a collision or a car accident, the user does not need to pay for it. It is all handled by the car rental company (insurance company).

What should be paid attention to when choosing this insurance type is: some car rental companies will set an initial compensation amount for this insurance type, such as $500. After a vehicle collision, the repair cost below $500 will be borne by the user, and the car rental company (insurance company) will be responsible for the part of the initial compensation amount above $500. Users can also choose to buy full CDW, also known as “non deductible insurance” in China, to reduce the initial amount of compensation to 0. In this case, the user does not need to bear any repair costs, and the car rental company (insurance company) is responsible for it all.

Another type of insurance usually associated with vehicle loss insurance is theft protection (TP), that is, theft insurance. Some companies separate this insurance from CDW, and collectively call it loss damage waiver (LDW). Please note that some car rental companies also have limits on the amount of claims for TP.

If the car rental company you choose has a deductible for car damage insurance, whether to buy non deductible insurance depends on your driving skills and the difficulty of the route. Due to the high labor cost in the United States, it is possible to buy several hundred dollars or even thousands of dollars for a slight accident. Novices usually recommend buying it.


That is to say, the 1 + 2 introduced in the first part, that is, bodily injury ability plus property damage ability, is to protect the other party. After the accident, if you cause the other party’s vehicle or personnel losses due to your reasons, you need to have insurance to pay for the other party’s car repair and medical expenses. In the United States, driving on the road without ability is a violation of the law in most places.

If you own a car, your car insurance will generally cover the liability of renting a car.

If you don’t have your own car, you’d better buy a special liability insurance from a car rental company just in case. Before you buy, read the terms carefully, see the deductible, that is, how much you need to pay, and then the insurance begins to pay.

3、Personal Accident Insurance(PAI)

Generally, you will take your own travel insurance or accident insurance, so most people don’t have to buy it.

If you don’t have medical insurance or travel insurance, you can buy it from a car rental company. PAI generally also covers personal effects coverage (PEC), that is, bear the cost of stolen or damaged items in your car.

4、Road Assistance

In fact, roadside assistance is not covered by insurance. It’s just a service provided by a car rental company. It usually costs about $6 a day. After purchasing this item, if the vehicle breaks down or has a flat tire on the way, you can call the rental company. The rental company will send staff nearby to replace the vehicle or tire for you. It’s best to choose the place where you want to run long distance and go to the valley, or you will not be able to hold on the endless American highway.

The above several types of insurance have basically covered the mainstream insurance types, which can fully meet the protection needs of Chinese consumers to rent a car and drive in the United States. As the amount of insurance is usually relatively large, when booking a car rental company, it is necessary to see whether the price includes insurance. Don’t be fooled by the “naked price” without insurance. The amount of insurance is often more expensive than the amount of car rental.

It is suggested that you can book a car directly on a website like car rental. The price already includes car damage insurance and third party liability insurance, which will save a lot of money than renting a car directly from a car rental company.

The most comprehensive US auto insurance guide

There are three things you must have when driving in the United States: your driver’s license, license, and insurance card. In the event of a car accident, compensation and medical bills can be prohibitively high, so not having car insurance is like not having insurance. And in most states, it’s illegal to drive without insurance.

First science, in the United States there are two kinds of car insurance is mandatory to buy, one is the body injury liability insurance, the other is the property damage liability insurance.

If there is an accident, these two kinds of insurance are to compensate the other party’s personal and property losses. Yes, it’s not for you. So insurance companies often provide other types of insurance, you can choose on demand. If you want to get more comprehensive protection, you can generally choose full coverage.

To determine the type of insurance you need to buy is to choose an insurance company and choose the one most suitable for you.

Options of American auto insurance

1.Bodily Injury Liability

If you buy this option when the accident is caused by your fault, the insurance will cover the other party’s physical injury, such as the other party’s medical expenses, and some mental injury, which needs to be decided in court, The body injury liability insurance includes the expenses of the other party’s medical treatment, rehabilitation, mental loss, funeral, your lawyer, etc. after the accident, the minimum amount of insurance stipulated by California law is $15000 per person, and the minimum amount of insurance for the whole accident is $30000. Although the law stipulates that 30000 is OK, try to buy a large amount.

Some people are really poor without assets. The other party’s lawyers generally don’t pester with each other. They have nothing to mortgage after winning. There are even many cases on the forum where they don’t want to go back to China without paying for their degree. But those who want to develop in the long run will choose a larger insurance limit within their ability. Avoid an accident that will affect future life.

2.Medical Expenses or Personal Injury Protection

Insurance for the medical expenses of the driver and passengers.It generally includes medical expenses, funeral expenses, etc.However, medical payments does not include the cost of work delay and other costs due to physical injury.However, the compensation scope of personal injury protection is relatively large, including work delay expenses and other expenses.Because you are likely to have other passengers in your car, it is necessary to purchase this auto insurance clause.If you already have better medical insurance, you can not buy it, but if there are other passengers on the bus, you’d better buy it.

There are 12 states in the United States that have no fault auto insurance laws, that is, no matter who is responsible, your insurance company will compensate you for the loss caused by personal injury:“Currently 12 states and Puerto Rico have no-fault auto insurance laws. Florida , Michigan , New Jersey, New York and Pennsylvania have verbal thresholds. The other seven states— Hawaii , Kansas , Kentucky , Massachusetts , Minnesota , North Dakota and Utah — use a monetary threshold.”

3.Property Damage Liability

You are the party in fault, to pay for the other party’s property damage. Property damage here usually refers to damage to someone’s car. This can include damage to their car, house, fence, etc., as well as when you drive into a utility pole, fence, building, etc. Property damage liability insurance is mandatory in most states.


When you buy collision insurance, it generally allows you to choose Deductible amounts, which range from $250 to $1,000. Co-payments, also called franchise, refers to either because hit other vehicles, or telephone poles, fence, housing and other objects caused by vehicle damage, the insurance company will pay more than co-payments repairs, if the car completely scrapped, insurance will be made in the vehicle when market value compensation, the highest claim amount is up. This insurance is actually an extension of liability insurance and a supplement to their own vehicles. That is to say, if you choose the $250 co-payment, you will have to pay $250 in the event of an accident, and the insurance company will be responsible for the excess. So the higher the co-payment, the lower the premium. Some policies have zero co-pays and higher premiums.


Protect any unidentified object or damage caused by natural disasters. Including stolen, burned, flooded, tree smashed and so on. There’s a self pay amount. You usually choose $500. The settlement of this claim does not necessarily affect the premium in the coming year. For example, the flood is not caused by driving skills, because of the low probability. If you buy your car by rent or loan, this insurance is mandatory.

6.Uninsured and Underinsured Motorists Coverage

This insurance covers you. If the driver who caused the accident has no insurance, or the insurance limit is not enough to compensate for your loss, or the other party escapes, this item will lose money to you. Usually, this insurance also covers you in case of an accident while walking. In some states, the insurance is compulsory. This insurance also includes two parts: the amount of compensation per person and the maximum amount of compensation for a single accident.

When buying insurance, there are often semi insurance (semi insurance) and full insurance (all insurance). The difference between them is that coverage only buys 1 + 2 basic insurance, which is semi insurance. Generally, people who buy a car with a loan require full insurance.

In addition, when selling auto insurance, insurance companies will also recommend some additional insurance, such as emergency road service, rental reimbursement, etc.

You need to consider whether or not to buy these, because although these additional insurance is cheap at first glance, there are still many details. You need to compare more, such as road emergency rescue, from a few yuan to dozens of yuan a month, the difference is the distance of the trailer and so on.

7.Emergency Road Service

This auto insurance clause pays for the expenses incurred when the car breaks down and needs to be repaired or towed, or when someone needs to unlock the lock outside the car.

8.Rental reimbursement Coverage

This auto insurance clause covers the cost of renting your own car when it cannot be used due to an accident.

9. Full Safety Glass

This kind of characteristic insurance, can calculate probability, buy insurance cost-effective, still oneself repair cost-effective.

What to Watch Out for with Online Car Insurance Quotes

The main thing to watch out for when buying car insurance online is understanding what each coverage option is and resisting the temptation to just buy the cheapest possible insurance. There’s a difference between having an affordable, competitively priced car insurance policy with simply having the cheapest policy possible. 

Oftentimes, the cheapest insurance will mean buying only the state minimum liability limits with no other types of coverage. Or having both collision and comprehensive coverage on your policy is expensive, you might be tempted to save money elsewhere, such as on your liability coverage. 

Buying the state minimum liability limits can be very risky because it simply doesn’t cover you for much money if you’re responsible for an accident. 

If you cause an accident and your insurance limits aren’t high enough to cover the other person’s injuries (or lawsuit costs if there’s a death involved), then you’ll be responsible for paying the rest of the money out of your own pocket. And if you don’t have that money laying around, your other assets could be taken, including your house, car, and a portion of your future earnings. 

How Can I Get Car Insurance Discounts?

Most insurance companies offer more discounts on car insurance than any other type of insurance. Each company offers slightly different discounts, but some of the most common ones include:

  • Multi-policy: Almost every insurance company offers a multi-policy discount, which knocks off 10% to 20% when you bundle your car insurance with a homeowners or renters policy. 
  • Multi-vehicle: If you have more than one vehicle on your policy, you’ll likely receive this discount, which makes each vehicle in a household slightly less expensive to insure than it would be if it was the only car on the policy. 
  • Vehicle safety features: Most new vehicles have advanced safety features, such as passive or active restraints and blind spot monitoring. Each vehicle that has these is eligible for these discounts. 
  • Safe driving record: Insurance companies like to minimize risk, and having a safe driving record is a big indicator that you’re likely to keep your driving record clean. Companies typically look back between three and five years at your record, but this can be one of the larger discounts available. 
  • Good student discount: Having teen or early 20s drivers on your policy can have a dramatic impact on your rates. To help offset part of this, your child could receive a good student discount if they earned at least a B average last semester. 
  • Defensive driving course: Anyone is eligible for a defensive driving discount, but this can be particularly attractive to people who don’t qualify for a safe driving discount. Enroll and complete an approved online defensive driving course and receive a discount. 
  • Telematics: Not every insurer offers this, but enrolling in your company’s telematics program could save you extra money. Telematics is the program that tracks certain aspects of your driving for a period of months and gives you a discount based on how you drive. 

There are usually many more discounts available, such as paying for your policy in full, enrolling in automatic payments, quoting well ahead of time, going paperless, etc. Be sure to talk with an independent insurance agent to find out which discounts you qualify for.