Car insurance in EU and US – what's different?

Car insurance isn't something that only American car owners have to deal with. In many countries car insurance is also mandatory and you will be regarded as a legal offender in case you're caught driving without car insurance. Many people tend to compare the US and EU car insurance markets as there certain specifics that drivers from each area observe when trying to get insurance in the other area. So let's take a look at these differences and try to avoid falling short of insurance when we may actually need it.

But let's first see what is similar between the EU and US car insurance markets. On both sides of the Atlantic you will be required to carry third party liability coverage as a mandatory part of your policy. The name of this coverage may vary depending on the state\country but the general purpose is all the same – paying to the other party involved in the accident if you have caused it. And just like there are different amounts of minimal coverage to be carried by the policy across different US state so there are different requirements among various EU member states. So it's really important where you buy your policy and where your car is registered. Besides, in EU states the difference between car insurance rates and car prices in general may differ significantly because these are separate markets each with its local regulations despite the border union policy that is EU. As for the optional types of coverage they are comparable between the two major markets and tend to differ just as they differ across different insurance providers.

Another major difference between the EU and the US car insurance is the price formation of the policies. Due to the non-discriminatory regulation the EU officials have adopted not that long ago the pricing for car insurance common for the US will be regarded as discriminatory especially when it comes to gender of the driver. For example, everyone knows that in the US female drivers pay lower rates for the same policies as men because there are less women on the road and they tend to produce less accidents. In the EU this is no longer acceptable as it is a form of discrimination. As a result men and women tend to pay the same rates that are mainly based on the car factors. So keep this in mind when buying car insurance in European states.

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