FRIDAY, MAY 25, 2012
We're all pretty familiar with the auto insurance system here in the U.S., but many other countries around the globe also offer their own variations on auto insurance policy. Some mirror many of the laws here in the U.S., but others take wildly different paths when it comes to insuring their motorists. Here are a few interesting insurance facts from around the world.
If you ever find yourself moving to Canada, you'll encounter a system pretty similar to that of the U.S. Canadian auto insurance companies determine rates by driver's age, location, car type, driving experience, record and how a car is used. However, one major difference is that - like its healthcare system - Canada employs a public auto insurance system that is managed by each province. The rest of the country supples private insurance policies. Other countries are not quite as simlar. In fact, while auto insurance rates are generally a bit more stable in the U.S., the same cannot be said for policies overseas.
Theautoinsurance.com reports that auto insurance premiums in Ireland can rise by as much as $1,000 per year due to looser regulations. Sometimes, it doesn't even matter if your policy remains exactly the same year to year, your rates could still go up in Ireland. At the same time, Ireland's drivers can exempt themselves from insurance requirements if they submit a large sum of money to the country's High Court.
In Indonesia, drivers adhere to a much different model when it comes to auto insurance. Drivers are required to register their vehicles with the government, and their registration fee includes a third-party auto insurance policy. The registration cost usually amounts to 10 percent of their vehicle's value, said the website.
Australia follows a similar model, folding the costs of vehicle registration, an inspection, third party liability inurance and personal property coverage into an annual payment, which can total about $1,000 per year in American dollars.
South Africa doesn't actually use an auto insurance system as we know it, but rather allocates a portion of gasoline profits and puts it into a Road Accidents Fund. Drivers' accidents and claims are paid through that fund, so individual motorists don't have to purchase and auto insurance policy.
Posted 1:52 PM
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