Car Insurance USA - UK no claims bonus

OKL_2

Hi experts - please can you help? I am about to relocate to Florida for 3 years and wondered if there was any way or any company who will recognise my full UK no claims bonus (>10 years) as from what i have researched this is unusual in the USA. Any assistance appreciated. Thanks!

dacouch

The times I have arranged Insurance for clients in the U.S they do take into account no claims bonus, they rate on the area, your age, the car and oddly the car emmissions.

If I were you I would not cancel my UK car Insurance immediately, let it run for say another month after you move to the U.S.A. The reason I say this is most UK companies will only accept no claims bonus for up to two years from when sits cancelled / lapsed. There are a few that will accept it for up to three years (Three years in total). So if you allow an overlap you can ensure there will be time for you to get back to the UK, buy a car and arrange insurance and it be within the three years.

Make sure you ask for written confirmation of your no claims bonus from your UK Insurer, it will be worth also asking the U.S company to confirm you had no claims whilst driving with them as well

OKL_2

Dacouch, Thanks for the advice. I am very interested in your opening line! Are you an insurance broker? If not can you recommend these US insurance companies who do take into account UK no claim bonus as i understood they were few and far between? Again appreciate the advice and if any other experts would like to contribute I would appreciate it. Thanks

dacouch

I have only done it as a favour for certain clients in the past, try googling "Insurance Agents + (Whatever State you are moving to)".

I would suggest you also google the "(The state name you are moving to) + Insurance Minimum" As this will tell you the minimum levels of third party cover they require in your state. I would strongly recommend you pay to increase these as they are very low.

Here is the current state minimum for Texas (Razkazz et all will find this highly amusing compared to the UKs minimum which is £Unlimited for injury and £5m for property (Although most companies give £20m for property and a few still give unlimited)
http://www.tdi.state.tx.us/news/2008/news200846.html

I'll pm FH Brit and ask him to give you some advice as he is an ex pat that lives in Florida and is a regular poster on MSE. He may be able to give you more informed advice than I can and may be knows a company that accept no claims bonus

FH_Brit

Hey OKL - Insurance here can be a pain but when I moved here Jan 2001 the regular price insurance was over 50% cheaper than what I paid in UK with max NCD!!!! And my company would not honour NCD from UK either!

You'll also have to take a driving test, they don't accept UK either. You can only drive here for 30 days as a visitor. And not all driving license offices will do non-citizens. Also be carefull when buying a car, it is taxable even if it's private sale. The reg docs have a space for the seller to put the sale price & when you go to get your tag (numer plate), they'll charge you the tax on the sale.

State Farm (Iinsure with) Geico, Progressive are 3 bigger companies and motor insurance here is FAR better than in the UK. My neighbour had someone pull out in front of her (t-bone accident) last Wednesday in Orlando - The insurance company gave her cheque (property loss - the car - no medical) FRIDAY! Florida is whats called a no-fault state and that speeds up claims a great deal. My wife and I were rear-ended at a red light and totalled the wife's car = less than a week to settle.

I would suggest getting "No/Under Insurance" as an extra. In our accident My med bills were over $8,000.00 and the guy who hit us had a $10k limit - with my State Farm extra cover we had all med bills paid and $31k compensation.

Progressive.com alledges that they "compare" their prices with other companies but you'll have to know your zip code and car type.

FH_Brit

sorry more .......

My policy covers my visitors (brothers from UK) without charge when they come over to "visit" as they put it (cheap holiday I call it!).

I pay no more for motorcycle - they look at it that I can only drive one vehicle at a time.

I am insured for any vehicle - they dont have TPFT or TP only - you're insured or you're illegal.

I do get multi policy discounts (best way to save) home insurance, wife's car, Underinsured cover, & my tractor. I got free life insurance too (small but it'll pay something).

Where are you going to settle? Buying house or renting?

Anything else you need - just ask.

C.

p.s. Bring me some Tea, Walkers Crisps and Fruit Pastilles

dacouch

Thanks FH Brit, it was Progressive I have used before.

Can you humour us and explain what Florida being a "No Fault" State means and what is under insurance cover?

Also as you have probably noticed fees from Insurers for adjusting your policy eg changing your address are a hot topic over here, do the yank companies charge adjustment fees?

FH_Brit

NO FAULT - in the event of an accident, initially no one is held to blame. Example (and I know it not always the case) if you rear end someone in the UK, usually the person at the back is at fault and everyone in front claims of the back person's insurance. Here, YOUR insurance will pay out almost immediately, and up to a certain limit there is no fighting between insurers as to who was at fault for the crash until the $$$ amount of the loss exceeds the limit on the policy.

After the dollar amount is reached (dependent on your policy - and there is a legal minimum on every policy) then, and only then will the insurers start arguing and claiming from each other or claimin in the courts. This means that you are "back on the road" very quickly in the vast majority of accidents. A check for the property loss (not medical bills) can be within days of an accident so that you can arrange for a replacement vehicle as soon as possible (and saves the IC money as most policies will cover a rental vehicle while your claim is being processed).

On medical side a legal minimum of PIP (Personal Injury Protection) is also carried by law (you can voluntarily increase the cover at a higher premium) of $10,000.00. That means that your own medical bills are paid under your policy (so you don't have to wait for treatment) at the rate of 80% up to 10k. i.e. If you incurr $10k in medical bills, YOUR policy will pay $8k and the $2k left can be placed with other insurance (health ins, travel ins, or claim from guilty party or their insurance company) or you can pay the $2k yourself. This is a legal minimum on all policies including hire cars (for you tourists). You can also take out (at extra cost) no/underinsurerd cover that increses the benefits if the other driver is without/under insured.

Uninsured/underinsured is our version of third party/TPFT - you are (here) insured or not - the difference in cover is in a dollar amount so you can insure you/your vehicle for say, a $10k limit, and if you hit and total a Rolls Royce, your insurance will only give $10k maximum and the balance if the loss exceeds $10k is up to you, then as you were insufficiently covered the owner of the Rolls will "come after you" for the remainder of his loss - similar to how it regularly happens in the UK.

Your second question about adjustments I can only comment on my personal experience (and I have only ever been with State Farm) they do not charge for stuff like that. They also (for me) cover at no cost any family visitors from the UK (2 week holiday etc) as the policy covers your car and you as a driver of any vehicle.

On other Florida points -

No vehicle testing - MoT's.

Tag (similar to Road Tax) costs about £30 per year (but under review - may even have already gone up) and it expires on your birthday - no reminder needed and no excuse that "you did not know when it expires"!

Petrol (today's price) $2.50 per US gallon (3.8 litres) = £0.40 per litre ($1.62 = £1) === there is still 3 grades of Gas (remember 2,3 & 4 star petrol if you are as old as me!) some gas companies have 5 grades.

dacouch

Thanks for the info.

It sounds like the yanks have some better ideas on paying claims out immediately irrespective of blame, I'm not sure the £10000 third party damage limit would go down well here though. The no fees for adjustments would definately go down well with the public over here.

Its interesting that the prices are less

OKL_2

Dear FH Brit, Thank you so much for this marvellous information, I really appreciate it. I will be moving to the Lakeland area and as a family of 5 every piece of information is important to me. It is likely we will buy a property as I want to give some guarantee of permanence to my children for the duration, it's a big upheaval for them at a young age and I want to get into a good school area and stay there! I have begun to make some inquiries into opening a bank account so I can get my hard earned UK credit history into a meaningful US one. Any other advice much appreciated and thanks to Dacouch for putting us in contact. Tea, Walkers and pastilles, you're on. I have warned family marmite in volume is the entry ticket!

FH_Brit

OKL - The best way to get your credit is to get your bank account - passport & visa or SSN (social security number) to any bank and they'll open it - and to buy a car and register it in your name - your "Beacon Score" (credit rating will start at near perfect).

A little secret Tea, Marmite, McVities Biccies, Cadbury's, Heinz Beans (DON'T try the Heinz American "Vegitarian Beans" = they aint right!) ,Bisto etc are readily available in Publiz suermarkets here but you'll pay. There is also a very good UK shop near Universal Studios and the International Food Club just round the corner from them.
Aything else you need just ask, I'm very cheap, you can buy me a beer when you are stateside!

C.