Car Insurance Policy
Reader’s Question:
Is it true that every individual with a valid Driver’s License will automatically be covered with some sort of auto insurance?
Sam
Minneapolis, MN
To be covered by a auto insurance, a person must buy a car insurance policy through a licensed insurance company or be added to an existing auto insurance policy. In most states you need to show proof of insurance to obtain a license, while in some states you need at least the minimum state required insurance to register your car.
Insurance companies’ guidelines and state laws can differ but we know of no situation where by just getting a valid driver’s license you are automatically covered by auto insurance.
If you live in a household that already has auto insurance on cars, you might be covered under that insurance policy once you have received a driver’s license, but in some cases the policyholder would need to let their insurance company know and add you to the policy in order for you to be covered properly by the car insurance policy.
Auto Insurance Rates
Reader’s Question;
I am just wondering if parking ticket affect insurance rates as well?
Brad
Louisville, KY
A parking ticket may or may not affect your car insurance rates depending on how your specific insurance provider assigns points to such violations. There are insurance carriers that will not increase rates because of a single parking ticket however if there are multiple ones or unpaid tickets that lead to a driver’s license suspension your rates would generally be affected.
You should contact your insurance carrier regarding their rating system with your insurance agent or you can contact your state’s insurance regulatory body and check about your company’s rates that are filed with them.
Car Insurance South Carolina Quote
Reader’s Question:
Do I need to buy an insurance before I purchase a used vehicle in South Carolina?
Samuel
Columbia, SC
If this is your first car in South Carolina then you need to obtain auto insurance before taking over the ownership of a used car in most states. If you already have car insurance and are replacing a car on your current insurance policy then the coverage might insure your “new” used automobile for a couple of days. You will need to contact your state’s DMV and insurance company though to verify.
Before buying a new or used car in South Carolina, contact your insurance carrier to let them know about the vehicle you might buy. They should be able to provide you a quote of what it will cost to add the car to your insurance policy, which can assist you budget for your auto purchase. Your insurance carrier can then let you know when you should contact and add the car so it will be covered.
Cheap Auto Insurance
Reader’s Question:
What vehicles are the best for cheap insurance rates? I never got involved in car accidents, no tickets and I am a safe driver.
Albert
Fort Wayne, Indiana (IN)
In general, the less expensive a car is to purchase, the less expensive it is to insure. Additionally, domestic makes are usually less expensive to insure than foreign makes.
Other than factors like your zip code , your own driving record and the demographics of the motorist in your household, the make and model of your vehicle can have an effect on your insurance rate.
Collision-damage costs are one of the major factors in determining the cost of insuring one type of vehicle over another. You will also want to find out how attractive the car is to thieves.
Typically, cars that are the most expensive to insure tend to be either high high dollar, horsepower or expensive to repair. Higher horsepower autos are statistically favored by risky motorists that will likely drive the vehicles faster and get into more accidents. That will make insurance rates up for those who own a similar vehicle.
Car Insurance Help
Reader’s Question:
If want to learn to drive but do not own your own car, do you still need an insurance?
Olive
Jersey City, NJ
Many states will require you be insured first if you going to be driving – even if you are just learning to operate a vehicle. Now, you can be listed on someone else’s policy as an additional driver for that insured’s vehicle. Additionally, if you want car insurance, but do not own a vehicle, you may want to buy a ‘non-owner’ policy. This policy will provide coverage for liability, medical payments, and uninsured motorist coverages for an individual who does not own a vehicle and will be operating a vehicle owned by ssomebody else.
Car Insurance On Stolen Vehicle
Reader’s Question:
Do I have to keep insurance on my vehicle which was recently stolen?
Feline
Newark, NJ
I would suggest that you speak to your insurance agent to determine how long you will need to keep the insurance on your car that was recently stolen. If you have comprehensive coverage which you are putting in a claim for your stolen car, typically, you would want to keep your car insurance policy in effect until the settlement is complete.
It could be that your vehicle will be recovered before your settlement is finalized and your car will come back to you. If this does happen you will want auto insurance to still be covering it so that you do not have a lapse in insurance for the car.
If you continue to pay insurance on the car and it is not recovered, this might result in an overpayment of your insurance premium. If this happens, discuss the issue of a refund with your insurance carrier.