Reader’s Question:

What do I need to consider when purchasing car insurance?

Jim

Arlington, VA

Car insurance coverage needs differ depending on your situation.

Always consider your financial and personal situation (marriage, home-buying, parenthood, etc.) to know appropriate liability limits. The more you have to lose, the more protection you will need. To lower your car insurance rate premiumraise your deductibles, .

Go through the checklist and read our articles to get more tips:

• What coverage does the law require you to buy?
• What coverage does your lienholder or bank require you to buy?
• Understanding on how a loss will be paid for each auto insurance coverage.
• Understanding the various options for each coverage (limits,exclusions and deductibles).
• Think about value because best auto insurance may not be the cheapest.

Tags: auto insurance premium, automobile, car insurance rate, cheap auto insurance

Reader’s Question:

I live at 38104 Memphis, Tennessee and I currently have 2 car insurance policies. If I move to another address in TN, will I get cheaper car insurance rate quote? I appreciate your help.

Dana

Memphis TN

Are you planning to leave sooner? I just moved out too and it was more than a handful!

For most car insurance companies in Memphis that own a website, online transactions would also be possible. Most sites would require you to plug in your zip code on a relevant space like the one you see on this page. You will then be routed to a rates comparison chart for car insurers in Tennessee.

This is very relevant and helpful for you since you will get to compare rates without having to hop from one insurer to another in Memphis. Most database online though will not give exact address rates comparison as rates are generally clustered per zip code.

I encourage you to try comparing right now by entering your zip in this page and try to see if you will get cheaper insurance rates for the address you are planning to move to in TN. What matters here is for you to get a good quotes databank so you can choose your insurer in Memphis, TN well.

Enjoy shopping online for cheap car insurance quote in TN!

Tags: auto insurance online, car insurance quotes, car insurance rate

Reader’s Question:

Is it harder to insure SUV’s?

Kyle

New York, NY

Thanks for asking, Kyle.

If you have one, then this might come as bad news to you. SUVs are magnets for high insurance rates! That’s an added burden to having a higher ticket price at dealership and costing a mint to fill up. SUVs cost 10-20% more to insure as compared to regular cars.
Want to know the reason why? It’s really because more often, SUVs can cause more damage to other vehicles during accidents. Such will cause the payout rates for the insurance companies which will definitely increase liability premiums.

Regardless if you are a safe and careful driver, SUVs will have fared much better than their counterparts in most accidents. SUVs feel safer, though it doesn’t really follow that it is safer. About 12% of vehicles on US roads are SUVs because of this. Even if, SUVs can also pose some inherent dangers which include hazards such as greater potential to flip during high-speed turns, collisions, or when avoiding accidents. The center of gravity for SUVs is less balanced which makes them top-heavy since they sit higher off the ground. Roll over accidents are very costly in terms of vehicle repairs and personal medical expense which make them charge higher for SUV auto insurance premiums.

Aside from that, car thieves mostly covet for SUVs which can be very costly for replacement claims! In other words, SUVs are high-risk vehicles for auto insurance companies which will lead them to charge car insurance premiums higher than the other car types.

Reader’s Question:

My son’s dad and I are divorced, and his father gave his old vehicle to our son. When my son starts driving and if he insures the vehicle, do I need to include him on my policy? We live in Delaware.

Jane

Wilmington, DE

Ultimately, you will need to speak to your insurance provider in Delaware. Generally, most insurance providers want to know who resides in your household. From there most insurance providers will want you to either list that individual as either ‘eligible’ to operate a vehicle or ‘excluded’ from driving. Anyone listed on your policy as ‘eligible’ to drive, will be covered by your insurance carrier to drive the car(s) on your policy. If that individual is specifically ‘excluded,’ your insurance carrier will not provide coverage to that individual if s/he drives your car(s) listed on your policy. If you ‘exclude’ your son from driving your car(s) on your insurance policy, your insurance provider may require you provide proof your son has his own policy in force.

Reader’s Question:

I bought a vehicle in my name, and I need a car insurance for it. My license has been revoked. Can I still insure my vehicle in someone else’s name? Or, can I insure it under my name? I live in Florida.

Remy

Cape Coral, FL

Even though your driver’s license is revoked, few insurance providers will permit you to insure your car in Florida.

I know some insurance companies that will allow it, but they will require you to provide them proof of it’s reinstatement within thirty days from your policy’s inception date. Or, they will terminate your insurance policy.

There are also insurance providers that will permit someone else to insure your car in their name, even if that person has no insurable interest in your car. Those insurers are limited and they do require the car owner to be added as a motorist on the policy. Under certain circumstances you can be added on the policy, but you would be excluded and not covered under the insurance policy terms. You will have to call for underwriter authorization.

Reader’s Question:

Is insurance cheaper on a 5 speed manual or automatic transmission?

Paul

Portland, Maine (ME)

It will really depend upon the type of vehicle and rating system of an insurer however in general a 5 speed vehicle is cheaper to purchase than an automatic vehicle, and therefore it will normally cost less to insure for that fact.

Any part of a liability insurance rate that uses the car in the factoring, would take into account the number of occurrences, but the transmission type is not a factor. Any portion of the physical damage (comprehensive and collision coverages) insurance rate would use the value, but it does not look at the fact that the car is an automatic or 5-speed car.

One example is this: The Corvette and Porsche would be more to insure not because of the manual transmission but due to the sports car classification. Plus, high end sports car come with much higher repair costs than the Camry.

Reader’s Question:

In Kentucky what is the fine for driving without car insurance?

Jean

Louisville, KY

The penalties for driving without car insurance in Kentucky can be rather severe. For a first offense you are cited, you will be required to go to court and can be fined between $500 - $1000 or go to jail for not more than 90 days or both.

Your Kentucky vehicle registration and license plates can be suspended for a year or until proof of car insurance is provided. You may also lose your license for up to one year. For each subsequent offense of not having proper proof of car insurance the penalties increase.

If you were found with driving without car insurance in the state of Kentucky you may contact the court listed on your citation for more information on the possible fees and penalties you may receive in court. The clerk of the court can likely inform you what the normal fine amount is for a first time offense of being uninsured motorist in the county in which you were cited.

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.

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.

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.