When To Carry Collision And Comprehensive Insurance Coverage
Reader’s Question:
My vehicle is one a half year old. I would like to know if I still need to carry collision and comprehensive?
Tammy
Detroit MI
Collision and comprehensive insurance coverage is an optional coverage in every state. This type of coverage are usually required if you are paying off your car from a lienholder.
Collision coverage in your policy provides coverage to your own car resulting from collisions to another car or object. Comprehensive coverage covers your car due to variety of other causes such as fire, falling objects, flood or theft. However, the value of your car plays a big part in determining your need for this type of coverage. Since you have a one a a half old car you should get Comprehensive and Collision coverage on it.
It is more economical to pass on the risk of your new car to the car insurance provider. Basically, it would cost less to get car insurance for your vehicle than it would to have to replace it out of your own pocket. If you are leasing the car then you are required to get Comprehensive and Collision coverage on your car. The lienholder will require that you show proof of this coverage. If you do not provide them proof that you have this type of insurance then they would force place the collision and comprehensive for you and add the cost of it to your loan balance.
What Property Damage Does My Car Insurance Cover
Reader’s Question:
My husband accidentally ran over a neighbor’s fence here in Tulsa, Oklahoma, and they are now asking us to pay for the damage cost. Will this be covered by our auto insurance?
Emma
Tulsa, OK
For as long as the total costs of repairing your neighbor’s damaged fence does not go beyond $25,000, it should be covered by your husband’s vehicle insurance. Whatever auto insurance your husband may have gotten for his vehicle, it’s pretty certain that he would have property damage liability of at least $25,000 since this is one of the minimum auto insurance requirements for vehicle registration in Tulsa, Oklahoma. This means that the cost of repairs and replacements for any property damage incurred from a vehicular accident where your husband was at fault will be covered for by his insurance company, with a maximum limit of $25,000.
In case the costs of the damage go beyond that, you will need to check your husband’s auto insurance policy to verify the maximum limit of his property damage liability. Property damage liability, however, does not cover any property damage that may have been done to your husband’s car due to his own negligence. It only provides insurance coverage for your husband’s financial liability to another person due to property damages caused by an accident where your husband was at fault. There is also a possibility that after the damage has been properly covered by your husband’s insurance company, his premium payments for the insurance policy may increase shortly after the accident.
Auto Insurance Claim in California For Hit And Run Accident
Reader’s Question:
I am from Laguna Niguel, California. I usually parked my car on the road that is in front of my house. However, just yesterday it was hit. I am confused on what type of auto insurance coverage would pay for the damage on the car. Is this kind of accident be covered by my uninsured motorist coverage or not?
Elisa
Laguna Niguel, CA
I am sorry to hear that Elisa. I hope there was not too much damage on your car.
Going back to your question, from what I know, this kind of auto insurance claims would fall under comprehensive policy. This policy pays for damages made on your vehicle that resulted from non-related collision accident like for example fire, windstorm, theft, hail, etc. On the other hand, uninsured motorist coverage pays for the damage if you got into an accident with another driver who is not insured or does not have sufficient auto insurance.
I would suggest you contact your auto insurance agent as soon as possible to inform your insurer of this accident. Your car insurance company would send its claims adjuster who would determine on the damages made on your car and the loss that would be covered by your insurer.
Auto Insurance For Rental Car With Underage Driver
Reader’s Question:
Can I still rent a car even if I’m under 25? What are the things I need to know? Would it help if I’m under my parent’s car insurance policy here in Oregon?
Janine
Hillsboro, OR
It is possible for people under the age of 25 to rent a vehicle. What you do need to realize though is that car rental companies are very hesitant in allowing under 25 year old drivers to avail of their services and if you are allowed a car rental agreement often this would mean some additional charges and restrictions. Being under your parents car insurance policy might help you get to be able to rent a car provided that the said car insurance policy extends coverage to you, normally as a named driver, and that it allows car insurance coverage to vehicles other than the one listed under the said policy. You should also check to make sure that you get enough comprehensive, collision damage, and liability insurance coverage that will extend to the rental vehicle you will be using.
You may also get additional help and car insurance protection if you use a credit card that offers car accident insurance. Try to find a car rental provider in Hillsboro that will agree to give good student discounts as well if you are performing well, academically. You can talk to your parents auto insurance agent to see if they could provide you a list of car rental services that allows under-twenty fives to rent a vehicle. They may even be kind enough to help you facilitate the whole rental process to your advantage.
Do You Need Rental Car Insurance Coverage Or Not
Reader’s Question:
I’ve never found renting a car enjoyable in the past but I would need to rent a car here in Springfield, Massachusetts for an upcoming business trip. My question, I guess, is if my car insurance company would still cover me even if I’m driving a rental car?
Tyla
Springfield, MA
Your auto insurance provider may still be able to provide adequate coverage for you when you rent a vehicle. In most cases, your comprehensive and collision coverages on your vehicle can also be applied towards your car rental agreement. It is best you speak to you auto insurance company and determine if your policy would include car rental services and up to what extent or limitations can they cover you for in the event you do get involved in a vehicular accident while using the rental car. You would also want to determine if your comprehensive insurance coverage would pay for loss of your belongings or the theft of the rented vehicle itself.
The car rental service there in Massachusetts would also offer you additional coverage in the form of a Loss Damage Waiver (LDW) form. This would be a good idea if your car insurance has very limited or no coverage at all when your driving a rented car. An LDW would basically exempt you from financial obligations in case the rented vehicle is damaged or stolen. This could also avoid you having to be charged the daily car rental rate (known as “loss of use”) if the car cannot be used because it needs repair. If you will be using a credit card to rent the vehicle you may also want to call up your credit card company since most credit cards also provide some form of coverage when you use it to rent a vehicle. You want to know what you have so that you can make sure that you are not paying for any duplicate coverage while still maintaining adequate protection.
Do You Need Collision Damage Waiver Rental Car Insurance
Reader’s Question:
I’m told I still need to purchase a “Collision damage Waiver” since I will be renting a car here in Brookhaven, New York, for about a month or so. What if I already have car Insurance?
Dennis
Brookhaven, NY
Collision Damage Waiver (Also known as Optional Vehicle Protection) is a policy that is sold by a car rental company to their customers who do not have personal auto insurance coverage. Although the agreements you get from each car company may be different, they are required by the state of New York, under its Financial Responsibility laws, to provide sufficient auto insurance coverage towards their vehicles whenever it is rented.
Since you will be renting a car there in Brookhaven for about a month and you already have a personal car insurance policy under your name then you are no longer required to purchase this policy in order to rent a car. You do want to make sure though that your auto insurance policy does have enough comprehensive and collision coverage to pay for any loss or damages to the rented vehicle in case of an accident, which can otherwise be charged to you directly by the car rental service. The price of a Collision Damage Waiver policy usually falls around $12 a day but still depends on the actual cash value of the vehicle being rented.
You may also be interested to know that a lot of credit card companies already provide cardholders with some level of auto coverage if they use the credit card to rent vehicles. This means that you may get additional protection towards your rented vehicle aside from your current car insurance policy.
What Are The Auto Insurance Requirements in Wyoming
Reader’s Question:
I just moved here in Cheyenne. I’d like to know, what are the basic car insurance requirements in Wyoming? Is required to purchase auto insurance here?
Alice
Cheyenne, WY
Yes, you are required to purchase auto insurance in Wyoming. And not having car insurance while driving and getting caught means paying for fine, having your licensed suspended or worst, your car being impounded.
There are different auto insurance requirements in each state. For car insurance industry wide, the recommended coverage for bodily injury is for at least $100,000 for every person and $300,000 for every incident of vehicular accident.
The Wyoming state law requires every driver to obtain car insurance that meets the following qualifications:
For liability coverage, minimum requirement is:
* $25,000 per person for bodily injury;
* $50,000 per accident for bodily injury; and
* $20,000 per accident for property.
There are also different policies that you can avail; depending on what you think is best for you. Liability insurance for example covers bodily injury and damage to property. Medical policy on the other hand only covers medical expenses from vehicular accidents. In addition, comprehensive policy covers damage an insured river’s car from non-vehicular accidents, for example hail, storm fire etc. If you are shopping for auto insurance rates I would suggest using our website to find affordable car insurance rates in Cheyenne, Wyoming.
Is Parent Legally Responsible For Teen Driver on Insurance Policy
Reader’s Question:
I have an 18-year old daughter who has a registered car under her name but still under my car insurance policy. If she is involved in a car accident and she is at-fault and the damages incurred are beyond the limits of my auto insurance policy, will the other party have the legal rights to run after me? I mean, since I am the owner of the car insurance coverage or will they run after my daughter?
Bridget
Arden-Arcade, CA
Insurance laws differ from every state. But since you live in California and you are the policyholder, I would suggest to check with you car insurance agent in Arden-Arcade, CA to clarify the specific details of your car insurance policy. You can also seek legal assistance to further help you with your question.
But just to give you some idea, what I know is that if your daughter is under 18 years old, your parental liability would be more since she is considered as a minor as compared when she reached 18 years of age.
According to parental liability law in California, parents or guardian are to be held responsible for any damages resulting from minor vehicular accident in an event that a minor is involved in such accident. This depends though if said minor’s license was signed by his/her parent or guardian.
Auto Insurance Laws In Hawaii – What You Should Know
Reader’s Question:
My boyfriend will be moving to Honolulu, Hawaii this month. He is a very careful driver and has been maintaining a very clean driving record from the time we’ve met. He’s asking me so many questions about car insurance law in my home state since he would like to keep his clean driving record as it is. I know so little about car insurance here. Can anyone help me?
Jasmine
Honolulu, HI
Hawaii is one of the 13 states which is considered a no-fault state. Meaning, if a person is involved in an accident, regardless of whose fault it is, that person’s auto insurance company automatically pays for the damages incurred depending on the person’s policy limits.
Since your boyfriend will be moving here, his car must be registered, licensed, and insured for him to be able to legally drive his car. In addition, he is required to have a Personal Injury Protection policy on his auto insurance, with minimum required limits of $10,000/ person. This covers him for his own medical expenses incurred from the accident. Also, this usually covers the policyholder’s funeral expenses. Similarly, the policyholder’s relatives living in the same house and other authorized drivers on the policyholder’s car would also be covered.
For additional information, you can check the websites for available auto insurance quotes in Hawaii or ask you car insurance agent.
Do You Need Uninsured Motorist Auto Insurance In Maine
Reader’s Question:
I am looking for different auto insurance policies when I came across uninsured motorist coverage. What is this? Do I really need to have it? I am from Portland, Maine if that will help you more.
Nora
Portland, ME
The uninsured motorist policy is an insurance coverage that pays for property damage and bodily injury in an event that a person is involved in a vehicular accident with another party who has insufficient coverage to pay for damages incurred from the accident.
Now the big question is, is really worthy to purchase this kind of policy? I’ve done some research and let me share some interesting facts about your question.
According to a study conducted by Insurance Research Council, it is estimated that around 15 to 17% of all drivers in the United States are not insured. This is despite laws requiring auto insurance and/or financial responsibility on the vehicles being operated and driven in different states. In another study conducted in 2006 for Uninsured Motorists found the following states as the highest number of uninsured drivers:
1. Mississippi – 26%
2. Alabama – 25%
3. California – 25%
4. New Mexico – 24%
5. Arizona – 22%
However, according to the same study, Maine has the lowest number of uninsured driver with only 4% uninsured driver. Following closely are Vermont (6%), Massachusetts (6%), New York (7%), and Nebraska (8%).
But having the lowest number of uninsured driver in your state does not give you the right not to purchase this policy. Because, having uninsured motorist coverage on your auto insurance policy is mandated by the law in your home state. Ask you auto insurance agent in Portland, Maine for more information about this policy or check the websites so you compare car insurance rates.
Tags: auto insurance, auto insurance quotes, car insurance online, car insurance rate