Reader’s Question:

I live here in Pennsylvania, and I have a teenage son who sometimes drives my car. If he gets into an accident, will he be covered by my car insurance? Damages don’t come cheap.

Anne

Allentown, Pennsylvania

Normally, a car insurance company would ask you to disclose all the members of your household, so they could check who among those can be potential drivers of the vehicle in the near future. In your case, you may not receive coverage for this one since you never disclosed information that is relevant to the insurance carrier. This holds true not only there in Allentown but in different parts of Pennsylvania, as well.

If a member of the household just got a diver’s license (let’s say that member is only a teen), you must notify your car insurance carrier immediately. Otherwise, if that member gets into a vehicular accident while driving you car, you may get into real trouble.

If you are looking for an insurance policy for your teen, you may want to consider a few things in order to get the cheapest and the best deal. First of all, you may try availing a deductible. If you opt to get a higher deductible (between $500 and $1,000), you have better chances of saving 10 to 20% on your premium.

Choosing the right car is also another way of keeping your teen’s car insurance policy lower. A safe car (whether used or brand-new) will always be favored by car insurance companies. Since there is a smaller chance of it being stolen, the car insurance company will have less chances of a payout. This old vehicle could even do better in crash tests than newer versions as old models are sturdier than new ones. However, you may have to consider keeping the vehicle under your name so as to give the insurance company better assurance of financial responsibility.

If you don’t plan to buy a new car, you may assign to your teen one of your cars. Try picking the less expensive one because this will also make the premium lower. However, make sure that the car assigned to your teen is the one he or she will be driving regularly to ensure that he or she is covered by the right car insurance plan.

Tags: cheap auto insurance, teen, teen insurance

Reader’s Question:

I am using my father’s car in Ohio. The vehicle is insured and I am under my father’s auto insurance policy. Am I allowed to rent a car? Will his auto insurance cover me while I’m driving a rented car?

Jonathan

Lakewood, OH

Yes, you are allowed to rent a car in Ohio even if you have your dad’s car and are under his car insurance policy.

Now regarding your question about being covered by your dad’s auto insurance policy, you need to ask that to your father’s auto insurance agent. Take this as an example. Let’s say your father has collision and comprehensive coverage on his own vehicle. Those coverages may be or may not be extended to the vehicle you will be renting because that depends on the terms and conditions that is under your father’s car insurance policy.

Now, let’s take another scenario, given that your father’s car insurance company covers you while using a rented car, you must remember that your father’s insurer will only cover for the repair of the rented vehicle. You may be asked to pay for the loss of income for the car rental company from your own pockets.

If you are planning to rent a vehicle, don’t do that yet without consulting with your dad’s car insurance agent in Ohio. Be ready to ask all questions you have in mind about your car insurance coverage.

If you carry comprehensive and collision insurance on your own vehicle, your company may or may not extend that coverage to a rental car. However, even if they do cover the rental car, they would only pay for the cost to repair or replace. They would not cover the loss of income to the rental company for which you may be liable. Some companies now offer optional rental car coverage as an endorsement to your personal auto policy, even if you do not carry comprehensive or collision coverage on your policy. You should check with your agent or company to see what coverage you have or is available to you.

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

Reader’s Question:

My boyfriend has the worst driving record in New Jersey. There were so many traffic violations, tickets, citations etc under his name. Just name it he almost got everything under his driving record. And because of this, as expected, we were not able to purchase car insurance through voluntary market. So we purchased his car insurance through assigned risk market. We’ve been under the said market for three years now. And it’s an expensive plan if I may add. Now, what we would like to know is how do we get out of this market? We would like to be considered for voluntary market to avoid paying so much on his auto insurance.

Teresa

Jersey City, NJ

I’m sorry to hear that Teresa. But I got good news for you! According to the New Jersey Department of Banking and Insurance, every year if a person renews his/her policy or whenever a new policy is purchased, the auto insurance company will review a person’s driving record. This covers the three-year period prior to the renewal or buying of the car insurance policy.

In addition, auto insurance eligibility points are removed after the three-year period. So, traffic violations or vehicular accidents that were given insurance eligibility points by auto insurance companies are no longer included on the driver’s record provided that it falls out the three-year look back period. So, assuming that your boyfriend’s total insurance eligibility points for the last three years is less than seven points, then he may be eligible to purchase auto insurance from voluntary market again.

For more information about auto insurance in New Jersey, you can also contact your car insurance agent and even the New Jersey Department of Banking and Insurance.

Tags: auto insurance, car insurance online, car insurance tips

Reader’s Question:

I have a cousin who is lives in California. He got a traffic violation before and was allowed to enroll in a defensive class to remove the ticket from his record. However, just last week he had a traffic violation again, this time for illegal left turn. We both know he can no longer enroll in a defensive class to have the ticket removed from his record. How would his traffic violation affect his car insurance rate now? Will it increase so much?

Althea

Buena Park, CA

Whether there would be an increase on your cousin’s auto insurance rate or none still depends to his car insurance company. This is because every car insurance company differs from each other. Car insurance companies follow certain rules and guidelines which may not be followed and applicable to another auto insurance company.

Let’s take a look at what happened to my cousin. She had a clean driving record, no claims at all to her insurance company. The very first time she had a traffic violation, she was cited for parking near a fire hydrant. It was deemed as a minor offense by her auto insurance company so she was “forgiven”. There was no increase on her car insurance rate.

Let’s just hope that your car insurance company would “forgive” your cousin and would not take any action about it. However, if there was so much increase on his auto insurance premium because of his citation then I would say it would be better to consider shopping for auto insurance quotes in California by using the websites. Also, to better help you with your question, it’s better to ask your car insurance agent.

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

Reader’s Question:

I am from New York. I have a NY license and also have a vehicle insured here. When I went to New Jersey to visit my mom, I was charged of DWI. How is this going to affect my auto insurance rate in New York? Will it have a negative impact? I am assuming there is none since it’s an out-of-state violation. Help please?

Bernard

Bronx, NY

Unfortunately there is an effect on your auto insurance rate and it’s big time!

Being convicted of Driving while Intoxicated (DWI) in another state (and in your case in New Jersey) doesn’t mean you can easily get away with it. We have what we call the Driver’s License Compact (DLC). Both your home state New York and New Jersey are members of it. This compact allows its member states to exchange information regarding a person’s suspension or traffic violations. Also, an out-of-state violation would be treated the same way it happened in a person’s home state. Meaning to say, you having cited for DWI in New Jersey would be treated as if you were cited for DWI in New York.

Your charged for DWI would be placed on your record and your car insurance company would find out about it. This is a serious offense if I may add. And having DWI under your name would normally increase your auto insurance premium since you are now considered to be a high risk driver.

You can ask your car insurance agent in New York to give you an estimate on how much increase you would see on your auto insurance premium. If you got too much increase then you can shop for auto insurance quotes using the websites.

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

Reader’s Question:

My cousin got involved in a vehicular accident last month. It is not her fault. There was no serious physical damage on her part and she just sustained minor injuries. However, there was so much damaged on her car. What I am curious about, is there a certain grace period for filing for auto insurance claim in Florida? I mean since this happened like a month ago, can my cousin still file for a claim? For how long are we given the grace period before we lose our right to file for claims?

Christine

Central Pasco, FL

In general, auto insurance polices statethat in an event of vehicular accidents or loss to the policyholder, a claim must be done the soonest the possible time. By doing this, your car insurance claim would be considered in a timely manner by your insurer. The longer period you failed to file for the claim, the more difficult it would be to set the facts relating to your claims. In addition, if you filed for a delayed claim you must be prepared to explain to your car insurance company the reason for the delay. A claim adjuster would determine the total loss you had and the coverage you would have.

As to your question, your cousin can still file for a claim. As per Florida law, you could file for a claim within the four year period. Meaning to say four years from the time the accident happened. However, I would not suggest you wait that long before making the claim. Once involved in an accident, file the claim as soon as possible to avoid any future problems you might encounter if you opted to delay it.

For more information about car insurance claims in Florida, ask your auto insurance agent.

Tags: auto insurance, car insurance claims, car insurance online, car insurance tips

Reader’s Question:

I went to Texas for a short vacation and unfortunately I was cited for over speeding. Will this affect my auto insurance rate in Minnesota? Will my car insurance premium increase? Because I heard from a friend that out-of-state moving violations are not counted in Minnesota, so this will not affect my insurance rate in any way. Is that correct? I was also told that all I need to do is to pay the fine and that’s it! No record of the traffic violation would ever show up on my driving record in Minnesota. If that is the case, then I guess I don’t have to worry if this will increase my car insurance rate or not. Correct me if I’m wrong please?

Tessa

Eden Prairie, MN

Well, I think you were advised wrongly.

Both the states of Texas and Minnesota are members of the Drivers License Compact (DLC) which means your out-of-state violation in Texas would be reported back to your home state in Minnesota. Thus, saying that your traffic violation in Texas does not count in Minnesota is definitely not true.

In addition, under this compact, out-of-state traffic violations would be taken as if it happens in the violator’s home state. Hence, out-of-state offenses will be treated in accordance with your home state laws.

As to your question if this will affect your auto insurance premium, normally it would. You might see an increase on your car insurance premium since said out-of-state offense would still show upon your driving record. However, this still depends on your insurer. If you see an increase, then you could check the websites for auto insurance quotes in Minnesota.

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

Reader’s Question:

I’m Scott of Boston. I want to know what my options are if I can’t find an auto insurance that would cover me.

Scott

Boston, MA

Scott, you did not mention why you are having a hard time finding an auto insurance company. There’s nothing much in your question. Now, I can think of several reasons why auto insurance companies won’t insure you.

Your driving history may be peppered with traffic violations and claims. That’s usually the reason why people are refused coverage by auto insurance companies. Or you may be driving a high-performance car. That would give you a hard time finding auto insurance coverage, you’re driving a high risk vehicle. Perhaps you’re a teenager with a short or no driving history at all. Or your neighborhood where you live in might be a notorious haven for car thieves and vandals.

What you can do is you can go to the state insurance department in Massachusetts and inquire about state assigned risk pool. If you join a state assigned risk pool, you will surely be insured as this state program makes sure that the “non-insurables” in the area are given auto insurance coverage by auto insurance companies. Of course, since you are already part of a branded group, a group of motorists who find it hard to be insured, your auto insurance premium will be high.

Another option would be to look for policies offered by auto insurance companies specializing in “high-risk drivers.” These particular auto insurance companies offer non standard auto insurance to motorists who find it hard to have auto insurance coverage. They provide auto insurance coverage to people with bad driving records, with high powered vehicles or those in “high-risk” neighborhoods. Again, the auto insurance premium will be higher than usual.

To get a list of these auto insurance companies offering non standard coverage, you may contact a local auto insurance agent there in Massachusetts. Going online will also give you a lot of good options.

Tags: auto insurance online, high risk insurance, teen insurance

Reader’s Question:

My boyfriend’s auto insurance policy is not renewed by his former car insurance company in Arizona. Now, we’re having so much difficulty finding a new car insurance company who is willing to insure him. He has a very bad driving record I must admit. And I think that is the reason why no one wants to insure him. We’ve tried several ways to purchase car insurance from online to seeking help of auto insurance agent but to no avail. We’re still not going anywhere. What other options do we have if this is the case?

Gwen

Tempe, AZ

I’m sorry to hear that Gwen. But don’t worry so much you still got one more option if this is the case.

Your boyfriend can still be insured through Arizona Automobile Insurance Plan. This plan is created to help drivers who have difficulty purchasing auto insurance policy from traditional ways like what you’ve done. You can apply for this plan through your auto insurance agent in Arizona. Inform your car insurance agent as soon as possible that you are interested to avail this car insurance plan.

If you have additional information about Arizona Automobile Insurance Plan you can write to:

Western Association of Automobile Insurance Plans,
P.O. Box 7917
San Francisco, CA 94120-7917

You can also call 1-800-227-4659. They also have a website that you could visit at http://www.aipso.com/AZ/.

Tags: auto insurance, car insurance online, car insurance tips

Reader’s Question:

Last week, my boyfriend was involved in a vehicular accident. It was just a minor accident and it was not his fault. The other driver begged not to report said incident to the police so they agreed not to. My boyfriend was paid for the damage. Now my question is, what if my boyfriend is involved in another car accident let’s say this time with a person who has no auto insurance and it is not my boyfriend’s fault. Does the property damage coverage on my boyfriend’s auto insurance policy pay for the damage on his vehicle? We are from Arizona by the way.

Mae

Scottsdale, AZ

It’s nice to hear that you’re boyfriend got involved in just a minor accident. I do hope he’s well.

As to your question, unfortunately the answer is no. Let me first define what property damage coverage is. This type of coverage only protects your boyfriend in a way that it only pays the damage that your boyfriend may cause to the other party’s vehicle or property.

In addition, if you want something that would back your boyfriend up for damage on his own car, then I would suggest getting collision coverage. This would definitely provide coverage if there is something that needs to be fixed on his vehicle if he got involved in an accident wherein it’s the other party’s fault and the other driver has no auto insurance policy.

For more information about auto insurance coverage, ask your car insurance agent in Arizona.

Tags: auto insurance, car insurance online, car insurance tips