Reader’s Question:

I have a leased a vehicle and it is covered by auto insurance. If I let my daughter or son, who are over twenty five drive the vehicle, are they covered?

Janet

Plymouth, MN

Whether you own your vehicle or have a lease or a loan on it, to check if your children are covered by your current auto insurance policy you will need to read through your insurance policy and check with your insurance carrier.

If your daughter or/an son reside in your household then an insurance carrier would normally require them to be on your insurance policy to be properly covered. If they reside outside of your residence and drive your vehicle with permission, just as a friend might, then they are likely covered under your insurance policy. Some insurance policies have exclusions so that is why it is always good to verify with insurance carrier before permitting anyone that is not listed on the insurance policy to drive your car.

Since this is a leased vehicle you may also want to read over the terms and conditions of your lease to make sure there are no restrictions about who drives your car. If you are not sure after reading over the leasing paperworks then verify with your car’s leasing company to find out if your daughter and son are permitted to drive your leased car.

Tags: auto insurance

Reader’s Question:

I’m a new driver here in San Francisco, CA. I still don’t have a car but I’m planning to get one, hopefully soon. I’m totally clueless when it comes to auto insurance stuff. Can you give me some tips on this?

Paige

San Francisco, CA

Sure Paige! The very basic thing you should know is what does California law requires for auto insurance coverage.
California State Law requires every owner and driver to maintain financial responsibility for accidents and there are four ways to establish such responsibility:

1. coverage by auto insurance policy;
2. a deposit amounting to$35,000 to Department of Motor Vehicles (DMV);
3. a surety bond amounting to $35,000, which must be acquired from a duly licensed company in CA; and
4. self-insurance approved by DMV

Now, let’s consider the types of auto insurance policies. Being in Bay Area also means getting an expensive auto insurance. Usually, there are 3 types of policy offered - preferred, standard, and assigned. Each policy differs in price and coverage.

Standard policy is for drivers with less traffic violations and/or cancellation of past polices. This policy offer lower premiums as compared to other kinds of policy. Preferred policies on the other hand are for California residents who have good driving history, (and I mean “clean” driving record) for three years. Lastly, Assigned Risk polices offer the most expensive rates but at the same time the offers the least amount of coverage.

I would also suggest for you to check on auto insurance companies in San Francisco, CA. You can compare quotes here easily and faster and get the best policy that you think meets your needs.

Tags: New Driver Insurance

Reader’s Question:

Does change in civil status make insurance rates cheaper? If I get married will I be able to save money on my car insurance in Boston, Massachusetts?

Cole

Boston, MA

Most car insurance companies offer a variety of discounts that can save you money on premiums. However, all the discounts that a particular company might offer may not be available in every state. There are many factors that are being considered by car insurance company for you to be eligible for discounts and there are factors that can also affect your car insurance rates. Once of the factors considered is your marital status. Married people tends to be more experienced, responsible and more stable. So it might be possible to save money on your auto insurance premiums in Boston, Massachusetts if you get married. If both of you have good driving records, it could even help with the insurance rates. Generally, insurance companies find that married couples are safer than single individuals.

In Massachusetts, the Division of Insurance lists a 5% discount can be applied to the premium paid for compulsory coverage and, if selected, optional coverages if a married couple own two or more vehicles insured by the same car insurance company, generally known as a multi-car discount. However, if your fiancé has a bad driving record, you can expect it to affect your insurance premium after you get married. Your car insurance policy covers you, your spouse, any other individual insured under your policy, and any licensed driver in your household. If any of those people have a poor driving record, it will surely affect your rates.

Tags: Car insurance discounts, car insurance rate

Reader’s Question:

I know that there are different factors that can make my car insurance premiums go up and one of these is the number of miles driven each year. I’m probably moving from Islip New York City to Connecticut; how will this affect my premium?

Alicia

Islip, NY

Though there may be a surcharge applied for people with high mileage, it is meaningless. Where you live is a far more important factor. For example, I used to have a 40-mile daily commute, which dropped to zero when I moved from the suburbs to the city. My apartment was only 100 yards from my job (on the same side of the street, no less). My car insurance premium DOUBLED, despite the fact that the car was driven 90% less than before. So what I did was I shopped around and unfortunately, it didn’t help.

If you move from an urban area to a rural area, you will most likely get a HUGE DISCOUNT no matter how many miles you drive.

However, if you’re planning to move to Connecticut; your actual mileage may vary. In the state of Connecticut, your zip code seems to be much more important than how much you drive, the type of car, your age, gender, or driving record. You could probably insure a Corvette (and maybe even hit a few people) before your premiums went back to what they were before.

Tags: automobile, Car insurance discounts

Reader’s Question:

Does New York state law allow married couples to have separate auto insurance policies?

Brooke

Yonkers, NY

It is your option to have separate auto insurance policies, but most of the time; it is cheaper to be on the same policy. A New York insurance company will ask questions of you being married or if there are other licensed operators in your household as a basis in calculating your premium rates.

If you and your spouse have separate auto insurance coverage, you may want to do a cost/benefit analysis of each plan to see if you should continue to keep your auto coverage separate. For example, if your spouse’s auto insurance policy has a higher deductible and/or co-payments or fewer benefits than those offered by your plan, he or she may want to join your auto insurance plan instead. You may also want to compare the rate for one family plan against the cost of two single plans.

It is also advisable for you to examine your auto insurance coverage too. If you and your spouse own separate cars, consider pooling your auto insurance policies with one company. Many car insurance companies will give you a discount if you insure more than one car with them. If one of you has a poor driving record, make sure that changing companies won’t mean paying a higher premium.

Tags: auto insurance premium, car, cheap auto insurance

Reader’s Question:

I’m a bit concerned because I’m marrying someone who has a poor driving record in Waterloo, IA. With this, can I expect that my insurance rate will go up?

Joan

Waterloo, IA

If your fiancé has a poor driving record, you can expect that it will affect your insurance premium after you get married. Your car insurance policy covers you, your spouse, any other named insured under the insurance policy, and any licensed driver in your household. If any of those people in your auto insurance policy have a bad driving record, it will significantly affect your insurance rates.

If his driving record is really bad, you may want to consider additional strategies to lower your premium. If you arrange to buy all of your insurance policies which includes your homeowners policy from one company, you may benefit from multiple car and/or multiple policy discounts. Normally, in Waterloo, IA, your future spouse can take driver safety courses to improve his driving record. Furthermore, with your combined income, you might be in a position to raise your deductibles to keep your premium down.

Your fiancé may also be eligible for a low mileage discount by using public transportation for his commute to work. If all else fails, you may have the option to use a “named-driver exclusion” clause after you’re married to exclude your spouse from your insurance policy. This means that your spouse is not covered by your insurance company to drive your car. Your spouse could insure his car separately, and if it is an older model, waive collision and/or comprehensive coverage. Lastly, your insurance agent can discuss all of your policy options with you and make suitable recommendations.

Tags: auto insurance, Car insurance discounts, high risk insurance