Hey Dan,

I have gotten a rate of $588 annually for liability only auto insurance on my car. I am 50 and have a clean record. I got my policy with help from this site and The General. Amica also has great rates so I am told.

I had an accident two weeks ago in Sacramento, California where I live, but I found out that my insurance will only cover the hospital bill of the driver I got into an accident with. My insurance said that my coverage will only be limited to personal injuries and not property damages. Was I swindled by my insurance agent?

Joseph,

Sacramento, CA

Well, Joseph, it seems you are a classic insurance buyer where you sign first and then ask questions later, when you’ve already gotten into an accident. Thinking you have an insurance coverage but not really understanding what and how much your insurance will cover is just the same as wearing a body armor made of cardboard in the interior. You’re giving yourself a false sense of security this way, if I may add. Joseph, I think what happened is, you bought what is called the Personal Injury Protection auto insurance or better known as PIP. The PIP is mandatory in 46 states and their cities including Sacramento, California, so, we might call them your basic insurance. Well, at least your PIP covered injuries inflicted. When accidents really are that bad, injuries to persons are much expensive rather than those damages to properties. Imagine, you or the other driver were put into comatose or needing surgery and will be confined to around 3 months in a hospital, can you imagine the bill that would amount to? If you’re really on a tight budget, personal injury protection auto insurance wouldn’t be that bad. As we say, as long as I breathe there is hope, at least being alive or having the means to stay alive is more than anything we can ask for. Damages to property won’t really be that a big thing when you know you just cheated death. So, drive safely.

Tags: auto insurance, car insurance, car insurance agent

Hi, I have a friend who recently got a job here in Sarasota, Florida, and she needs a car to drive to and from work. The problem is they only have one car, and her husband uses it. I was thinking of lending her my car. If something happens while she’s driving, is my auto insurance going to pay for the damages?

Beth

Sarasota, FL

Hi, Beth! To answer your question–As long as she has your permission to drive your car, yes, your car insurance company is going to pay. It doesn’t mean that she has to get your permission every time she uses it–it’s just that you should be able to say that you actually lent her your car. I think, though, that it’s a different thing if she uses your car more than you do. Technically speaking, a car insurance policy is associated with the car itself. However, car insurance companies take note of who the primary driver of the car is also.

One thing you can do is to call your car insurance company in Sarasota, Florida and have your friend added to your insurance policy. If they find out that your friend is the primary driver, and not you, they may say that you have given them false information and not pay. Another thing you can do, and this is better, I think, is to ask your friend to get a non-owner’s policy. This type of insurance covers any car she may drive. But if she gets into an accident using your car, your insurance is who’s going to pay first, and then your friend’s policy will cover the excess amount that isn’t covered by yours.

I would like to make sure if it is illegal to have your car insurance registered to a different address than where you live? I live in Los Angeles, CA right now, but if I place the address for my car insurance to my parent’s house in another city, the rate is reduced by at least half.

Victor

Los Angeles, CA

It is illegal and a form of fraud to give false information on an insurance application, especially for the express reason of lowering your insurance rates. According to the California Department of Insurance, fraud happens when an individual knowingly lies to obtain some benefit or advantage to which they are not otherwise entitled or an individual knowingly denies some benefit that is due and to which someone is entitled.

An alleged wrongful act may be handled as an administrative action by the Department of insurance or the Fraud Division may handle it as a criminal matter depending on the specific issues involved. Trying to obtain car insurance from your parent’s address instead of your own address where the car is actually garaged would be misrepresentation and could get both you and your parents in trouble if done. If you did acquire car insurance using their address and this lie was later uncovered your car insurance could be cancelled and if an accident occurred it may not be covered since the insurance policy was set up using false information.

This can also be classified as material misrepresentation which as defined by the Department of insurance is a false statement given by an applicant of any important fact that, had the insurance company known the truth, it would not have insured the risk. Instead of committing fraud it is best to be upfront and truthful with an insurance company and use your correct address. If you want to try and reduce costs for your car insurance in Los Angeles, California ask about discounts or if there are driver programs in which to participate so that you can reduce your premiums.

If I get a ticket in Las Vegas, Nevada for running on a red light and having no car insurance, will I have to get SR22?

Molly

Las Vegas, NV

In the State of Nevada, being convicted of disobeying a traffic signal or stop sign in Las Vegas is worth 4 demerit points on your driver’s license. Driving without car insurance does not give you demerit points but does come with grave penalties.

Las Vegas, Nevada mandates that all registered automobiles must have minimum liability insurance coverage of 15/30/10. Should the car insurance coverage lapse while registration is still current, the Nevada Department of Motor Vehicles may suspend the vehicle registration and charge a $250 reinstatement fee.

If you have your license suspended because of your recent violations, or total demerit points on your driving record, you may be required to file a SR-22 with the DMV to recover your driving privileges. When you are required to file an SR22, Proof of Financial Responsibility, the period of required coverage begins when you reinstate your driver’s license. In the State of Nevada there is no time limit or statute of limitation on SR-22 insurance requirements. If you do not keep the coverage continuously during the required period, your license will be suspended. To find out what your total penalties will be for your tickets, contact the Court or entity listed on your traffic citation.

Can a police officer impound your vehicle just because you fail to show proof that your vehicle is insured in Lakewood, Ohio?

Jones

Lakewood, OH

It is illegal to drive a vehicle without insurance or any form of Financial Responsibility (FR) on the car in Lakewood and in any areas in Ohio. It is also illegal for any car owner to permit anyone else to operate the owner’s vehicle with Financial Responsibility proof. If you are caught driving without auto insurance in Ohio, the penalties can include: driver’s license suspension for a minimum of ninety days and up to two years, license plates and/or automobile impoundment plus fines and court fees.

If you are involved in an accident without insurance, or other Financial Responsibility coverage, in Ohio other penalties may apply. You may have a security license suspension for two years or more and a judgment suspension for an indefinite period, until damages are paid.

My wife has not carried car insurance since 2005. I was pulled over yesterday in her vehicle and had to surrender the license plates. How long can her license be suspended in Hamburg, New York and what are the fines for having a car and not having auto insurance on it?

Ben

Hamburg, NY

According to the New York State DMV if you do not have car insurance coverage and you do not surrender your vehicle plates to the Department of Motor Vehicle, your registration and driving privilege are suspended indefinitely.

You must pay a termination fee of $25 to reinstate your license when the suspension ends.

There likely will be other associated fees and fines to be paid so you and your wife may want to call the court listed on the ticket received for driving without insurance. The court should be able to give you with the information you need to know about this violation and its associated penalties.

Is it possible to get auto insurance in Massachusetts if I have an unpaid moving violation in another Illinois? I am a safe good driver with no speeding tickets or anything like that

Frank

Medford, MA

You may be able to obtain car insurance in Medford, Massachusetts if you have unpaid moving violations in another state if your license has not been suspended due the unpaid tickets in Illinois.

In Massachusetts traffic tickets, such as unpaid parking tickets, can prevent you from car registration or renewing your license. Without having a full valid license it will be hard to get car insurance in a different state or the same state. Also always remember that many states have extra fees for license reinstatement or car registration.

To keep your license from being revoked or suspended it is advisable to either fight it in court or pay the traffic ticket.

So if it is the traffic ticket affecting your driver’s record you may want to check if you can get the ticket removed or taken care of in such a way that your driving history is not affected.

Is it legal if I live in Northeast Cobb, GA and title a vehicle in FL so it would be cheaper? How would this affect auto insurance as well? Would it matter if I am a good driver with a clean record?

Brandon

Northeast Cobb, GA

It is not advisable to try and avoid paying the taxes due in one state on a car or try to pay less in taxes by titling a vehicle in a different state. It is considered fraud in most states if you do it in purpose in order to avoid taxes that a state requires on a car.

As for the car insurance concern, normally you need to insure and register your car in the state which you live (in your case in Northeast Cobb, GA) and the car is garaged. If your vehicle was titled and registered in FL you would be required to have FL insurance on it. Most insurance providers in Florida would be curious as to why the vehicle is garaged in GA but titled in FL and may not offer coverage since vehicle is not residing in Florida.

If Im driving a company car, do I need to use my own insurance?

Molly

Thank you for asking.

All vehicles that is being use in the public road must be insured by the owner in accordance with the state laws. You company is the one responsible for the insurance and for making sure that the vehicle that is being used by the employees are properly insured.

In case of accident, the insurance usually follows the vehicles,, so the insurance on that vehicle should be used as the primary insurance, and your own insurance will kick in if the damages on that vehicle exceed the limits of the insurance on that vehicle. So in most cases, if you are not driving your own vehicle, if its owned by a friend or by the company, you are not required to use your own insurance on that vehicle

It is usually advised that you carry a non owners insurance policy to cover yourself if you are driving some one else’s car. In case the owner of the vehicle insurance lapse or if the limits on the policy are low, then this would give you an additional insurance protection.

You might need to contact your company’s insurance provider to check on the insurance policy on the company vehicle and check the coverage that is provided to you when you drive it.

Goodluck!

MariCAR