I would be celebrating my birthday on December, on Christmas day to be exact. My son promised me that as a Christmas and birthday gift, he would buy me a new car. I know that it’s not advisable to buy an expensive car because that would only increase my car insurance premium in Arizona. So I am not considering of getting an expensive car at all. What worries me is the coverage on (my would be) new car. Is there a different auto insurance coverage for that? Or it’s just the same?

Benny

Peoria, AZ

Happy Birthday and Merry Christmas in advance Benny! I bet you’re excited with your new car.

Now, let’s go back to your question. In most cases, if a policyholder replaces an insured vehicle with a new car, his or her auto insurance coverage would be the same on the replacement vehicle. Meaning to say, whatever auto insurance coverage a policyholder has in his/her old car would be the same on his/her replacement vehicle.

In addition, in general, a policyholder is required to inform his/her auto insurance company about the change on the vehicle. The grace period is normally one month or less. So, you are given around a month or less from the time your son purchased the car to inform your car insurance company of the replacement vehicle.

It’s also best that you check your auto insurance policy for additional details regarding your car insurance coverage. Feel free to consult with your car insurance agent in Arizona for more help regarding your inquiry.

I am going to have my new car registered and also have it insured. I’ve already researched and decided on the kind of auto insurance coverage that I would be purchasing. Since I am totally new with car insurance stuff, I’m quite confused with it. I have one question. Once I’ve purchased my car insurance in Minnesota, who would be covered? I know, that it gives coverage for myself but are there other people who would be covered too? I have a wife and a teen daughter, will they be covered by my auto insurance policy?

Ken

Brooklyn Park, MN

I’ve read something about your question from the Minnesota Department of Commerce Auto Insurance Guide. And accordingly, you are covered by your auto insurance policy and also any person/s related to you who is living in your household are also covered. This can be your wife, children (which is your daughter in your case), and other relative who is under your custody and is living with you. However, this is provided that those people do not have their own auto insurance policy.

In addition, any people driving your car, as long as they have your permission to drive your insured vehicle are also covered. Again, this is provided that those people do no have their own auto insurance policy or they are not covered by any auto insurance policy.

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

I have an insured vehicle in Massachusetts. But because of my health condition, as of the present, I am not allowed to drive yet. Now, my sister is using my car. However, she is not named on my auto insurance policy. My question is, if my sister got involved (and I hope she won’t) in an accident would she be covered by my auto insurance company? Also, if she has a traffic violation using my car will it be put under my name? With that, will it cause my auto insurance rate to go up?

Lea

Haverhill, MA

I wish you good health Lea.

Now going back to your question, in general, auto insurance companies only cover a person if he/she is listed as one of the driver’s in your auto insurance policy. Since you’ve mentioned that your sister is not listed on your car insurance policy, then I am afraid but I think she is not covered by your insurer.

In addition, if she is cited for a traffic violation, you don’t have to worry because it will not affect your driving record at all. Said violation will be listed under your sister’s name. So with this, your car insurance rate will not go up because it is her traffic violation not yours. However, if you decide to file for a claim because there was a damage incurred on your vehicle because of your sister’s action, then your auto insurance rate might go up. This is because claims history is usually one of the factors that affect car insurance premium to increase.

To better help you with your inquiry, it is best to ask your car insurance agent in Massachusetts.

I am considering the idea of adding optional auto insurance coverage on my policy like Medical Payments Coverage. Correct me if I am wrong, but does this car insurance coverage mean that if I am involved in a car accident, my auto insurance company will pay for my medical bills? How about for passengers in my car? I am from Arizona if that would help you.

Georgina

Phoenix, AZ

Yes you are correct. In general, the medical payment coverage pays for the medical and even funeral bills if a policyholder is involved in a vehicular accident. In addition, even the passengers you have in your car are also covered by medical payments coverage. The amount that your auto insurance company will provide would depend on the limits that you have on that policy.

However, it would be best to check your car insurance policy to get a detailed description of the medical payment coverage. You can also ask your auto insurance agent in Arizona to better help you with your question. If you are shopping for auto insurance quotes in the state of Arizona, I would suggest trying the websites. It gives you faster results and also gives you the benefits of comparing auto insurance rates from different car insurance companies in a very easy manner.

I am aware of different types of auto insurance coverage. Like there are those that are mandatory by state law and there are those that are merely optional. I would like to know the other types of auto insurance policy in Washington. I would appreciate it more if someone could give me the uncommon coverage. I already know some like PIP, collision, comprehensive, liability etc.

Julius

Graham-Thrift, Washington

Hello Julius!

Your are correct that there are mandatory and optional types of auto insurance coverage. Let me just give you the optional coverage that I am aware of:

Car Rental Expense: This kind of policy covers you for renting a car in an event that your car is involved in an accident;

GAP coverage: Covers you if your car had been determined as total loss. It pays for the difference between the present market value of your vehicles versus the amount you owed from the lender;

Emergency Road Service: When your vehicle breaks down, this covers for towing service;

Custom Equipment Coverage: If you have made some custom changes on the car and the car was damaged then this will cover for the loss of the changes you made on the vehicle;

Death, Dismemberment and Loss of Sight: Covers for death and particular injuries to person/s named under your policy that resulted from vehicular accident.

Don’t forget to ask your car insurance agent for other optional auto insurance coverage that you might be interested in getting. The Washington State Office of the Insurance Commissioner would also be glad to help you with your inquiry.

My boyfriend is Russian by citizen. He is lives in Alaska on a student visa. He also has Alaska driver’s license. But what worries me is that he doesn’t have auto insurance coverage on the car that he is using. What would be the penalties if a non-US resident is caught driving without auto insurance in Anchorage, Alaska?

Carmen

The state of Alaska requires its resident to maintain financial responsibility on all the cars they are using. This insures that all vehicles being driven and operated on the streets of Alaska to be financially responsible to pay for any damages that might be incurred if an accident happened. The minimum required limits in Alaska is $50,000.00/injury or death/ person; $100,000.00/accident; and is $25,000.00 to cover for damages to property.

If your boyfriend is caught driving without auto insurance then the Alaska Division of Motor Vehicles (DMV) would suspend his license. This suspension can be from 90 days to 12 months which also depends on previous license actions. If your boyfriend is involved in an accident and he is not the at-fault party, his driver’s license will still be suspended.

As to your question regarding the implication of the violation with his being a non-US resident, I would suggest you ask the U.S. Department of Homeland Security or the US Customs and Border Patrol (CBP). However, before anything like this happens, the best way to avoid this is to get auto insurance now. Contact your auto insurance agent in Anchorage, Alaska to give you car insurance rates or use our website now.

I am really confused with auto insurance law in Ohio. I heard from a friend that it’s ok if I don’t purchase auto insurance policy because I am not required to have one. But I also heard from another friend that I need to purchase car insurance policy or else I would be punishable by law. I am from Kettering, Ohio.

Tyra

Both of your friends are correct, at some point.

To better give you a clear answer, let me first tell you what is required by Ohio State Law regarding your question.

As per Section 4509.101 of the Ohio Revised Code, anyone operating or driving a motor vehicle in Ohio must maintain proof of financial responsibility during the entire period that they have a registered vehicle in Ohio. This requirement for proof of Financial Responsibility (FR) can be met through:

• Purchasing auto insurance liability policy;
• A bond amounting to $30,000 issued by a duly licensed car insurance company or surety;
• Certificate indicating that there is a money or government bonds amounting to $30,000 on deposit with the Ohio State Treasurer. This certificate must be issued by the Ohio Bureau of Motor Vehicles (BMV);
• Certified proof of FR, which is signed by a Ohio licensed insurance agent that should be on a form set by the Ohio BMV;
• Certificate of self-insurance for a resident with 25 motor vehicles under their name. This certificate must be issued by Ohio BMV and;
• Certificate of bond that is issued by the Ohio BMV amounting to $30,000. This certificate must be signed by 2 real estate owners with $60,000 equity.

Going back to your question, what is required in your home state is to have a proof of financial responsibility to give you the legal rights to operate a vehicle in Ohio. This proof of financial responsibility is not limited to purchasing auto insurance policy alone. There are other ways in meeting the financial responsibility requirement. But in general, Ohio residents opt to purchase auto insurance coverage. If you’re looking for auto insurance rates in Kettering, Ohio you can start searching by entering your zip code now on this page.

I’ve noticed that my car insurance provider increased my premium for my brand new car here in South Gate, California I don’t understand why I have to pay more for insurance on a newer car!?

Donato

In the car insurance business, one of the most important things you have to remember is that car insurance providers rely heavily on statistics; accidents, theft incidences, injury, collisions, and vandalism are all correlated to the type, built, cost and age of vehicles they insure. Some information comes from outside sources such as The Highway Loss Data Institute and some are from the car insurance provider’s historical records as well. All of these determine how much they compute for your rates and charge for auto insurance coverage.

So basically, the newer, the sportier, or flashier your vehicle is the greater the likelihood someone will steal it, get envious and vandalize it or become more prone to accidents since you may decide to show it around more often there in South gate, California. Your car insurance will justify your high premium on the basis that they consider your brand new vehicle riskier or costlier to insure in their part than a less popular, older vehicle. It may seem unfair to the ordinary consumer but that is how the business of insurance is. There is no reason however, that you should agree to a higher insurance if you can find competitive pricing elsewhere. You can even leverage competitor prices to get a better car insurance deal for your loyalty as a customer.

Reader’s Question:

I only have liability insurance on my vehicle in Frederick, MD. My son was driving it today and the engine got caught on fire and the vehicle was totaled more or less. He has an SR22 on file, and he told me that his SR22 insures him for any individual’s vehicle he may be driving at the time of an accident. Is it true? Will his SR22 insurance cover damages to my vehicle because he was the driver?

Michelle

Frederick, MD

The SR22 insurance policy gives liability coverage only. The SR22 would not cover any physical damage to your car. Moreover, since he was driving your vehicle, your car insurance policy would be primary and that too provides only liability coverage.

The SR22 insurance policy that he has provides additional liability coverage for him while driving any non-owned car and also satisfies the state’s financial responsibility requirements.

Here, you can get car insurance quote for your new car in Frederick, MD including physical damage coverage. Just type in your zip code and follow the pages. There no longer need to leave your home or office to buy the car insurance.