Auto Insurance FAQ

Top 50 FAQ

 

Q: Can you get car insurance with only a learner’s permit?
A: Yes. A driver’s or learner’s permit grants you permission to drive and acts as a temporary license with some restrictions. You have to have coverage and can get your own auto insurance policy or be named under your parents’ policy.

Q: Will my auto insurance be affected if I get a ticket in another state?
A: As of 2005, all states were required to share their driver records with one another. The computer databases keep track of all the tickets you receive, giving states the power to automatically suspend or deny you a driver’s license based on the information in their electronic records. In sum, yes, a ticket from another state can affect your license’s status and, therefore, your car insurance. When in doubt, check with your insurance company to make sure.

Q: Do you need car insurance if you have a learner’s permit?
A: Yes, since all drivers have financial as well as safety responsibilities. You can get your own auto insurance policy or put your name under your parents’ coverage.

Q: How can you find the auto insurance records of the previous owner of a car?
A: Vehicle history, which includes accidents or previous repairs, can be had from services like Carfax. Insurance records are protected under state and federal privacy laws, so there is no way to look at anyone’s car insurance records without a legal cause. If you try, it may be viewed as an invasion of that person’s privacy.

Q: How much does the cheapest auto insurance policy cost?
A: This depends on your credit score, driving record, living location and claims history, among other factors. Car insurance policies are typically cheaper if you’re 25 years of age or older. Comparison shopping or simply asking for a discount can lead to finding cheaper car insurance options.

Q: How do car insurance companies determine if a car is a sports car?
A: Each company will have different definitions, but factors like horsepower, modifications, number of doors, type of transmission or color can often determine whether or not your car is defined as a sports car by your auto insurance company.

Q: What is no-fault car insurance?
A: This is insurance that covers specified risks regardless of fault. Not all states require this type of insurance, so check before you decide anything. If you get into an accident and it wasn’t your fault, and if you have no-fault insurance and live in a no-fault state, your insurance company has to pay for your medical bills.

Q: When you drive a family member’s car, are you covered by their insurance policy?
A: If you’re listed on their policy, then yes. If not, it depends on the policy. Usually, if you’re a relative visiting from out of town you’ll be covered under permissive use regulations. The bottom line is to check with your auto insurance carrier to make sure.

Q: How much does a DUI charge affect your car insurance?
A: As with many auto insurance questions, it will depend on your insurance company. There’s a chance you’ll lose your driver’s license, which means a car insurance policy won’t even be necessary. However, your rates will be noticeably higher. In a worst case scenario, your insurance company might choose to reject you. Some companies take on more high-risk drivers than others, so all hope isn’t lose if you are charged with a DUI.

Q: Can your car insurance be under your parents’ names?
A: Yes, so long as you’re listed as a scheduled driver on their policy.

Q: Does the name on a car insurance policy have to be the same name on the car loan?
A: Yes, since it is part of the financial contract on the car loan. Check with your auto insurance company to make sure, since there may be exceptions.

Q: Can you insure a car in another state if you’re not the primary driver?
A: This will depend largely on your insurance company, so check with them directly.

Q: What’s the best way to get auto insurance if you’re moving out of the country?
A: If you’re part of the U.S. military, it’ll be easier to consult with insurance companies to obtain a solid policy outside of the states. If you’re a civilian, larger insurance companies will probably have helpful information.

Q: If your child gets his/her learner’s permit, are you required to add them to your car insurance policy?
A: Yes, in most states your child is required to be added to your policy. Some states differ, so check to make sure.

Q: Can auto insurance companies require you to give them information about people who live with you?
A: Insurance companies have the right to inquire about people in your household to ensure they know who will be driving your car. You can choose to not comply, but your insurance coverage might be limited to only you.

Q: Can you insure another person’s car?
A: It depends on your policy, but in most cases, yes, especially if that person is a family member. In all cases, you have to be authorized and the owner of the vehicle must benefit.

Q: What is the relationship between auto and health insurance?
A: It depends on the precise circumstance of any given scenario but your health insurance policy can be selected as your primary carrier for auto-related accidents. However, your health insurance company can choose to inquire about your auto insurance carrier and seek reimbursement from them. Consult your auto and health insurers directly to ensure that you know what will happen in any given circumstance.

Q: Can you get auto insurance before you’ve moved into a new state?
A: Yes, so long as you have a mailing address there.

Q: Do auto insurance policies cover relatives who have international driver’s permits?
A: Check with your carrier, though it might be wise to temporarily add them to your car insurance policy for the duration of their stay.

Q: Are you still covered three weeks after non-payment and cancellation in Florida?
A: No.

Q: Can auto insurance be transferred to a new vehicle?
A: Yes, so long as you notify your insurance carrier as soon as possible.

Q: Do you need car insurance to drive with a learner’s permit in New Jersey?
A: Yes. The owner of the car must list the new driver in their policy.

Q: Can you use your parents’ auto insurance policy to cover a car under your own name?
A: Yes, as long as you’re listed in their policy as a driver

Q: Can you obtain auto insurance during a visit to the U.S. on a visa?
A: It would be difficult, since most insurance companies require that the covered person lives in the state where the coverage is taking place. Some companies will offer auto insurance if you have an international driver’s license, but probably not on a rental car, and the rates might be higher than usual. If possible, try to be added to a relative’s insurance policy for the duration of your stay.

Q: What is PLPD and how is it different from no-fault or full auto insurance coverage?
A: Public Liability and Property Damage (PLPD) covers you in the event that your car causes injury or death to another party or property damage to another person’s property. It doesn’t cover damages to your vehicle, theft, fire, loss of use, comprehensive or repairs.

Q: Can I drive my sibling’s vehicle?
A: If it’s a one-time event, or something that happens rarely, then it shouldn’t be a concern in most cases. If you’re living in the same household and are under the same insurance policy, it probably won’t be a problem. However, if you’re both using separate policies and this happens frequently, you should consider adding yourself as a driver under her policy.

Q: Are you required to have a driver’s license at the time of getting insurance on a new car?
A: Yes. Technically, there’s no problem with buying and insuring a car without a license, but you wouldn’t be able to drive it.

Q: Can you obtain a new car insurance policy if you let your old one expire?
A: Yes.

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Q: Why do some auto insurance companies only write six-month policies?
A: Some car insurance companies choose to do this in order to more frequently assess their drivers’ risks and adjust their rates accordingly.

Q: If your child only drives occasionally, do you have to add them to your auto insurance policy?
A: Yes, unless they have their own policy.

Q: Is it legal to use a different address to get cheaper auto insurance rates?
A: No. This is insurance fraud and could lead to criminal charges.

Q: Who is held responsible for errors on insurance forms?
A: It depends on the type of error. If, for instance, you purchased a new vehicle and didn’t notify your insurance company of the change, you would be held responsible. You are always responsible for notifying them of any changes.

Q: Can a tourist buy a car and insure it in the U.S.?
A: It depends on the insurance company. In most cases, the process of buying and insuring the vehicle as a non-U.S. resident will be more difficult and costly.

Q: Do parents pay more for auto insurance if one of their children is added to their policy?
A: Yes, since a teenager is seen as having higher risks than a more experienced, safe driver.

Q: What kind of auto insurance is required to pick up and deliver other people’s cars?
A: Business liability insurance, though the owner’s insurance policy will probably cover his/her liability. However, the company will likely seek reimbursement from you.

Q: Why is liability insurance required for two identical cars owned by the same person with no drivers?
A: Because of the possibility that another driver will borrow and drive one of the vehicles and get into an accident. Also, because of the slight chance that the car will roll away and injure someone or damage something without a driver inside.

Q: Will the cost of your car insurance be affected if someone who has outstanding traffic tickets drives a car that has your name on the title and insurance?
A: You’ll be held liable if the driver gets into an accident and causes damage or injury, thus increasing the chances that your insurance will become more costly.

Q: What is the difference between assigned-risk and non-standard auto insurance programs?
A: States issue assigned-risk insurance, while non-standard auto insurance is purchased directly from an insurance company.

Q: How can you get auto insurance if one spouse has DUIs and a suspended license, while the other one has a clean driving record?
A: It would be much easier if you didn’t include the spouse with the bad driving record on the policy, though that spouse would never be covered by this policy under any circumstances. If you have to include that spouse, be prepared to pay high premiums.

Q: Do you have to be listed under your parents’ insurance policy to drive their car?
A: Yes.

Q: Can car insurance companies charge a policy fee?
A: Yes. This fee is used to cover the costs of creating the contract. You can ask ahead of time if there will be any such fees.

Q: How can you get car insurance after two DWIs?
A: Seek out high-risk carriers like Progressive.

Q: How do you add a non-owned car insurance option to your policy?
A: Talk directly with your insurance carrier. This is a good option if you’re in the process of transitioning from one vehicle to another.

Q: Why do you have to add your child’s name to your auto insurance policy if they never drive your car?
A: Unless an exclusion is filed and approved by the insurance company, any child living in your household is assumed to drive the car. This covers those rare situations when the child might actually drive the vehicle and get into an accident.

Q: How do you get car insurance for an exchange student?
A: Though it may be difficult, he/she has to go through the required steps of getting a license and coverage. Talk with auto insurance companies to get more insights into this.

Q: What kind of car insurance do you need to hold for driving a company car for personal use?
A: Talk to your insurance company about non-owners policies.

Q: Are you held responsible if the co-owner of a vehicle drives the car without auto insurance?
A: Yes. He/she must be listed in your policy, or their own.

Q: In which state should you get auto insurance?
A: The state where the vehicle is garaged and registered in.

Q: If your car is financed through a used car dealership, do you have to get full auto insurance coverage?
A: Yes.

Q: Where can you get car insurance quotes?
A: There are various Web sites that will give you quotes, but you should also consult independent agents who can give you quotes for various carriers, not just one. The best option may be to just call or contact each company you’re interested in to see which can offer the best rates.

 

 

 

 

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