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Unless you know for a fact you’ll be the only person ever driving your car, you may want to know in what situations you need to add a driver to your car insurance. The last thing you want to happen is to have a driver other than you get into an accident with your car and the company not cover the damages. Here are some situations and scenarios in which you need to consider adding a driver to your car insurance and when it’s not necessary to do so.
Who Should Be Added To Your Car Insurance?
The first thing you should do is check with your car insurance company to see what rules and policies they have for adding drivers to your insurance. Generally speaking, someone should be added to your policy if they have a driver’s license, lives in the same household as you and have as much access to your car as you do. This could be anyone from your spouse to your children, a roommate or anyone else who lives with you.
People who don’t live with you, but drive your car frequently, may also need to be added as a driver to your car insurance. Examples include a nanny that transports your children to different places, a healthcare worker that comes to your home or anyone else who has access to and uses your car regularly. Confirm with your insurance company whether this type of person should be added just in case they get into a car accident while driving your vehicle.
Situations When Drivers Should Not Be Added To Your Car Insurance
Just because you intend on allowing someone to drive your vehicle for a one-off occasion doesn’t mean they need to be added as a driver to your car insurance. Most insurance companies have permissive use policies that state the occasional driver is covered, but people who frequently use the car need to be added to the policy. So if you allow a family member to use your truck to haul a large item, they don’t need to be added. The important thing to remember is to check with your car insurance company to see how they handle these situations, since the coverage may be reduced for drivers not listed on the policy.
Driving Experience Can Impact Insurance Rates
If you have a teenager in your household driving your car, it’s best to add them to your car insurance policy. It will be cheaper to add them to your policy rather than getting their own policy, but be aware that your premium will increase also. Adding a new driver to an insurance policy is expensive because of their lack of experience. However, the more years of driving experience they have with a clean record, the lower the premiums will get over time.
Adding a new driver over 25 will be more expensive than a 25-year-old who has been driving since they were 16-years-old. The reason is because of the experience factor. A new driver over 25 should expect to pay higher insurance rates for at least three years from the start date of their policy, as long as they keep a clean record in the process.
What Single Parents Should Look For In Car Insurance
A single parent always looks for ways to get the best car insurance coverage at the best possible price. Being a single parent can be challenging enough, but there are some ways to reduce your financial burden while still ensuring you and your kids are protected. The car you drive is a major factor when it comes to the insurance premiums you have to pay. To reduce your insurance rate, consider only driving a car as big as what you need and avoid any luxury models as they typically have higher rates associated with them. Another thing a single parent can do is raise your deductible so your premium rate will decrease. Depending on how much you raise your deductible, the premium savings may not make a significant impact right away, but the savings will add up over time.
And if you have a teen driver, expect your insurance premiums to increase significantly when they are added to your insurance policy. A great way to keep the rate as low as possible is to have your teen take a driver’s safety course. You may be eligible for a discount by doing so, but the biggest savings happen when your teen driver maintains a clean driving record. The more proactive you are by giving them experience and education, the better their chances are of driving safely. Good student discounts are also offered by many insurance companies, so check with your company to see what their requirements are.
No one wants to pay more than they have to for car insurance, so always call your insurance company to see what discounts you’re eligible for while also maintaining sufficient coverage.
When shopping for a specific make and model of a vehicle, it can be easy to forget about the costs involved with auto insurance that you’ll need to obtain when driving the vehicle around. The year, make and model for your vehicle are the main factors used to determine your car insurance policy. As a driver, it’s important to understand how much you can expect to pay when shopping around for a quote for proper coverage.
The average theft rates of the make and model are also factored into the cost. Drivers living in busy downtown areas or cities are likely to pay more because there’s typically a higher theft rate.
Luxury car insurance can mean paying more for the policy, which can cost an average of $2,000 per year or $168 each month. Vehicles like the Mercedes-Benz CLS-Class can cost anywhere from $1,596 to $2,982 depending on the company you select with the policy you choose. The Mercedes-Benz C-Class can be $167 per month and ranges from $1,473 to $2,671 per month.
Those who own a luxury vehicle can also choose to add on extra insurance options like collision and comprehensive insurance, gap insurance and custom parts and equipment. With custom parts and equipment, you can have coverage for items like television equipment, stereos, navigation systems, wi-fi and special carpeting or installation.
The Pontiac Solstice is one of the most popular sedans on the road and is favored for its low price tag for drivers. The insurance premiums for this type of vehicle can vary significantly. The rates are often impacted by tickets the driver has acquired in recent years, if you own your own home, the deductible you choose, your credit score, the safety rating of the Solstice you own and your gender because men often pay more than women.
As a mid-size automobile, the Chrysler Sebring costs an average of $85 per month to insure, which is influenced by a variety of factors. The age of the car, the age of the driver, the location of the residence of the policyholder and the driving record of the policyholder all determine the rate.
Comparing rates is key to getting the best deal on your Sebring insurance policy so you can continue to keep up with the maintenance and any car payments you may have if you’re financing the vehicle.
Nonowner Car Insurance
Many people are surprised to learn car insurance policies are also available for drivers who don’t own a vehicle. Car insurance can be useful if you still spend time driving, even if it’s not your own car. Nonowner car insurance in New York can protect your pocketbook if you’re at fault for causing a collision and will also protect your at-risk driver status.
Whether you borrow a friend’s car to run to the grocery store or you rent a vehicle while on vacation, you can have peace of mind knowing the cost to repair the vehicle you’re driving or other motorists’ vehicles will be covered with your policy.
Nonowner auto insurance policies can also allow you to save money whenever you choose to rent a car. You’ll still be required to purchase the collision damage waiver to ensure any physical damage is fully covered, but the nonowner policy you already have will typically extend liability.
The average cost of nonowner auto insurance policies is an average of $474 per year, which is influenced by the city where the driver is located, their driving record and their credit score.
Drivers who should consider getting auto insurance is anyone who rents a car frequently, if your state requires insurance to get your driver’s license reinstated and if you want to maintain continuous auto insurance coverage while you’re in-between cars to avoid looking risky to insurers.
Ways to Save
When filing a claim with your auto insurance company if a collision or accident occurs, it’s important to get a cost estimate at a local body shop to decide if you want to pay out of pocket. Paying out of pocket may be a more affordable option since the policy will likely increase in cost if you file a claim.
State of Insurance analysis tools are also available online to determine how much at-fault collisions end up increasing rates.
Checking for discounts is also essential to avoid paying full price. You can bundle your homeowner’s insurance with the auto insurance policy for added savings. There may also be discounts available for good students, good drivers and veterans. Many companies also provide discounts when you sign up for auto-pay or pay directly from your bank account. Multi-vehicle discounts and paperless discounts are also available for additional ways to cut down on what you spend throughout the year to drive insured.
We all take a risk every time we decide to drive or ride in a vehicle. Accidents happen at an alarming rate across the country, and too many people are uninsured, which can leave them with a financial burden following an accident. While auto insurance may seem like an unnecessary expense on the surface, it’s actually one of the most important things you need to protect yourself and others involved. Plus, it’s the law to have at least some coverage in most states throughout the country.
Why Car Insurance Is Important
No one can predict the cost of getting in an accident accurately. A fender bender may only cost a few hundred dollars in repairs. But a more severe accident could mean significant repairs to your vehicle and the other person’s vehicle, as well as potential injuries to you or others. Car insurance can protect you from these events. Here are the main reasons why having car insurance is so important:
- Most states require drivers to have car insurance
- Protect yourself from costly auto repairs
- Protect passengers and yourself if injured
- Car insurance as a health insurance supplement
- Peace of mind while driving
Below you will find more detail about these factors to help you decide on whether auto insurance is right for you.
Most States Require Drivers To Have Car Insurance
Each state has unique laws when it comes to auto insurance. However, most of them require that drivers at least carry a minimum auto insurance policy. If you are driving without insurance and get pulled over by a police officer, the officer may have no choice but to have your car impounded immediately. At the very least, you could incur heavy fines that may put a strain on your bank account. And there’s always the possibility of having your driver’s license suspended for a period of time. A minimum liability auto insurance policy can be very affordable, and it’s most likely the law to have one in your state.
Protect Yourself From Costly Auto Repairs
If you’ve ever had to take your vehicle into an auto shop for repairs, you know how costly it can get. A comprehensive insurance policy can help you pay for accidents caused by you or someone else. Anything from hail damage, fallen tree branches, fire, flood or other factors can happen when you least expect it, and you could be on the hook for paying for the repairs without comprehensive coverage. Collision coverage, on the other hand, helps pay for repairs in the event you collide with another car or object no matter who is at fault.
Protect Passengers And Yourself If Injured
Depending on the coverage of your insurance policy, you and your passengers’ medical bills may be covered in the event you are injured from an accident. This can include hospital visits, prescriptions, surgical procedures and other medical bills. The coverage to look into to protect yourself and your passengers are personal injury protection and medical payments coverage. Serious auto accidents can be life-changing in an instant. Dealing with life changes on top of major financial concerns due to medical bills can be avoided with a good auto insurance policy.
Car Insurance As A Health Insurance Supplement
Insurance premiums can pile up to the point where they seem unaffordable for some people. In fact, many people decide to take a risk and either forgo having car insurance or health insurance. The benefit of having car insurance is it can also act like health insurance in the event of an auto accident. This goes back to the personal injury protection coverage discussed earlier.
Car insurance policies may even cover things that your health insurance won’t after a car accident. If you need dental work completed, physical rehabilitation or other medical services directly related to your accident, car insurance is more likely to cover it than health insurance. And in the devastating event that the accident is fatal, car insurance can also cover some funeral costs.
Peace Of Mind While Driving
Even if you have complete confidence in your driving abilities, you can’t predict or underestimate the number of drivers who don’t pay as much attention to the road as you do. Uninsured motorist coverage provides the ultimate peace of mind, as it covers you even if an uninsured driver hits you and damages your car or injures you. Of course, it’s always important to be aware of your surroundings and identify reckless drivers, but you’ll at least know you’re covered with the right car insurance policy.
Another peace of mind aspect is knowing whom to call when you get into an accident. Car insurance agents and representatives work with people who get into accidents every day, so they know exactly what steps to take to get you back on the road safely. They can help you with finding the best auto repair shop, settling your insurance claims, recovering costs and more. Getting into a car accident is difficult enough to deal with, and you won’t have to go through it alone when you have a trustworthy car insurance company on your side.
Millions of people get into car accidents every year across the United States. Having to pay for repairs and other expenses can be crippling to a bank account if the person doesn’t have auto insurance. The cost of the insurance premium is a small expense when you think about the potentially devastating costs of getting into a serious accident. In other words, spending hundreds of dollars on insurance now could save you thousands of dollars later on if you get into an accident. So not only is having car insurance the law, it can save you a lot of time, money, headaches and stress by having the right policy in place.
Car insurance is a topic most people don’t enjoy talking about, but it’s one of the necessary things to have in life. A common mistake people make is thinking they don’t have to have automotive insurance since they are safe drivers. However, you have to also account for drivers around you who may not take as many precautions as you, and of course, the reckless drivers in general. Without an appropriate insurance policy, you could be on the hook for costly repairs to your car, and potential medical bills as well.
Which States Require Automotive Insurance?
Most states across the country require at least a minimum insurance policy. New Hampshire does not require drivers to purchase automotive insurance, but they will have to prove that they can pay for the cost of a car accident if they are found to be at fault. In other words, it’s likely that your state requires some sort of automotive insurance policy if you drive a vehicle. And if you don’t have the minimum requirements, you could face stiff penalties and fines, with the possibility of having your driver’s license suspended for some time.
Main Benefits Of Car Insurance
Reaping the benefits of car insurance doesn’t happen until you get into a car accident or experience damage to your vehicle. Of course, you never want to have to use your car insurance, but it offers great peace of mind having it. Some of the main benefits of car insurance include:
- Protecting yourself and other people. The impact of an auto accident can leave you, passengers or people in the other vehicle injured for a long time. With the right insurance policy, you can decrease the amount you have to pay in the event of bodily injury or even property damage.
- Paying small premiums now to save large amounts later. Paying for car insurance can seem like a waste of money until you actually have to use it. The hope is you’ll never have to, but the cost of the premiums you pay today will pay for itself if you go through an auto accident.
- Saving time, money and preventing stressful situations. Dealing with the other person you got into a car accident with is usually not an ideal situation. But with automotive insurance, you can turn it over to the insurance company and allow them to sort out all of the costs and details of how to resolve the situation.
- Aid in paying for medical bills. Automotive insurance can also supplement your health insurance. If you need dental work completed or other medical treatments as a result of your car accident, many car insurance policies will cover you when your health insurance won’t.
- Driving with peace of mind. Arguably one of the best benefits of car insurance is the ability to drive with peace of mind. Accidents happen, so feeling confident that you’re covered if something happens is underrated.
Types Of Car Insurance To Consider
Knowing what type of automotive insurance to purchase can seem overwhelming. At least know what is required in your state, and consider these other options:
- Liability. Most states require at least a small amount of liability coverage. Liability insurance covers both bodily injury and property damage if you hurt someone else or damage their vehicle in an accident.
- Collision. This type of insurance helps you pay for repairs to your car, or even replace it if the damage is too extensive. Most states do not require collision insurance, but it could prove to be valuable if you don’t have a cash reserve saved up to pay for potential repairs.
- Comprehensive. Comprehensive insurance covers you if your vehicle is damaged by hail, fallen tree limbs, vandalism, theft and any other type of damage that doesn’t come from another vehicle.
- Personal Injury Protection. You may not need personal injury protection if you have good health insurance. It’s designed to protect you and your passengers if injured in an accident.
- Uninsured motorist. It’s usually worth it to get uninsured motorist coverage just in case you get in an accident that’s not your fault, and the other party doesn’t have insurance. In that situation, your uninsured motorist coverage would kick in and pay for any damages.
- Gap insurance. This type of coverage is for people who have an outstanding car loan. Your gap insurance will cover the difference between the current value of your vehicle and the outstanding balance on the loan.
Considerations For Lowering The Cost Of Insurance
The benefits of car insurance speak for themselves, but you still don’t want to pay for more than what you need. The coverage you have is important, so you don’t necessarily want to reject certain coverages just to save a few dollars each month. Instead, it may be worth looking into getting a different vehicle. The make and model of your vehicle could significantly impact the cost of your insurance policy premium. Luxury vehicles have a higher price tag for insurance coverage, for example. Also, take a look at the most recent list of vehicles desired by thieves. If yours is on there, you may be paying more for insurance.
Enjoy Peace Of Mind With Appropriate Auto Insurance Coverage
What is the price you’d be willing to pay for complete peace of mind? When it comes to your vehicle, the right automotive insurance coverage can give you peace of mind whether you’re driving on a busy highway or your car is parked in your driveway. No one wants to incur unexpected expenses or be stranded somewhere with no vehicle. Getting insurance coverage with a trustworthy company and having appropriate coverage can prevent both of those from happening. You have the ability to purchase as much insurance coverage as you think you will reasonably need. Think about what you’re willing to risk and whether the risk is worth sacrificing some peace of mind.