Cheap Vehicle Insurance

Reader’s Question:

I have a new car courtesy of my boyfriend. Can I register it without any insurance? If not, please help me on how to get vehicle insurance quote in California so I can show it to my boyfriend.

Barbie

San Francisco CA

Since you are in California, vehicle insurance is a requirement for vehicle registration or renewal of registration. In some states, you need liability coverage before you will be issued a driver’s license. But generally, you need a vehicle insurance before you can drive on the road. The enforcement of this law might just vary from one state to another. There’s no way you can get away from it because ignorance of the law excuses no one.

California state law requires minimum Bodily Injury Liability of $15,000 per person up to $30,000 per accident, and Property Damage Liability limit of $5,000.

Vehicle insurance is a way to protect you and your car. Don’t you like to protect the gift your boyfriend gives you? Anyway, it is easy to get vehicle insurance quote nowadays. With the Internet technology, you can shop for insurance quotes at the comfort of your house right beside your boyfriend. So he can also help you out in deciding which insurance coverage to get from what company.

Now that you have an idea of what you want in your car insurance, and how much you can afford, then go to car insurance companies’ or brokers’ websites to get vehicle insurance quote. You can use their free insurance calculator to get free insurance quotes.

Reader’s Question:

I bought a used car. Will it be easy for me to find the cheapest vehicle insurance for it?

Rick

Las Vegas, NV

Getting a used car insured is pretty much the same as insuring one that’s brand-new except that your chances of getting the cheapest vehicle insurance is possibly bigger. Whenever an insured car gets stolen or damaged to the point where the cost of repairing it becomes more expensive than the car itself, that car is said to be written off. Since a used car has far lesser value compared to a brand-new one, the insurer’s losses will also be relatively less. Should you buy comprehensive and collision coverage for it, the car insurance company should therefore also charge you less. Actually, some used car owners forego getting comprehensive coverage altogether as this isn’t part of the state’s minimum requirements for car insurance. So used car owners are likely part of the lucky few who get to pay the cheapest vehicle insurance. One more thing about used cars that increases your chances of getting the cheapest vehicle insurance is that you can raise your deductibles. Higher deductibles mean lower premiums. It doesn’t make much financial sense to spend too much on ensuring thorough repairs for a car that already has some wear and tear on it. A used car however can cause just as much damage or bodily injury as one that’s brand new so your rates for liability coverage won’t really be affected.

Reader’s Question:

Can you explain what factors affect vehicle insurance premium? Thanks!

Timmy

Bowling Green, KY

In short sentences, I will explain to you what I know. Let me first start with Classifications. Classifications that are used as basis for your vehicle insurance premium are: the vehicle – type and model, age, and actual cash value (ACV); driver – age, marital status, gender, driving record, profile report, and location of residence; and the type of coverage – liability, comprehensive, collision, deductibles, etc.

Teenagers or senior citizens, for example, belong to different “age groups.” Now, these are groupings under special classification or groups being categorized above or below from average. A change or variation from this grouping, like for instance, a shift from one group to the other will determine the cost of your annual or monthly vehicle insurance premium. And also, a variance or change on your group would determine your assigned risk level.

In summary, factors are divided into three classifications: the vehicle, the driver, and the type of coverage. These classifications are further classified and broken down to details such as age, type of model and make, manufacturer for the vehicle; age, gender, marital status, profile of the driver; and the type of coverage such as collision, comprehensive, etc.

I hope I answered your question, Timmy.

Reader’s Question:

Car cheap female insurance young student needs auto insurance. When my daughter moves out to go to college would she needs to get her own car insurance?

Jay

Birmingham, AL

If your daughter moves out of your home permanently, then she really has to get her own insurance come insurance review time. This is because she will no longer be a part of your household, and basically, her car and yours no longer share the same permanent garage address. You did not specify if your daughter would be going to a local university or in another the state. Another thing is if your daughter will have her own driver’s license by the time she moves out. If she’ll have it by then, then that would qualify her to get insured and get her car cheap female insurance young student. Like I said, if the move would be permanent, then go ahead and get her insurance of her own.

However, if it were the other way around, then it would be more practical to continue listing her under your insurance…what with the cost of universities these days, plus the actual cost of her running her own place. This way, you can still get the necessary discounts for your policy by listing another driver, kinda like a multiple driver discount.

If your daughter is going to another state for school, better check with your current provider if your coverage is compatible with the requirements of the state. If not, then have them modify her part of the coverage. Some providers make special considerations to customers who have to travel out of their own state on a regular basis. One more thing to look into is if the state requires its permanent residents to have within-state insurance. In that case, you would have to get her one when she moves there.

Reader’s Question:

Why is it so hard to look for cheap vehicle insurance?

Gary

Seattle, WA

Year in, year out, there’s this item that’s a constant thorn on the side of our budget that we just can’t simply pull out – vehicle insurance. It’s an inescapable household cost just like gas, electricity and water. You would think that cheap vehicle insurance would be readily available nowadays with practically all car insurance companies, brokers and agents claiming to offer it. But, of course, each of us has his own idea of what cheap vehicle insurance ought to cost. Those of us who have had to really tighten our belts have the hardest time finding cheap vehicle insurance.

Perhaps cheap vehicle insurance isn’t always to be found; maybe it’s something you have to achieve. You may or may not have tried any of this, but here are a couple of things that might help you save some money. First of all, don’t snatch the first quote you’re offered with. With a little more shopping, you’re likely to find somebody willing to offer you less. Next, raise your deductibles. If you drive carefully enough and only use your car to drive to and from work, road accidents shouldn’t be a frequent feature of your life. Next, don’t buy too much liability coverage. Liability insurance is there to protect your assets. It would be superfluous to take out property and bodily injury coverage that’s way beyond your net worth. Next, Collision coverage and Uninsured Motorist coverage essentially offers the same benefit. If you already have the one, you don’t need the other. Finally, safety features on your car go a long way to getting you discounts. More safety features mean more discounts.

Reader’s Question:

Can you give me some tips on how to get vehicle insurance that’s cheap yet has enough coverage?

Carol

St. Paul, MN

If you want to get vehicle insurance that’s cheap but has enough coverage, you may ask your insurance carrier to give you the minimum insurance required by the state of Minnesota. This minimum insurance requires that you have liability, PIP, underinsured, and uninsured coverage.

The minimum requirement for liability coverage is 30/60/10. This figure stands for $30,000 liability on the bodily injuries of one person, $60,000 bodily injuries of two or more persons (as long as all injuries were acquired in a single accident), and $10,000 worth of liability for physical damages made to other vehicle/s involved and to other property damages.

For Personal Injury Protection (PIP), you should cover $40,000 for each person per accident. This figured is composed of $20,000 worth of medical expenses and $20,000 worth of non-medical expenses like lost wages and replacement fees.

For the underinsured motorist liability, the minimum coverage is $25,000 for bodily injuries of one person and $50,000 for two or more persons.

For the uninsured motorist liability, $25,000 worth of coverage is required for one injured person, and $50,000 is required for two or more persons.

If you think that by getting the just minimum required coverage is not enough for you to get vehicle insurance that’s cheap enough, you may try checking with the insurance company if they offer discounts that are applicable to you.

Reader’s Question:

I am having a hard time finding cheap vehicle insurance. Can I just go ahead and cancel my insurance? I do not drive my car that often, anyway.

Butch

Baltimore, MD

As you may already know, it is illegal to drive around uninsured in the streets of Baltimore and any public road in the country for that matter. Failure to obtain vehicle insurance will result in the revocation of your driver’s license. You will also be asked to return the vehicle’s license plates. If you refuse, then you will be fined and may be ordered to be put in prison.

If there were gaps in your vehicle insurance and were unfortunately caught, you will need to resolve the matter as soon as possible. If you do not, then you get to pay the fine of $150 for the first month and $7 for each day following that. You will also need to pay additional administrative and reinstatement fees on top of these fines.

As costs quickly add up, giving up that vehicle insurance coverage will not be a very smart move. Speak with your agent because you may qualify for cheap vehicle insurance for not driving your car that much. Low mileage discounts may be extended to you. If your car is parked in a garage rather than on the street, then you may get a favorable rating for that, as well. Of course, maintaining a clean driving and insurance record will be beneficial as rates will not increase unnecessarily. Finally, always be updated on the current prices, so that you know whether or not you have the most affordable vehicle insurance rates. You can do this by periodically checking for vehicle insurance quotes on the Internet.