How does the whole car insurance thing work?
Monday, November 24th, 2008 at
3:56 pm
Steven asked:
I am a 19 year old boy. My parents are buying me my first car. It is a nice pre-owned car. How does the insurance for the car generally work? Is it required? I will be in college next year. Can they take care of my car insurance? How does it work? I heard that they can put my car under their insurance. Is this true? Please explain.
I am a 19 year old boy. My parents are buying me my first car. It is a nice pre-owned car. How does the insurance for the car generally work? Is it required? I will be in college next year. Can they take care of my car insurance? How does it work? I heard that they can put my car under their insurance. Is this true? Please explain.
Tagged with: Car Insurance • Insurance Car • Pre Owned Car
Filed under: Auto Insurance
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If you park your car on your parent’s property, and never drive it anywhere, you might not need to have any insurance.
But if you are going to take that car out on the public highways, you need all sorts of different types of insurance to pay for medical expenses if anyone hurt in an accident, pay for repairs if any damage from accident, get another car if it is stolen, protect your assets (house, car bank accounts) from beign drained by law suits, and also keep you out of jail.
While you are living under your parent’s roof, they can add you to their insurance policy … this will be expensive, but not as expensive as a policy in your own name.
Once you go to college, and live wherever the college is, no longer under your parent’s roof, then you do need to have policy in your own name.
Your parents can add you to their policy and show you as the full time driver for this car. Insurance is required for any vehicle being driven on the public roadways. You do not want to be driving a car without insurance should you be involved in an accident. The fines alone would be a killer.
If you intend to take the car to college and it is on your parents policy you should inform your insurance carrier. The fact is that if the college is in a better rated area than where you live you could actually save money on your insurance. If you have a loan on the car the bank will usually require that you carry physical damage coverage ( collision and comprehensive ) to protect their interests while they are a lien holder on the vehicle.
The best advice any one can give you is to speak to your insurance agent or your insurance carrier. That is what you are paying them for.
Yikes!! The best advice I can give you is to find a local State Farm Agent (they are everywhere) and ask him/her for twenty minutes of his/her time to explain it to you. (be sure you see the agent, NOT a staff member for this). They will be glad to explain it to you so you will understand and won’t get mad if you don’t buy a policy. They understand full well you are a pontential customer for the next fifty years and will usually bend over backward to help people with this sort of thing.
No doubt the easiest way to get insurance quotes is on the web.
Why would you waste your time on the phone calling around?
the last time i needed quotes on insurance i used one of these comparison sites and it was great.
this is the site i used and it was quick like less than 5 mins.
The last thing I want to do is listen to elevator music while waiting for a salesman.
Anyway I got good quotes and ended up saving money so I was happy.
So shop around and compare quotes which is easy on the net.
Good starting point is at this site.
Good luck.
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