Reader’s Question:

What is the difference between ceded and voluntary car insurance rates?

Holly

Las Vegas, NV

Voluntary insurance is when you are able to get a car insurance policy by shopping around for an insurance company on your own. If you are considered high risk you may have difficulty getting insurance through this regular voluntary market.

Most states’ insurance regulators work the insurance industry to make it possible for high risk motorist to get the required auto insurance, so that the driver does not drive around uninsured. Special insurance plans set up by different states can be known as shared, residual, ceded or involuntary markets.

Insurance rates for a policy through a ceded insurance company will normally be higher than policies that are acquired through a voluntary insurance company. This is due to the fact that those unable to get insurance through the voluntary market are usually high risk motorists and thus will pay more than those categorized as a good, safe motorist.

Reader’s Question:

I always hear people talking about “car insurance quote” and hear about them on commercials, what exactly are they?

Ralph

Manchester, NH

The meaning of a quote in this context means to state the current price of a service or goods. So for an auto insurance quote you are stated the current cost of car insurance coverage for your car based on the information you have provided.

Getting auto insurance quotes, the current cost of car insurance, from various auto insurance providers permits you to shop around and find the best insurance rates possible for your vehicle and the type of coverages you want to place on it.

Quotes may vary depending upon an insurance provider’s rating system, rating factors and discounts they are able to offer you.

Reader’s Question:

Is there an insurance provider that will insure delivery motorist?

Michael

Detroit, MI

Most private passenger car insurance policies do not provide coverage when the covered car is used to deliver property, i.e. pizzas, other food, package or people for a fee (salary, tips, etc.). A normal personal car policy (PAP) sold to individuals usually excludes coverage for drivers who use an insured car to transport property or persons for a fee.

Coverage would probably be denied if an accident occurred while you were using your personal car to deliver packages, food, etc without your insurance provider knowing about you using your vehicle for business purposes and stating that your car would be covered. If you have an employer and you are not an independent contractor, check with your employer to know if the company will provide you coverage while you are engaged in that employer’s work.

Business or commercial driving rates, delivery services, real estate agents and newspaper carriers fall into this same category, are higher than those in standard PAP policies.