Reader’s Question:

I am purchasing a used car that is worth only a few hundred dollars. Do I still need to insure it?

Marx

Dallas, TX

Every state has financial responsibility laws requiring car insurance or the ability to pay for any damage that you will cause.

In all except for 2 states you will need to insure it. The only two states that don’t have compulsory auto insurance laws are Wisconsin and New Hampshire. Many states even require that you provide proof of insurance before you register a vehicle.

An older car that does not have much value isn’t typically insured for physical damage (collision and comprehensive coverage), but you still need to carry liability coverage on the car.

Regardless of the auto insurance you carry, you need to be financially responsible for any damage your car may cause.

Tags: advice, auto insurance, automobile

Reader’s Question:

What is the extent of a resident relative’s insurance coverage? When it comes to Personal Injury Protection, who is considered a resident relative?

Alex

Denver, CO

Basically, the definition of a “resident relative” can differ depending upon state laws and the terms of an auto insurance policy. Colorado defines a resident relative as a person who at the time of an accident is related by blood, marriage or adoption to the named insured or resident spouse, and who resides in the named insured’s household, even if temporarily living somewhere else. Any foster child or ward who usually resides within the named insured’s household, can also be considered a resident relative.

As to the resident relative’s Personal Injury Protection (PIP) coverage, this will also depend upon your state’s definition of a “resident relative” and the term of your policy regarding coverages and exclusions. In general, a child who lives with his parent is normally considered a resident relative and will be covered by his parent’s PIP coverages. If the child moves out and is living somewhere else, then he is no longer considered as a resident relative and will not be covered under his parent’s PIP coverage.

PIP coverages may not extend to a resident relative if he has his own insurance policy but then again, this will still depend on state laws and insurance policy’s terms. Check with your CO insurance regulator to find out about your state laws with regard to resident relatives. If you have any questions regarding the terms of your policy and exclusions, specifically the PIP portion, call your Flint, CO agent for explanations and additional help so that you can understand your coverages fully.

Tags: auto insurance, automobile, car insurance

Reader’s Question:

Is it possible to be married and still be added on your parent’s insurance?

Lisa

Gulfport, MS

If you have been married recently it is most likely that you and your spouse no longer resides with your parents. If this is the case then normally the parent’s insurer would not want to cover you any longer since you now live with your spouse in a separate residence and not in the same household as any parents.

Each state and insurance provider has their own guidelines and rules regarding car insurance so you, your spouse and the parents involved will need to check for sure about if either of you can be kept on their insurance policy.

When you get married and move out on your own normally you will both need to get a separate auto insurance policy to cover your cars together in both of your names. If you own multiple vehicles then you may be able to get a multi-car discount.