Reader’s Question:

I have GEICO as my car insurance provider here in Memphis, Tennessee. I haven’t talked to them yet but I’m planning to bring my vehicle overseas. Will I still get car insurance coverage?

Anthony

Memphis, TN

Depending on who your car insurance provider is you may or may not get the same car insurance coverage you have there in Memphis, Tennessee when you bring your vehicle abroad. Overseas auto insurance is a little bit more complicated. Not all U.S based auto insurance provider have partnerships or agreements abroad to extend your insurance when traveling. Also policies differ by country so if your car insurance provider does have affiliates, or says they could extend your car insurance coverage once your vehicle lands foreign soil, some of your coverages may change such as your Comprehensive Insurance coverage, where they may not be able to replace or reimburse you if your car gets stolen or damaged beyond repair. Your insurance premiums may also rise or maybe translated into the local currency which may or may not prove beneficial for you while in that country.

GEICO is one example of a car insurance provider that could provide adequate and convenient car insurance protection for your vehicle once you do decide to bring it out of the country. They have offices and affiliates in over 200 countries where they can arrange for car insurance coverage. Be sure to discuss this matter with your current auto insurance provider before you decide on taking your vehicle abroad. Also, regardless of where you take your car be sure that your insurance coverage would still have enough Collision Damage, Property Liability and Bodily Injury liability as well as Personal Injury Protection coverage.

Tags: auto insurance

Reader’s Question:

What is a Loss Damage Waiver form and what does it do? My Car Insurance agent here in Allentown, Pennsylvania suggested I get one since they said my car insurance policy might not be able to fully cover me if I get in a car accident driving a rental car.

Luke

Allentown, PA

A Loss Damage Waiver form (LDW), which could also be known as Collision Damage Waiver or Optional Vehicle Protection, is a type of temporary auto insurance that protects or “waives” car rental customers from financial liability that could arise as a result of loss, damages, or theft by the renter to the vehicle that was rented. A Loss Damage Waiver form can also exempt the said customer from having to pay the daily car rental fee if the said car is being repaired and is unusable during the rental period. This usually costs around $9 to $20 daily, depending on the type of vehicle being rented.

If your car insurance agent tells you to purchase one, then your policy either has no provisions or clauses of extending your comprehensive and collision insurance coverage towards any other vehicle other than the one you own. This type of policy is actually very good for those who do not have any form of car insurance and just wishes to use the rental vehicle for short periods of time.

You also need to know that just because you have LDW doesn’t mean you can expect the car rental service to pay for any hospitalization bills or expenses to treat injuries. You may need to purchase some other type of insurance from them if you don’t want to be liable for any medical or legal expenses resulting from a car accident while driving the rental vehicle.

Tags: auto insurance

Reader’s Question:

I’m staying here in Brownsville, Texas, and I plan to rent a car instead of driving my own all the way from Minnesota while looking for a job. What should I know before purchasing insurance from a car rental service?

Abby

Brownsville, TX

First, you would only want to purchase car insurance coverage from a car rental service if, 1.) You don’t have personal car insurance coverage, 2.) Your car insurance policy doesn’t extend coverage to any other vehicle you drive other than your own, or 3.) Your current car insurance providers does extend coverage but has very limited or minimal protection or coverage. You would also want to understand the scope and limitations of the rental car insurance being offered by the prospective auto insurance provider there in Brownsville, Texas.

Once you decide that you would want or need car insurance for a rental vehicle then heres what you can expect to purchase from your the car rental service:

Loss Damage Waiver - This is not technically an insurance but rather more of an agreement between you and the car rental company that in the event the vehicle you are renting gets damaged beyond repair or is stolen. This form basically relieves you of the financial obligation to repay the rental company for the loss of the vehicle. This can also suspend the daily payment you make on the rented vehicle in the event the said vehicle could not be used due to repairs. This usually comes around as an extra $10 -$20 daily.

Liability Coverage – Since most states have financial responsibility laws mandating at least a minimum amount of coverage for drivers, your car rental service might also offer you additional temporary insurance coverage. However you may forgo getting additional insurance if the liability coverage of your insurance is already adequate or if your credit card provides car rental accident insurance.

Tags: car dealer, car insurance

Reader’s Question:

I’m moving to Waterloo, Iowa within the next six months and I do want to bring my car with me there after my current car insurance policy expires. Are there any minimum car insurance coverage limits in Iowa that I should be aware of?

Jim
Waterloo, Iowa

Yes, under The financial responsibility laws of the state of Iowa, car owners and drivers are required to show at least a minimum capacity to meet financial obligations arising from damages incurred through vehicular accidents or driving negligences. The most typical of this is auto insurance coverage. For Iowa the minimum legally required amount of auto insurance coverage would fall on the following ranges:

$20,000 – Bodily injury liability insurance coverage per person per accident.
$40,000 – Bodily injury liability for two or more persons involved in one car accident.
$15,000 – Property damage liability insurance to pay for damages to public or private properties per accident.

This is also known as the 20/40/15 rule in car insurance lingo. Other states would have a similar numerical designation for their required amount of car insurance coverage depending on their minimum requirements as well. It is important to realize though that you could easily be sued for, or accumulate damages or expenses amounting to double, even triple, the amounts stated under the minimum Iowa car insurance coverages. It would be a smart move to try to get as high of a coverage as possible, especially on Personal Injury Protection, Collision Insurance, or any other types of Bodily Injury Liability insurance that you can get. These will protect you from paying thousands of dollars in damages and also for legal, medical,and funeral expenses you may be obligated to pay in the event you are found at fault in a car accident.

Reader’s Question:

My car insurance here in Buffalo, New York, recently got canceled. I’m just curious, will the police know I’m driving without any car insurance?

Joe

Buffalo, NY

New York has very strict rules about car owners maintaining adequate car insurance coverage. In your case it will be a very good idea to renew your car insurance policy, or get a new one, as soon as possible. If you get caught driving without appropriate car insurance you can expect to face significant repercussions, not only smearing your driving record, but also cause your car insurance premiums in the future to become significantly higher.

To answer your question, yes, the state of New York will know if you did not get adequate car insurance coverage. Your old insurance provider there in Buffalo is required to report information on all insured customers regarding the cancellation, policy changes, and renewals to the state’s Department of Motor Vehicles (DMV). This is then entered into what is called the Insurance Information and Enforcement System (IIES) which keeps track of all of New York’s registered vehicles auto insurance coverage status. Failure to maintain continuous coverage can lead to getting your vehicle registration and your driver’s license suspended, as well as other significant penalties or fees.

So don’t get surprised when a letter arrives at your door one day from the state DMV asking you about you car insurance. It is important that you get in touch with the DMV as soon as possible regarding this. Simple negligence regarding this matter could snowball into a major headache in your part, so save yourself the trouble and get your vehicle insured as soon as possible.

Tags: auto insurance, car insurance rate

Reader’s Question:

I recently moved to Albany, New York, for my new job and I need to know what kind of car insurance coverage I should get to get my car registered and have an NY Plate. Thanks!

Alistair

Albany, NY

According to the financial responsibility laws of the state of New York, all car owners who wish to register their vehicle under a NY license plate are required to obtain or purchase at least a minimum amount of car insurance coverage or present other proof of financial capability that must fall within the ranges set by the state of New York. There is no limitations if you prefer to purchase higher amounts of auto insurance coverages depending on your needs, and as long as you can afford it of course.

This provides you a wide range of choices in picking your auto insurance policy. The three most basic type of insurance coverage that you will need to get would be the ff:

Personal Injury Protection (PIP) a.k.a No-Fault Coverage – covers financial losses incurred by you or a third party injured in or by your vehicle.

Liability Insurance – this protects you from any financial obligations you might incur (as set by the limitations of your car insurance policy) due to damages to property and people as caused by you, or someone else, driving your vehicle.

Comprehensive Auto Insurance – this provides you financial protection for your asset (read: your car) in the event of loss, damages, natural disasters, vandalism or theft, and any other kinds of events not related to a car accident.

These are the basic guidelines on how to begin to search for adequate car insurance for you there in Albany, NY. Take note that most auto insurance companies provides the coverages above as bundles policies as well

Tags: auto insurance, car

Reader’s Question:

Hi! I got a new car for graduation here in Manchester, Connecticut, but I still want to use my older car and keep insurance on it. A friend suggested I increase my deductible to lower my car insurance bills. Is this a good idea?

Palmer
Manchester, CT

Increasing your deductible does have the potential of saving you money on your car insurance bills, especially in the long run, however, please do consider a few things first before doing so: The actual cash value or the price tag of your car and the actual amount of deductible you will have to pay the insurance company to process a future claim.

Too high of a deductible might make it prohibitively expensive to file an auto insurance claim, or the difference between your car’s worth and the actual deductible might be so little it might not make good sense at all to raise your deductible, just to shave a few dollars off your car insurance bills there in Manchester, Connecticut. Finding the right balance between your budget, your car’s value, and the probability of you actually filing a claim in the future is the key here.

If you have a brand new or expensive vehicle then you might not want too high of a deductible. Statistics show that newer vehicles tend to be involved in car accidents, vandalism, or get stolen more frequently so you want to avoid a big crunch if you do need to file for insurance. Likewise, if you have an older vehicle, with some wear and tear here and there but otherwise still in good shape, you may choose to just shoulder the expenses of having minor fixes or lower your collision coverage and accept a higher deductible to save you money on auto insurance bills.

Tags: advice, auto insurance

Reader’s Question:

Is it true that being a good student entitles you to get a discount on car insurance rate in New Haven, Connecticut? I am a teen driver and I love studying. I hate parties so I often stay at my room during the night studying.

Olivia

New Haven, CT

Yes, you are definitely correct.

In general, car insurance companies offer discount to good students. I have a cousin here in New Haven, Connecticut who is getting a discount on her auto insurance rate. Well actually, it’s her mom who is getting a discount since she is under my aunt’s policy. According to her, the reason why they qualify for a discount is because car insurance companies think that if you are a good student then you are a better driver.

Also, I think she said something like since she is a good student, she is responsible in everything that she does and would not drive recklessly. Also, my cousin told me that if you are a good student, that means you always stay at home instead of going out to party just like what your doing - just studying at night. But for getting a good student discount, she needs to have a B average or better.

I hope I was able to help you. Ill ask my cousin for more information about this. Oh by the way, she told me to ask my car insurance agent if I have other questions about my car insurance rate. I guess, you can also ask you car insurance agent in New Haven, Connecticut.

Tags: car insurance discounts, student car insurance, teen car insurance, young driver insurance

Reader’s Question:

I am a new driver in Kansas City, Kansas. I will be buying my first car soon and I’m doing some research on how I can save on car insurance rates. I heard that getting an expensive car will assure me of higher car insurance rate. Why is that? Can anyone help me with this?

Kitty

Kansas City, KS

Sure Kitty. By the way, congratulations on your (soon to be) first car.

You are correct. Since you will be buying your first car, I would say take into consideration the value of your car. If you wanna save on your car insurance rate, then buying an inexpensive car should be the first on your list. As you see Kitty, getting sports car or any fancy car only means paying so much on your auto insurance rate. The logic behind this is very simple. If you are driving an expensive car and you got involved in a car accident how much cost is involved to repair that car? I bet your answer is way beyond our imagination. Car repairs could go as much as thousands of dollars. And not only that, if you are driving an expensive car, there is a bigger chance that it is likely to be stolen. So, car insurance companies will surely set a higher rate for you auto insurance.

For more information about car insurance rates you can use this website to get auto insurance quotes in Kansas City, Kansas.

Tags: auto insurance quotes, car insurance discounts, car insurance online

Reader’s Question:

I know that driving record is one the factors that affect a person’s car insurance rate. I am from North Hempstead, New York. What exactly does NY DMV driving records include?

Jimmy

North Hempstead, NY

Hi there Jimmy!

The New York Department of Motor Vehicles (DMV) records include the following information:

1. Driver Abstract
2. Registration Abstract
3. Title Abstract

The driver abstract includes all information about the driver like name, address, date of birth, class of driver’s license, driving restrictions if applicable, status of the license, expiration date of the license, and all moving violations including suspensions or revocations of license.

Meanwhile, the registration abstract include information about the car or vehicle the owner uses. This contains the name and mailing address of the registered car owner and also the date of expiration of the registration.

Lastly, title abstract also includes name and mailing address of the vehicle owner and the present lien.

For more information about your driving record, you can check with the New York DMV. Also, don’t forget to be very extra careful whenever you drive, to avoid any increase on your car insurance rate.

Tags: auto insurance, auto insurance quotes, car insurance online