Learning about auto insurance is what makes the difference between over-spending on a policy and saving money in every way possible. The more you know, the more you can save. That’s why we’ve put together a frequently asked question page on our site in addition to this article (and many others). No matter what your question is on insuring a vehicle, we have an answer that should save you money.
• What happens if I cancel my policy?
When a driver cancels their policy, they are canceling their coverage to be protected financially by an insurer in the event of an accident. Cancellation can happen either by the policyholder or by the insurer. If they policyholder is moving out of the state or wants to switch to another car insurance company they should cancel their policy, but only when another policy by another company is in place. The starting date of the new policy should be the same date as the cancellation of the old policy. This does mean one day of double coverage, but this is better than not having insurance coverage for even just a few hours. If something were to happen during those few hours of no coverage, the owner of the vehicle would have to pay for any damage that could occur.
Drivers who cancel their policies can be reported to the state’s Department of Transportation by the insurer, which is sometimes required by law. Each state has a different way of keeping track of every driver and knowing whether or not they have coverage. The new insurer would need to contact the state and let them know of the new policy in effect.
• Do I need a driver’s license to buy car insurance?
The answer to this question depends on whether or not you own a vehicle. Because you do not have a driver’s license, you should never operate a vehicle. Having a driver’s license means the state has approved you to drive, and without one, you cannot legally drive. If you own a vehicle and it is registered, you will need insurance. In most states you cannot register a vehicle without proof of insurance first. Perhaps you own the vehicle but allow a close friend or family member to drive it. This is when you would need insurance on the vehicle. Different types of insurance will cover different scenarios. Some types will only cover the other party involved in the accident and will not pay for damages done to your vehicle. There are coverage options that will only pay for the other party’s bodily injuries and not the people who were in your car at the time of the accident. Even if you do not have a driver’s license but you own a vehicle that is driven by other people, you need insurance. If you do not have a driver’s license (which means you do not drive) or a vehicle, you may be able to purchase medical coverage on an auto insurance policy to help pay for any injuries you may sustain as a passenger in someone else’s car.
• Must I purchase auto insurance?
In most cases, yes. However, each state has their own requirements about what can be thought of as a form of financial responsibility. In some states, instead of purchasing an auto insurance policy, the driver may turn over some $30,000 to the state department, which recognizes this money (whatever the state’s minimum amount may be) as that driver’s financial responsibility. This financial responsibility shows that the driver can pay for any damages they cause while driving. Not every driver can hand over tens of thousands of dollars (or another suitable form) for their financial responsibility, so they purchase auto insurance instead. If a driver believes they have the capability to give money to the state and not purchase a policy, they can contact their state’s Department of Transportation and follow their guidelines.
People who do not have a driver’s license do not always need to purchase a policy, nor does anyone who does not own a vehicle. Someone who drives other people’s vehicles but does not own their own can (and probably should) purchase their own policy, just in case they happen to damage one of those cars. Then they would have a way to pay for those damages without having to reach into their own pockets.
• Is rental car insurance part of my credit card program?
A lot has changed over the last few years regarding credit cards and their programs. At one point, a driver who paid for their rental car with their credit card got rental car insurance through their credit card company. This is not always the case now. Contact your credit card company and find out whether or not they still continue this tradition. If not, know that the rental car company will offer you insurance for the vehicle while you have it, but it is quite expensive. Feel free to contact them and get the price ahead of time. Then, you can contact your current auto insurance provider and ask how much they would charge you to add rental car insurance to your policy. You may find that your insurer doesn’t offer this option at all, or they offer it at a much discounted price compared to the rental car company’s policy. It’s worth calling around and comparing prices to see where you can save money.
• I’m a high risk driver. Can I save on car insurance somehow?
Depending on why you’re a high risk driver, there is a possibility you can save a little now and save more later. High risk drivers are usually placed in this category because either they are new drivers or they have a driving record full of tickets and/or accidents. Compare quotes for a policy from many local insurers by using our quote comparison tool. Some companies cater to high risk drivers because they know other companies find them too risky. Utilize every discount you can possibly be eligible for, and work towards those you are not eligible for yet (like the good driver discount).
For more auto insurance questions, search through our other articles on various topics regarding auto insurance. OnlineAutoInsurance.com strives to help every driver save on their car’s coverage.
• What happens if I cancel my policy?
When a driver cancels their policy, they are canceling their coverage to be protected financially by an insurer in the event of an accident. Cancellation can happen either by the policyholder or by the insurer. If they policyholder is moving out of the state or wants to switch to another car insurance company they should cancel their policy, but only when another policy by another company is in place. The starting date of the new policy should be the same date as the cancellation of the old policy. This does mean one day of double coverage, but this is better than not having insurance coverage for even just a few hours. If something were to happen during those few hours of no coverage, the owner of the vehicle would have to pay for any damage that could occur.
Drivers who cancel their policies can be reported to the state’s Department of Transportation by the insurer, which is sometimes required by law. Each state has a different way of keeping track of every driver and knowing whether or not they have coverage. The new insurer would need to contact the state and let them know of the new policy in effect.
• Do I need a driver’s license to buy car insurance?
The answer to this question depends on whether or not you own a vehicle. Because you do not have a driver’s license, you should never operate a vehicle. Having a driver’s license means the state has approved you to drive, and without one, you cannot legally drive. If you own a vehicle and it is registered, you will need insurance. In most states you cannot register a vehicle without proof of insurance first. Perhaps you own the vehicle but allow a close friend or family member to drive it. This is when you would need insurance on the vehicle. Different types of insurance will cover different scenarios. Some types will only cover the other party involved in the accident and will not pay for damages done to your vehicle. There are coverage options that will only pay for the other party’s bodily injuries and not the people who were in your car at the time of the accident. Even if you do not have a driver’s license but you own a vehicle that is driven by other people, you need insurance. If you do not have a driver’s license (which means you do not drive) or a vehicle, you may be able to purchase medical coverage on an auto insurance policy to help pay for any injuries you may sustain as a passenger in someone else’s car.
• Must I purchase auto insurance?
In most cases, yes. However, each state has their own requirements about what can be thought of as a form of financial responsibility. In some states, instead of purchasing an auto insurance policy, the driver may turn over some $30,000 to the state department, which recognizes this money (whatever the state’s minimum amount may be) as that driver’s financial responsibility. This financial responsibility shows that the driver can pay for any damages they cause while driving. Not every driver can hand over tens of thousands of dollars (or another suitable form) for their financial responsibility, so they purchase auto insurance instead. If a driver believes they have the capability to give money to the state and not purchase a policy, they can contact their state’s Department of Transportation and follow their guidelines.
People who do not have a driver’s license do not always need to purchase a policy, nor does anyone who does not own a vehicle. Someone who drives other people’s vehicles but does not own their own can (and probably should) purchase their own policy, just in case they happen to damage one of those cars. Then they would have a way to pay for those damages without having to reach into their own pockets.
• Is rental car insurance part of my credit card program?
A lot has changed over the last few years regarding credit cards and their programs. At one point, a driver who paid for their rental car with their credit card got rental car insurance through their credit card company. This is not always the case now. Contact your credit card company and find out whether or not they still continue this tradition. If not, know that the rental car company will offer you insurance for the vehicle while you have it, but it is quite expensive. Feel free to contact them and get the price ahead of time. Then, you can contact your current auto insurance provider and ask how much they would charge you to add rental car insurance to your policy. You may find that your insurer doesn’t offer this option at all, or they offer it at a much discounted price compared to the rental car company’s policy. It’s worth calling around and comparing prices to see where you can save money.
• I’m a high risk driver. Can I save on car insurance somehow?
Depending on why you’re a high risk driver, there is a possibility you can save a little now and save more later. High risk drivers are usually placed in this category because either they are new drivers or they have a driving record full of tickets and/or accidents. Compare quotes for a policy from many local insurers by using our quote comparison tool. Some companies cater to high risk drivers because they know other companies find them too risky. Utilize every discount you can possibly be eligible for, and work towards those you are not eligible for yet (like the good driver discount).
For more auto insurance questions, search through our other articles on various topics regarding auto insurance. OnlineAutoInsurance.com strives to help every driver save on their car’s coverage.
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