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At some point, you might end up with a vehicle that just sits in your driveway or garage. Maybe it’s a sports car that you drive once a year. Or a clunker you’ve been meaning to fix up. Or a car your child left behind when she went to college. Do you have to get auto insurance for a car that’s never on the road? The answer is “yes.” But there are some ways to minimize how much it’ll cost you.
For more than 10 years, California’s Low Cost Auto Insurance Program (CLCA) has been providing auto insurance coverage for those who otherwise wouldn’t be able to afford it. In October 2011, Gov. Jerry Brown signed a new law that should make it much easier for low-income drivers to get this special coverage — by making it available online.
When you get into a friend’s car, chances are you don’t ask to see a copy of his auto insurance policy. But what if that friend were to get in an accident? Would your injuries be covered? Here’s a look at what options passengers have — and what kinds of coverage your driver would need to have to protect you.
It may seem silly that making late payments on your favorite department store credit card could affect how much you pay for auto insurance — but it might. Insurance companies use your credit history to calculate an insurance score, which helps shape your insurance premium. Why? Simply put, your credit score gives insurance companies an understanding of how responsible you are about debt. And their research has shown that financial responsibility translates into responsibility behind the wheel.
Knowing you have auto insurance can give you peace of mind. But when was the last time you actually looked at the policy you keep tucked away in your car’s glove compartment? And are you sure you’re covered for everything that could go wrong on the road? Here are some types of coverage your policy might include — and some you might want to consider.
Business auto insurance needs to cover more than personal auto insurance does. While a personal policy covers you and your car, business auto coverage has to cover vehicles that are owned by the business, along with other scenarios like employees using their own cars for business and someone driving a company car home.
You have a clean driving record. But what if your spouse doesn’t? Or what if your young adult child (who still lives at home) has a proven tendency to get in accidents? Your good auto insurance karma would be canceled out by the less-than-stellar driving records of those who have access to your car.
In such cases, some drivers turn to what’s called a “named driver exclusion.”
Nearly 1 million people from northern states escape to Florida during the colder months, according to a 2004 study by the University of Florida. New Yorkers represent the largest percentage of these so-called “snowbirds,” at just over 13 percent, while residents of Michigan, Ohio and Pennsylvania (all states with famously harsh winters) also flock to the Sunshine State in large numbers.
But these temporary residents fleeing the cold could end up in hot water if they don’t follow Florida’s auto insurance laws. Here are some tips for making sure you have constant coverage year-round.
As Americans try to cut household spending in a lagging economy, auto insurance is one expense that might end up on the chopping block. In fact, the economic downturn in 2008 corresponded with an uptick in uninsured drivers, according to the Insurance Research Council.
Going uninsured affects your fellow drivers, who will have to turn to their own uninsured motorist coverage — or their own bank accounts if they don’t have uninsured motorist coverage — if you cause an accident. But the decision to cancel or not renew your coverage also affects you. Trying to save a little money now is likely to cost you more in the long run.
Whether driving elderly patients to medical appointments or delivering meals to families in need, volunteer drivers for nonprofit organizations perform a much-needed service for those who don’t have their own wheels. Volunteering time to help others a selfless service — but no good deed goes unpunished for nonprofits if their volunteer drivers cause auto accidents. To avoid any misunderstandings, volunteer drivers and nonprofit organizations must be on the same page when it comes to auto insurance.
