Reader’s Question:

I want to give my parents a new car for their 25th year anniversary, but I want to know how I could cut costs on their automotive insurance since they are both already senior citizens. We live here in New Hampshire. Can anyone give me some advice?

Tom

Manchester, NH

Tom, you are such a sweet kid to make this gesture for your parents’ 25th wedding anniversary. And since you are a sweet child who reminds me of my own kid, I am going to help you out with your problem.

Automotive insurance policies can be quite costly at times, depending on the profile of a person. Several factors have to be considered in pricing, like driving record, credit history, gender of the person applying for automotive insurance, etcetera. So, knowing information about how automotive insurance works would help you greatly in lowering your expenses.

Anyway, here are some ways to reduce what you are going to pay for your parents’ automotive insurance.

First, I suggest that your mother be the one to carry the automotive insurance that you would be applying for. This is because women are generally considered less hazardous on the road. Statistics show that men are greater risks on the road than women. It is for this fact that automotive insurance companies are more open to the idea of giving discounts to female drivers.

Now, your mother’s being a senior citizen, partnered by the fact that she is a female driver, is going to further lower the automotive insurance premium. Why? Because senior citizens are entitled to a lot of discounts. You should definitely take advantage of these discounts.

As final words, all I can say is that there still are a lot of ways to further lower automotive insurance prices. We just have to know how the industry works and how we could use our knowledge in reducing what we have to pay for. Just go online and ask for instant quotes from different automotive insurance companies. This service if for free, and through this, I am quite sure that you would find the best cheap automotive insurance that would best fit your needs. You could also contact some independent automotive insurance agents there in New Hampshire who are experts on this matter.

Tags: auto insurance policy, senior car insurance, women car insurance

Reader’s Question:

My girlfriend has an insured car here in California, which I drive occasionally. Will her auto insurance company cover it if I get involved in an accident?

Matt

San Francisco, CA

In most cases, an existing auto insurance policy covers your incidental and temporary use of the car. Other companies do not have this, though. They will only cover those listed under the policy. So, it is best that your girlfriend calls her local auto insurance agent in California.

If you are not covered, then it would be best to have your name listed under your girlfriend’s policy. Or you may also opt to purchase your own non-owner’s insurance policy. But this may probably cost more than adding you to her current coverage.

It is also important to read and review what type of coverage your girlfriend purchased for the car. Since California only requires its motorists to carry the minimum liability insurance, and if your girlfriend indeed only has this coverage, then your medical and repairs costs will not be covered if you were responsible for an accident. This is because minimum liability only covers for treatment of bodily injuries and damages sustained by the other motorist’s car.

This is why collision and comprehensive insurance is necessary though not a requirement in California. This will cover for medical care and car repair of the insured following an accident. It is advisable that your girlfriend add your name to her policy. It would also be wise to add more coverage in the policy. This will consequently increase her premiums, so you might want to contribute a portion for the cost of insuring a car that you also use.

Tags: auto insurance coverage, collision insurance coverage, comprehensive insurance coverage, liability insurance, non owners insurance

Reader’s Question:

I have recently moved to Texas and am planning to buy a car. Do I need to have automobile insurance policy before I can apply for a Texas Driver’s License?

Bill

Austin, TX

Yes, you have to have an automobile insurance policy before you can apply for a Texas Driver’s License. People applying for a Texas Driver’s License are required to present proof of automobile insurance coverage. Texas traffic laws require motorists to shoulder expenses for the accidents they get involved in. Texas residents meet this by availing of an automobile liability insurance policy. Automobile liability insurance pays for the costs incurred after an accident. These include hospitalization expenses to treat injuries, for you or the other motorist. Automobile insurance liability coverage also shoulders the cost of repairs done or replacement of the other motorist’s car. You must have adequate liability insurance to pay up to $25,000 in medical expenses for one person or up to a total of $50,000 in medical expenses for everyone injured in the accident. You also must have a minimum of $25,000 automobile liability insurance coverage for repairs or replacement of the other party’s car. Vehicle repair or replacement and medical expense can be very costly. For that reason, minimum automobile liability insurance might not be sufficient to cover your obligations if you are responsible for a serious accident. It would be smart to avail of a higher automobile liability insurance coverage, although this may result in a higher policy premium.

Tags: auto insurance coverage, auto insurance premium, car insurance law, liability insurance