Will Driving a Small Car Increase My Auto Insurance Rates

Reader’s Question:

Is it true that I will pay more on my auto insurance if I drive a smaller vehicle? What other things should I know about that could cause me to pay higher rates?

Lillian

Ann Arbor, MI

Excellent question! First of all, yes it is quite possible for you to get charged higher auto insurance on a smaller vehicle. Everyday physics would tell you that in a collision between a smaller vehicle and a bigger one, the latter will always win. Passengers on a smaller car would have a higher risk of death or injuries in this case, even with a ton of safety features in place. This higher risk is what causes people to get more expensive auto insurance quotes from insurers.

Other things that can cause you to pay more on auto insurance:

1. Poor Credit Rating - Those with poor credit tend to file more claims and get into more accidents (statistically speaking). This increases the risk and therefore the rates.

2. Unsatisfactory Driving History – Getting into more accidents or collecting traffic tickets is probably the quickest way to skyrocket your rates.

3. Annual Mileage – The more you are on the road, the higher the risk of getting into a car accident.

4. Too Much Claims – Claims indicates how frequently you get into car accidents. The more you file the more you’re telling your insurer that you are a riskier driver.

I highly recommend you do as much auto insurance quote checks as you can. Use online auto insurance comparison websites to do this easily and quickly so you can get the best offers.

Do I Need Auto Insurance To Get Texas Drivers License

Reader’s Question:

I have recently moved to Texas and am planning to buy a car. Do I need to have an auto 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. Auto 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 get higher auto liability insurance coverage, although this may result in a higher policy premium.

If Family Member Drives My Car Are They Covered Under My Insurance

Reader’s Question:

Just a theoretical question. What if a family member drives my car, this family member is not listed in my policy, and then he has an accident? Will he or she be covered by my insurance policy?.

Janice

Kenosha, WI

Janice, this is when the importance of thorough reading comes in. It’s not fun reading them, but read the fine prints anyway. Auto insurance companies have mastered the art of writing fine prints, and we should learn to master the skill of reading it. There really is no general answer to that question. Some auto insurance company would only cover the ones listed in the policy, the ones you acknowledged, while others would automatically insure immediate family member.

There are auto insurance companies that would cover any one that you, the primary insured, allow to drive the car. To avoid scenarios like this, it is best to make sure that you include the usual drivers of your car in your policy. If possible, include your buddy that usually drives you home when it’s not safe for you to drive. You need to check with your auto insurance company and be sure about the details, check the inclusions and the exclusions, etc.

If you inform your insurance company that a member of your household, for example, will not drive the car, they will have you exclude that person. Let this remain a theoretical question. Be very mindful of your insurance policy and always be safe in Kenosha, WI.

How Much Will Auto Insurance Increase After 1 Accident

Reader’s Question:

How much does your auto insurance rise after your 1st accident? I am insured in Ames, Iowa.

Naomi

Ames, IA

The amount of an car insurance increase in insurance rate after your first accident will depend on various factors such as state law and your insurance provider’s rating plan in Ames Iowa so it is difficult to provide an actual average amount.

If you have had a good driving history, and you have been with a particular insurer for more than 5 years, there are some auto insurance providers that will not increase your car insurance rates if you are found to be at-fault in a relatively minor car accident.

If instead you were drunk driving or were racing on the street and got involved in an accident, you are likely going to be obtaining a big increase in your auto insurance premiums. There could be severe legal and insurance consequences if there is a major accident and you are the at-fault driver with serious bodily injury . There could be a dramatic rise in car insurance rates or even a termination of coverage, subject to state law.

Penalty For a Minor Driving Without Auto Insurance

Reader’s Question:

What is the penalty for a minor driving without an insurance and got involved in an accident? Am I only required to carry an sr22?

Frank

Thank you for asking Frank.

Being involved in an accident while driving under the influence (DUI) and without insurance varies from state to state. The penalties for these type of violations may include fines, jail time, community service, vehicle impoundment, license and license registration suspension.

The penalties can be far more serious if you got involved in an accident and do not have insurance. You may have to comply with the state’s law of financial responsibility (SR22, SR22s, SR16) including having to pay for any injuries or damages out of your own pocket.

As a minor these types of violations may allow your state’s licensing department to delay your driver’s license application. In addition to that these violations will likely go on your driving record. Even being a minor without a license does not necessarily mean that your state has not started a driving history to record these offenses.

Goodluck!

MariCAR