There are a lot of things you need to know before you agree to an auto insurance policy-above and beyond what it's going to cost you! When you work in the insurance business you see hundreds of people asking hundreds of questions every day. Here's a peek at the most commonly asked questions and the information you need to know before you sign on the dotted line for an insurance policy of your own.
1) How do I save money on my auto insurance?
Saving money on your auto insurance isn't as difficult as most people believe it is. You don't have to be a miracle worker, or have some deep, insider knowledge of how the insurance system works. All you have to do is keep your driving record clean, sign up for a driver's improvement class every now and then, keep your credit rating on an even keel, pump up your car's safety and security features, talk to your agent about discounts and check the information published by the Highway Data Loss Institute before you buy a new car. Oh, and don't be afraid to shop around! If you do all of these you can save 20% or more on your auto insurance without even breaking a sweat.
2) Do I have to have additional insurance for my teenager, even though they only have a learner's permit?
As soon as you have another driver in the house who's going to be getting behind the wheel of your car you have to make sure they're insured. Your insurance company doesn't care about who's in the passenger seat, just who's in charge of the gas.
3) Am I covered by their insurance if I drive my parents'/friends'/boy/girlfriends' cars?
Things happen. Your sister can't get to work, you break your ankle playing softball, somebody has a little too much to drink and needs to hand over their keys. Auto insurance companies understand that. That's why most of them have a clause in your coverage that covers "uninsured" (i.e. not included in your insurance policy) drivers when they're behind the wheel of your car. Most companies do require that the driver be at least 25 years old and have a valid driver's license.
4) Does my auto insurance policy follow me if I leave the country?
Whether you're an avid traveler or a first time flyer, keeping your vehicle insured when you're out of the States can be a major issue. Some insurance companies offer excellent international coverage. Some don't. Some countries will accept U.S. insurance. Some won't. (Mexico, for example). It all depends on who your insurer is and where you're going. You may find it's easier to leave your auto insurance stateside and pick up a new policy through your rental agency when you get where you're going.
5) Do I have to have a license to insure a car?
People laugh at this one, but you'd be amazed at how many car owners there are out there that don't have a valid license for one reason or another. The good news is, your insurance company doesn't require you to have a license to buy a policy. They'll happily sell you coverage so that you can take care of getting the title, tax and tags for your car. You just have to remember not to drive it once they get there!
