What can listed drivers do?

When adding a person to a car insurance policy, the policyholder has two options: The new driver can be listed as a co-owner of the policy, or he can be added as a driver on the policy. Many married couples choose to carry joint policies, which list both members of the couple as policyholders. This allows either person to make changes to coverage, add vehicles, make payments or cancel the insurance policy. A claims settlement check can be made out to either named policyholder.

Adding a driver to the policy does not allow that individual full access to the policy itself. Listed drivers are able to call the insurance company to file claims, schedule inspection appointments and make repair arrangements. They can discuss the coverage on a policy, but they cannot have settlement checks made out in their names.

Why should I add a driver to my car insurance?

If a driver is not listed on your insurance policy, he or she cannot discuss coverage or make any inspection arrangements for a claim. The policyholder or another named insured on the policy must be present for any telephone communications regarding the claim. This may not be possible in emergency situations, such as if the policyholder is in the hospital. Because of this, it’s important to always keep at least one other person listed on your insurance policy.

Some car insurance companies also require that a driver be listed on the policy in order to operate the vehicle. With this type of policy, all unlisted drivers are considered to be excluded and any accident those drivers cause will not be covered by insurance. Even if your policy does not exclude unlisted drivers, it’s a good idea to add anyone with frequent access to the vehicle as a listed driver.

Car insurance companies base premiums in part on the driving history of everyone who has access to a car. If a person drives a vehicle frequently but is not listed on the policy, this could be considered insurance fraud and may lead to the policy being canceled in some situations.

How do I add a driver to my policy?

Adding a driver to an existing insurance policy is very easy. You simply call either your agent or the customer service support number for your insurance company and request to add a driver. After providing the driver’s name and contact information, he or she will be added to the policy effective immediately.

If a driver is added partway through a policy term, the insurance company may wait until the policy’s renewal date to change the premiums. The insurance premiums may increase if the new driver is under 25, has a poor driving record or a history of traffic violations or DUIs.

Depending on your family’s needs, it may make sense to purchase two separate policies, with the driver added to one policy but excluded from the other. This would allow the driver free access to one vehicle but none of your other cars. This may be a more affordable option for some families, or it could be more expensive; be sure to check with your agent to see which option is best for your needs. If you do choose to exclude someone from any one of your insurance policies, be sure that he does not drive the excluded vehicle; this would lead to a claim denial and potential policy suspension if an accident were to occur.

By taking the time to research his options, a person can make the best choice regarding adding drivers to his insurance policy. Whether adding a driver, excluding a driver or adding a co-owner to the policy, you can customize your car insurance to suit your individual needs.

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The reason that car insurance companies ask how a vehicle is used is that certain types of use create additional risks. If a car or truck is being used heavily for work, that vehicle may need to be covered by a commercial policy rather than a private insurance policy.

Commercial Auto Insurance vs Personal Use Insurance

If the primary function of a vehicle is commuting to and from work or driving for pleasure, a personal auto policy is sufficient. Vehicles that are used every day for heavy driving due to a job may require a commercial policy, however. For example, if you use your vehicle to make frequent daily house calls for clients, that vehicle will spend more time on the road than one used only for regular business commuting; the extra time spent traveling increases the vehicle’s likelihood of being involved in an accident.

There are several other reasons that a vehicle may require a commercial or business policy:

– If the vehicle is used in a taxi service
– If the vehicle is a delivery car for a company
– If multiple people drive the vehicle for business purposes
– If the vehicle is used to haul goods or supplies
– If the vehicle must be used heavily under adverse conditions, such as off-roading, as part of a job

Because these situations have an increased risk associated with the vehicle, special coverage may be necessary. Even if the vehicle does not require a commercial auto policy, premiums may rise in order to accommodate the added risk associated with using the vehicle for businesses purposes.

The more likely a vehicle is to sustain damage, the more the insurance rates will cost. This is why drivers with a history of accidents pay more for car insurance, and it’s also why certain activities are restricted on regular auto insurance policies. In order to offset the potential cost of claims, insurance companies must raise the rates for vehicles that are most likely to be involved in an accident. If being used for business purposes increases a vehicle’s chance of receiving damage, the policy will be changed accordingly.

Will my car insurance cover my vehicle if I use it for work?

As long as you’ve been honest with your insurance company about the way you use the vehicle, the company should provide the correct type of auto policy. Whether or not the vehicle will be covered in the event of an accident will depend upon the type of coverage included on the policy. For example, a liability-only policy will not cover damage to the insured vehicle regardless of how the auto was being used at the time of the accident.

Assuming that the vehicle carries the correct coverage, any damage caused to the vehicle should be covered as long as the car was being used in a manner consistent with the policy. Certain high-risk behaviors, such as street racing or off-roading, may lead to a claim being denied; otherwise, the accident should be covered whether the vehicle was being used for work or pleasure.

If the insurance company learns that the vehicle is being used for work more often than pleasure or that the vehicle’s use is not consistent with what was reported during the last underwriting review, a new underwriting referral will be generated. At that point, the insurance company will contact the policyholder to confirm how the vehicle is used and come up with an appropriate policy that will meet the driver’s needs.

Being honest with your insurance company is the best way to ensure that your policy will cover everything that it needs to. By understanding your needs, your insurance company can tailor an insurance policy to your situation that will provide the protection that you need.

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Whose Insurance Covers Injuries?

Insurance laws vary from one state to the next, and injury laws are especially state-specific. Because some states handle injuries differently from others, it’s important to understand what state laws may apply in a specific situation and how those laws affect the insurance coverage. Depending on your situation, it may be helpful to hire a lawyer. Personal injury lawyers are well-versed in local insurance laws and can help procure a higher settlement in some cases. Lawyers are not always necessary, however, and the insurance adjuster for a claim should be able to answer any questions you may have about your coverage.

No-Fault Insurance States

Some states are called “no-fault” states. In no-fault states, a person’s own auto insurance must be primary in paying for injuries no matter who caused the accident. You cannot file suit against another person except under certain limited circumstances, and there are limits to what a person can be sued for. These states require all drivers to maintain personal injury protection (PIP) or medical payments coverage in order to register a vehicle. This coverage pays for injuries sustained by a policyholder, listed driver or any resident relatives living with the policyholder.

The majority of states are called “tort” states, and they allow a person to file a claim or lawsuit against another person for injuries sustained in an auto accident. If someone causes an auto accident, his bodily injury liability insurance is responsible for paying the medical expenses for the other parties involved; if the liability insurance is not sufficient to cover the claim, he can be sued for the rest out of pocket.

Are Lost Wages covered under Car Insurance?

For persons living in a no-fault state or who are utilizing their own auto insurance policies for a claim, the PIP or medical payments policy will determine what is covered. Most insurance policies provide PIP coverage with a maximum limit. Whenever a claim is filed, the insurance company will assess the injuries and offer a settlement that includes doctor’s visits, medication costs, pain and suffering, and lost wages. The entire insurance settlement may be paid to the insured person, or the settlement may be paid directly to the doctors.

Not all PIP coverage will pay for lost wages, so it’s important to review the policy details carefully to confirm exactly what can be paid under the coverage. It’s also important to hold on to any receipts for claims-related expenses so that they can be reimbursed if possible.

If you live in a tort state and are filing the claim against another person’s insurance, you may be able to recover lost wages from that person’s insurance company. Be sure to provide proof of employment, the amount of time missed and the total cost of your missed time. The insurance company will review your claim and offer settlement based on the total cost of your medical expenses. The insurance company may offer to pay certain large claims through structured settlements and annuities rather than a lump sum payment, but the final choice is yours whether or not to accept this.

Some states have special laws concerning lost wages or pain and suffering payments. For example, some states will only offer lost wages as part of an insurance settlement to people who have a car insurance policy; they will not pay for injuries received by drivers who are uninsured.

Because insurance laws can become so complex, you may wish to consult with an attorney during the claims process to make sure you understand the laws in your state. You should also never be afraid to ask the insurance adjuster questions about the claims process. By taking the time to understand your rights and the way that coverage applies to your accident, you can be sure to receive the money that you deserve from any claim you’re involved in.

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Whenever you receive a quote for auto insurance, the price quoted will be for either a six month or 12 month term. In most cases, drivers can choose to pay the insurance premium up front or divide the cost into monthly payments. This enables you to buy car insurance with a low down payment and receive insurance coverage immediately.

If you purchase auto insurance toward the middle or end of the month, the first month’s insurance payment will be pro-rated. This means that rather than paying for the entire month, you only pay for the portion after the insurance policy has been purchased. Once the first insurance payment is paid, your coverage will become active.

What are the Benefits of Paying Car Insurance Monthly?

Paying for car insurance monthly is a convenient and affordable option, but it may cost slightly more at the end of the year than if paid for the entire term at once. Most car insurance companies will charge a small processing if you decide to opt for monthly payments. Drivers who have the money available to pay for car insurance one term at a time may be a making a wise decision to pay for it up-front as many providers offer a discount for full payment. This also prevents you from policy suspensions caused by missing or late payments.

If you do opt to pay car insurance monthly, you can agree to an automatic payment by bank draft. This ensures that premiums are paid on time each month as long as there is money in your bank account when the payment hits. Many car insurance companies offer a discount to people who opt for this type of payment plan as an incentive to enroll.

How do I find Affordable Car Insurance?

Whether you’re looking for an entirely new policy or want to switch car insurance companies, shopping for inexpensive car insurance is a fairly easy process. You can begin by comparing car insurance quotes online. Many destinations exist where filling out a short form can provide detailed quotes for your unique profile from multiple insurers at the same time. From here you can compare policy terms, premiums and even review car insurance company satisfaction ratings.

Are there other ways to save money on my car insurance premiums?

Once you’ve settled on a car insurance company then its important to ask about car insurance discounts. Safe drivers often receive a percentage off premiums each year along with good students, drivers with multiple vehicles and more. You can also modify your vehicle with safety or anti-theft devices or agree to keep the car parked in a covered garage at night. Most car insurance companies also offer a discount to customers with multiple policy lines, so you might consider taking out a homeowner’s or renter’s policy with the same insurer as well.

If there are no discounts, you can still save money on your premiums by reducing coverage. Dropping coverage, lowering policy limits or increasing your deductible all result in lower premiums. Anything that will reduce the amount the insurance company would need to pay in the event of a claim will result in lower premiums. Some companies even allow you to provide a target monthly price to your insurance company and the agent will work with you to get your rates as close as possible to that cost.

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There are several reasons that young adults have a higher rate of accidents than older drivers. Teenagers are especially likely to be involved in alcohol-related crashes, possibly because they are afraid of getting caught drinking if they call for a cab or ask for a ride home from their parents. Teenagers and college students are also somewhat more likely to drive without seatbelts, speed or engage in other risky driving behaviors. Additionally, young drivers do not have the experience necessary to train their reflexes and response times to deal with a crisis, so they may not be as skilled at avoiding accidents.

What car insurance discounts are available for student drivers?

Fortunately, there are some insurance discounts available to high school and college students. One discount aimed specifically at young drivers is the good student discount, which rewards young drivers for good grades in school. You can receive this type of discount whether you own your own policy or are listed on your parent’s policy. In some cases, if a parent has multiple children on his insurance, multiple good student discounts could apply.

In order to qualify for a good student discount, you must maintain a GPA of 3.0 or above. This translates into a solid B average. Some companies will offer the discount for being placed in the top 20 percent of the class or being on the school’s dean’s list, but the 3.0 GPA is the most common deciding qualifying criteria for most students.

Each semester, you must send a copy of your transcripts or report card to your insurance company. These will be reviewed and, if you qualify, the discount will be applied to your car insurance. On average, the good student discount will save between 10 and 15 percent off of your auto insurance premiums for the year.

Not all car insurance companies offer a good student discount, but most major providers do. If you already have insurance, you can contact your agent or the insurance company’s customer service department to see if you can obtain this type of discount. If you are purchasing new insurance, you can fill out a quote online; the quote form will ask about any students in the household and their academic record, and provide you with an adjusted rate accordingly.

Why do good students get lower rates?

In some ways, your grades replace your credit score when applying for car insurance. Because most young drivers do not have established credit, car insurance companies gauge a driver’s responsibility by looking at the student’s academic record instead. Good students are generally more responsible and statistically have fewer accidents than those who get poor grades. Good students may also be more financially responsible and thus more likely to pay premiums on time.

What other discounts are available to students?

Whether or not you qualify for a good student discount, you may be able to save money on your car insurance through other means. Most companies will offer a discount for drivers who take advanced driver’s education courses, such as defensive driving. You can also obtain a discount by installing safety devices into your vehicle or agreeing to keep the vehicle parked in a garage or covered carport rather than in an open lot.

After several years of safe driving, your rates will begin to drop. The longer you have an insurance policy and the better your relationship with the insurance company is, the more likely you will be to qualify for discounts. Whenever your policy renews, be sure to ask your company about any additional discounts you might qualify for.

If your rates are still too high, you may wish to change your insurance company. You can begin the search for a new company online by filling out your zip code above to find a list of local car insurance companies and an idea of how much insurance will cost.

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First Party vs Liability Insurance

There are two main types of car insurance coverage: liability insurance and first-party coverage. Liability insurance covers the cost of damage caused to someone else’s vehicle as well as injuries that person sustains in any accident where you were at-fault. First-party coverage, such as collision and comprehensive, pays for the repairs to your own vehicle whenever it’s damaged in a covered loss.

Drivers must carry liability insurance on your vehicle in order to comply with state laws, but there is a choice of whether or not to carry first-party insurance. If you are making payments on your vehicle, you must maintain full coverage auto insurance until the car has been paid off. At that point, collision and comprehensive coverage can be dropped if you wish.

What does Comprehensive Car Insurance cover?

Collision coverage is fairly straightforward: It pays for damages when your car is involved in a collision. Comprehensive insurance is a more catch-all category of insurance and pays for a wide variety of perils such as:

• Flooding, Hail and other damage from Weather conditions
• Auto Theft and Vandalism
• Damage caused by flying or falling objects such as road debris
• Damage caused by an animal
• Windshield and Glass damage (such as cracked glass)
• Fire damage of any kind except that caused by a collision
• Damage from a shopping cart

If you’re not sure whether a certain incident is covered under your collision or comprehensive coverage, contact your insurance company to ask about specific circumstances.

Comprehensive coverage does not have fault assigned to it, so a comprehensive claim should not cause auto insurance rates to be affected as much as a collision would. Comprehensive coverage also is cheaper to add to a policy than collision, and many times has a lower policy deductible.

Do I really need Comprehensive Insurance?

Some vehicles may need comprehensive coverage more than others. For example, if your vehicle is in storage, it might be a good idea to have a comprehensive policy on the vehicle. This will protect the stored vehicle against damage such as rodents chewing the wiring or from weather damage if the garage is caught in a flood or tornado. Most people carry comprehensive coverage on collector cars for this same reason.

It’s also a good idea to maintain comprehensive coverage on your vehicle if it’s at a high risk of being stolen. Certain areas are especially prone to auto theft, such as cities with high drug-related crime rates or those near the Mexico border. If you live in an urban area, protection against theft is a valuable reason to carry comprehensive insurance.

Other drivers choose to carry comprehensive coverage only during part of the year, such as hurricane or tornado season. This protects the vehicle from weather-related damage during the time that the risk is highest, without the full annual expense. If you decide to go this route, make sure to remember to add the coverage back in time for the season’s change; you can only be paid for damage if the coverage was already listed on the policy at the time the damage occurred.

If your vehicle is very old, it may not be worthwhile to carry full coverage insurance since any damage might cause the car to be a total loss. For vehicles under 10 years of age, however, comprehensive coverage is often worth the money. Because comprehensive coverage is so affordable, it won’t make much difference to your policy to add it even if you cannot afford collision coverage.

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Towing Coverage

Most car insurance companies offer some sort of towing coverage. Different companies will handle this differently, however, so you should always check with your insurer to confirm exactly how towing is handled. Some companies are able to dispatch a tow truck to your vehicle no matter where it is and bring it to the nearest body shop. Other companies handle towing through reimbursement only. In these situations, you must pay for the towing yourself and submit the receipt to the insurance company. The company will usually have a dollar amount that they will pay, such as $50 and anything over this limit would not be reimbursed.

You must ask for towing coverage as it’s often not included in regular full coverage auto insurance

Whenever you purchase the coverage, be sure to ask what the limitations are and if it’s handled through reimbursement. If you are not able to purchase a roadside assistance coverage that can dispatch a tow truck to your location, it may be worthwhile to buy roadside assistance from another company.

Towing after a Car Accident

Even if you don’t have towing coverage on your auto insurance policy, your vehicle can still be towed to a repair shop if it’s involved in a collision or other type of covered accident. In this case, the towing is covered under the coverage that would apply to repairing your vehicle. For example, if you are hit by another person’s car and your car is no longer operable as a result, the towing charge would be paid under your collision coverage. If your vehicle is caught in a flood or damaged through another sort of natural disaster, the towing would be paid under comprehensive coverage.

Towing expenses paid under collision or comprehensive coverage are usually handled through reimbursement. They do count toward your deductible, however, so if you pay $100 for a tow truck, that amount will be subtracted from what you owe for your repairs. Many times a body shop will tow the car from the scene of an accident without charging at the time; the towing bill is then added to the total repair cost of your vehicle.

Other Types of Towing Coverage

If your auto insurance company does not pay for towing, you may be able to obtain roadside assistance inexpensively through another company. You might enroll in a motor club like AAA, for example, and pay a low monthly fee for the service. In addition to towing expenses, motor clubs pay for other types of emergency assistance such as changing tires or bringing you gas if you run out.

Some mobile phone companies even offer a roadside assistance program through your phone plan. You can add the coverage to your regular phone bill for a few dollars a month. There will usually be a limit of how many times you can use the service within a certain time frame.

If your regular auto insurance does not have a roadside assistance program, it may be worthwhile to buy coverage through another type of company. Be sure to check with your insurance first, though, so that you don’t buy unnecessary roadside assistance coverage if those services are already offered on your auto policy.

Wherever you decide to obtain your roadside assistance coverage from, you should always keep the phone number for the service in your mobile phone so that you can dial it at any time. It’s also a good idea to print off your membership card and keep it in your vehicle in case you need to call from another phone. By carrying roadside assistance coverage, you can be assured that you can always get your vehicle to safety any time it breaks down or is involved in an auto accident.

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What factors influence auto insurance costs in Texas?

Several factors contribute to the cost of car insurance in any particular area: the weather, the population, the quality of public transportation, the size of the state and its crime rate. Some, such as a location’s weather, are purely geographic; others are directly related to the driving behavior of the state’s population. This means that insurance costs can fluctuate as driving habits change in an area.

One major element in determining auto insurance costs is the rate of uninsured motorists in an area. Whenever a person without insurance causes a car accident, the cost of repairs must be absorbed by the other insurance company. This causes that company to lose money that must then be recovered through rate increases. Areas with a high incidence of uninsured drivers will have higher insurance premiums than those with a low number of uninsured drivers.

Texas has a moderate rate of drivers without insurance, approximately 15 percent. While many areas do have much lower rates of uninsured motorists, Texas has one of the lowest rates in the area; neighboring New Mexico has a 26 percent uninsured rate, and Oklahoma has a 24 percent rate of uninsured drivers.

Another major influence on auto insurance rates is drunk driving. Alcohol-related accidents account for many of the most serious auto collisions each year, so areas with high numbers of DUIs will have high insurance rates to compensate for this risk. Drunk driving is an issue in Texas; it ranks 5th in the nation for drunk driving incidents, trailing behind Hawaii and Montana. In 2008, Texas had 1,463 DUI-related fatalities.

Automobile theft is a concern in Texas. As a state, Texas has the second highest incidence of auto theft in the country; no city in Texas made the top 10 list of most theft-prone cities, however. The state’s proximity to Mexico and large population are the major factors in the high incidence of theft.

Texas Car Insurance Requirements

To register a vehicle in Texas, you must carry liability insurance on that vehicle that meets the state’s minimum limits of liability. You must carry at least $25,000 worth of property damage liability insurance and $30,000 of bodily injury liability per person, up to $60,000. While these limits are higher than minimum insurance limits in other states, it’s a good idea to carry more liability insurance if you can afford it. Serious accidents or those involving multiple vehicles can quickly exhaust your liability limits, and you will be responsible to pay the remainder out of your pocket. This can damage your credit and even lead to your driver’s license being suspended if you are unable to pay for a claim promptly.

You may also wish to purchase first-party insurance such as collision and comprehensive. This type of coverage pays for damage that your vehicle sustains. Full coverage auto insurance is required for vehicles that are leased or financed, and you may wish to maintain full coverage on any new or valuable vehicle that you own outright as well.

Texas also offers uninsured motorist coverage both for injuries and vehicle damage. This coverage pays for an accident caused by another driver who does not have insurance. In Texas, you also have the option of using your uninsured motorist coverage instead of collision to pay for damage caused in a hit-and-run accident. The Uninsured motorist coverage usually has a lower deductible, but doesn’t have to. Because the coverage is designed to replace another person’s liability insurance, it will usually have the same limits as your liability insurance.

Moving to Texas?

Whenever you move to Texas from a neighboring states, your rates may decrease. If your insurance premiums are still too high, you can speak with your insurance agent to see if there are any discounts you might qualify for. Some companies will offer discounts for safe drivers or customers who carry multiple lines of insurance through a single company. You can also usually receive a discount on your car insurance if you install an anti-theft device in your vehicle.

Whether you’re moving to Texas or simply searching for cheaper car insurance, you can begin your search online by obtaining a free insurance quote. Once you’ve chosen a company, you can discuss your policy with the customer service department or a local agent in order to decide on the best coverage to suit your needs.

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Why does my credit score affect my car insurance rates?

Car insurance companies gauge your financial health and responsibility through your credit score. If you have good credit, the company may assume that you will make your premium payments regularly and on time. Insurance companies (like all businesses) prefer customers who provide stable income through consistent payments. The best indicator a company has of your financial reliability is your credit score, at least until you have established a relationship with the company.

People with poor credit may be less likely to have extra money on hand to pay for deductibles or minor car repairs. This could lead to small claims being filed for damage that could otherwise have been paid out of pocket. Car insurance companies prefer to avoid claims for minor damage whenever possible. A claim for $100 uses the same amount of man hours as a claim for $10,000, but it’s much more likely that a person will file several $100 claims in his lifetime. Because small claims are costly to the insurance company, insurers prefer to offer coverage to individuals who have a lower chance of filing multiple small claims. In many cases, this means people with healthy finances who can afford their own minor repairs.

Can I buy affordable car insurance with a bad credit score?

Your credit score is only one small part of determining your car insurance rates. Your driving history and the type of vehicle insured play a much larger role in setting your premiums. If you are a safe driver without any history of accidents or claims, your car insurance rates will typically remain affordable regardless of your credit. After you establish a relationship with your auto insurance company and prove that you are reliable and consistent, your rates may decrease further. In many cases, insurance providers reward loyal long-term customers with discounts.

If you are purchasing a new insurance policy, be aware that the initial quote you receive may be lower than the actual cost of your specific policy. This is because the initial quote you obtain online will be an estimate for a person in your area; it will not factor in your credit and driving history. The insurance company will call you after running a credit check to provide a more accurate quote and set up a policy for you.

How can I reduce the cost of car insurance if my credit score is bad?

If your auto insurance premiums are too high, you can save money by changing the coverage on your vehicle. You may choose to increase the amount of your deductible or lower the limits of your liability coverage. You can also drop extra coverage like roadside assistance or rental reimbursement. The less money your insurance company needs to pay in the event of a claim, the less expensive your premiums will be each month.

Also be sure to ask your insurance company if there are any discount programs you can enroll in. You may qualify for a safe driving discount if you have not had any car accidents. You could also get a discount for having multiple types of policy with a single company or for driving limited miles each year. Your rates are reviewed at the end of each policy term, so your premiums may go down at every renewal if you maintain safe habits.

Once you build up a positive relationship with your insurance company and prove that you are able to pay your premiums on time each month, your rates may begin to decrease. Paying your bill regularly and on time will also help improve your overall credit health, so an insurance policy can help you to repair your credit.

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Why would I need car insurance if I don’t own a car?

There are several reasons why you may wish to purchase an insurance policy for yourself as a driver even if you don’t own a car. You may be a student who only has access to a vehicle during parts of the year, or you could be a person who chooses not to own a car for ecological reasons but still needs to drive during certain emergencies. Whatever the reason, it’s easy to obtain a policy as a driver without having a car.

Whenever you obtain a free quote for insurance online, check to see if there is an option for insurance without inputting a vehicle. If not, you will have to leave that question blank on the form. Once you contact the insurance company, you will want to explain your situation so that you can obtain an accurate quote and purchase sufficient coverage.

Down the line if you choose to purchase a vehicle, you can usually modify your existing insurance policy to add that vehicle. Your premiums will likely change at this point and you may need to change the coverage that you carry in order to fit your needs. Be sure to contact your insurance agent to discuss these changes prior to purchasing your vehicle so that you know what to expect.

What coverage do I need?

Before opting for driver-only insurance, be sure that you do not already have insurance that will serve the same purpose. For example, if you live with someone who does have a car and she lists you on her policy as a driver, you will automatically be covered by her auto insurance even if you do not own a car. This is also true of college students who only live with their parents part of the year; as long as their permanent address is the same as their parent’s address, they would be covered under the parent’s car insurance.

Some homeowner’s or renter’s policies also include coverage for personal liability. This type of insurance protects your assets from lawsuits any time you are responsible for injuries or property damage. Personal liability policies can be extended to cover auto accidents if there is no auto insurance available. You can carry personal liability insurance whether or not you have any other type of liability coverage, and some people choose to maintain this type of policy indefinitely.

Whenever you purchase a policy as a driver, you should consider adding first-party medical coverage such as personal injury protection insurance. This coverage will pay for your medical expenses any time you are involved in an auto accident, regardless of who owns the vehicle you are in. Personal injury protection coverage will also protect you as a pedestrian or bicyclist so it is very valuable for people who do not have cars.

If you do not already have some type of liability insurance, you will also want to add liability coverage to your driver-only policy. Property damage liability and bodily injury liability will pay for damage and injuries that you cause with a vehicle. It may even be able to cover damage to the vehicle you are driving, depending on the state insurance laws in your area.

You will probably not need to buy collision, comprehensive, roadside assistance or rental reimbursement coverage as a driver. These are all first-party insurance that pay for repairs or services to a specific automobile. If you don’t own a car to repair, there is no need to buy full coverage auto insurance. This will help keep your premium costs affordable. You can always add full coverage later on if you choose to purchase an auto.

Begin your search for driver-only auto insurance quotes online by obtaining free quotes from multiple providers. Once you have narrowed down the list of potential car insurance companies make sure to contact them direct for a more specific quote and discuss your individual needs.

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