Dr Joe Vitale : My son is going to college and needs to get temporary car insurance, can you explain if this is possible and what is the advantage?

Response : Temporary car insruance for college student of teens would not be the answer to your needs. Check out why?

</h1> Temporary car insurance  </h1>

Temporary car insurance is for very short period of time for 1- 28 days only. Temporary car insurance is also called short term car insurance. Basically, this is a car insurance policy you would need when you are travelling to another country or to a state, where you might need higher car insurance coverage than what is required in your state, if you want to be safe.

The other reason you might get temporary car insurance is when you do not noramlly  have car insurance and decide to go for a holiday and drive a car for a temporary time.

Short term or temporary auto insurance is easy to get since most of the car insurance companies would provide you with this coverage.

You need to remember that the short term charges or rates for car insruance are high for a month, when compared to 12 months, since you would be charged for the paper work and also the administration cost, even for a month, which is higher.

<h2> You need “Pay as you go”  car insurance</h2>

The best option avaliable now in 2013 and this started in 2012, is to get “Pay as you go” car insurance. This is car insurance which is rated on the basis of  how many miles you drive, your driving history and driving habits. Joe, this would be a blessing for you, where you can get car insurance at a cheaper rate and also at the same time be able to guide and monitor your son’s driving record.

“Pay as you go” is now offered by most car insurance companies like Progressive, State Farm Insurance and many other car insurance companies. You can get your car insurance quote also here. Check out this video for further information and insight on temporary car insurance.

It’s unbelievable, but true that  1.23 million deer-vehicle collisions happened within the U.S. between this summer from June 1, 2011 and June 30, 2012, costing greater than $4 billion in vehicle damage, based on State Farm, the nation’s leading car insurance provider.

Damage triggered by a major accident with deer or any other creatures is included beneath the optional comprehensive portion (not the collision portion) of the automobile insurance plan. Car insurance includes coverage for: fire, thievery, vandalism or malicious damage, riot, ton, earthquake or explosion, hail, windstorm, falling or flying objects, damage because of connection with a bird or animal and often, with regards to the policy, windows damage.
The normal claim for deer-vehicle collisions between This summer 1, 2011 and June 30, 2012 was $3,305, up 4.4 % from the year before with costs different with regards to the kind of vehicle and severity of the harm. During the last four years, the amount of deer-related claims compensated out by State Farm elevated 7.9 %, while other claims including moving automobiles (i.e. first-party, physical damage claims not triggered by weather, criminal activity or fire) rejected 8.6 %.

The Insurance Coverage Institute for Highway Safety (IIHS) noted that deer-vehicle collisions within the U.S. cause about 200 deaths yearly.

“Drivers should take notice and pay particular concentrate on the edges from the road, especially throughout the hrs right before dusk and merely before daylight,” stated Loretta Worters, v . p . from the I.I.I. “Fortunately, you’ll find steps you can take to lower the prospect of being associated with a deer-vehicle collision.”

Would a deer claim raise your car insurance premium?

If a deer would crash with your car and damage occurs to your car the car insurance company would pay your claim. However,  you need to be mindful that this is considered a claim on your car insurance record for which you are considered at fault. This would mean that your car insurance premium would rise for the next year.

It would depend on the insurance company as to how much the car insurance rating increases. Each insurance company has its own rating formula.

It is best to compare car insurance quotes.

Steps to prevent deer crashes with cars

Always you should get some car seatbelt. The IIHS reviews that in the study of fatal animal crashes, 60 % of individuals wiped out weren’t putting on a car seatbelt. 60-5 % of individuals wiped out in animal related crashes while riding motorcycles weren’t putting on head gear.

Be especially mindful from sunset to night time and throughout the hrs shortly before or after sunrise. Fundamental essentials greatest risk occasions for deer-vehicle collisions.

Brake firmly if you watch a deer in or near the journey, but remain in your lane. Many serious crashes occur when motorists swerve to prevent a deer striking another vehicle or come unglued from the cars.

Don’t rely on products for example deer whistles, deer fences and reflectors to discourage deer. These items haven’t successful.

In case your automobile strikes a deer, avoid going near or touching your pet. A frightened and wounded deer can hurt you and also further injure itself. Once the deer is obstructing the roadway and poses some risk with other drivers, you need to call law enforcement immediately.

Young drivers need to be extra careful when driving especially when they see a deer sign board. For young drivers, who are new drivers and inexperienced you need to be more careful about this, since deer accidents can be fatal or cause high damage.

Happy holidays and happy driving.

Kamlesh

Kate Bank : Would teenagers be paying low car insurance based on telematics in future

Teenagers paying low car insurance based on telematics now- Progressive and State farm the leaders followed by Aviva.

Response : The game of car insurance is changing fast and furiously. From the marketing stand point and rating of the car insurance, technology is proving to be the main driving force to bring about remarkable changes.  Personally, I do appreciate the changes in the car insurance market though I personal the traditional method paid me higher commissions as an agent. Glad that the focus has shifted and its now its all about the customer- the client and it is changing in your favor. Yes it does give me joy in claiming that the teens will get cheap teen car insurance.

Lets consider how and why:

The traditionally personal car insurance policy were priced on and are still priced on by most car insurance on age, gender, location your credit score and also the past claims experience.  Now, with the availability of more data which is targeted and can be generated through telemetics – you are paying based on your own usage and your own driving record. It’s a sweet deal for teens who are good drivers. For those who are not good drivers, do not worry- check out my post : “ Bad drivers – too change- getting cheap car insurance”.

How would the insurers get robust data for car insurance?

The next question in your mind- how would insures get this data for car insurance?

GPS, smartphones,  or the black box are easy ways how information can be obtained regarding – where you are driving, how long you are driving, how you are driving. GPS devices collect fewer low- value data options when compared to telematics devices.

What is a telematic device: This is an instrument which houses a car radio with RDS module, a wireless telephone and a positioning and navigation system. This is kept on your cars navigation bar and tracks information pertaining to your car. This information is passed on to the car insurance company.

How would the car insurance company arrive at a rate for car insurance?

The insurance company – Progressive is already doing this – would install the telematics and record information based on this it would get idea of your car usage, your driving habits and base the rate on these factors.

In reality the traditional model of rating has not been banished but has been modified  to include your own details and hence it works best for you since there is no overall loading for assumptions .

So you need to check out your driving habits now… a great tip do not follow your parents driving habits if they are bad driver. Check out my next post why this statement was made.

Watch a video on

Alex Sikkh: Would my mum’s auto insurance cover me if I am driving my mom’s car?

Response : If you are driving a car which does not belong to you are you covered under auto insurance even if I do not have my own teen auto insurance policy or an auto insurance policy?

This is a tricky question and has come up again and again. Obviously, teenagers do want to drive the car especially their parent’s car however, you  want to first find out whether they would be covered if they are driving a car. Now be careful and read this carefully so that you do get auto insurance coverage. There are two conditions which you and the owner of the vehicle must be careful and aware of to have car insurance coverage from the insurer:

1)    The owner must give you permission to drive.

2)    You must not be an excluded driver on the owners car insurance policy.

You need to make sure that you have the owner’s permission to let you drive his or her vehicle even if the owner are your own parents. If you are driving a vehicle with the owner’s permission, will the auto insurance policy respond to any liability or personal injury insurance coverage.

Secondly, your parents or the person’s whose vehicle you are borrowing should not have any exclusions of drivers on their auto insurance policy. Many times when one of the partner (spouse) is involved in a drunk driving conviction or has a bad driving record, they are excluded drivers on the auto insurance policy of the spouse who has a good record. This is mainly done to obtain better auto insurance rate for the one who is not at fault . At times, this might be a very conscious and deliberate decision. However, this would mean that the auto insurer would not be responsible for any liability when the car is driven by the excluded driver, irrespective of permission from the owner.

You also need to be aware of the recent Supreme court decision which overruled the decisions by the state appeal court and gave judgment in favor of the insurance company.

In this case, there are two cases which are exactly similar to what has been stated here. Please read about this at the link provided here : Teen auto insurance coverage. Both the drivers were rouge drivers and one of them was specifically excluded on the car insurance policy.

Summary

Remember never to be a rouge driver.  Drive a cr with premission of the owner, if you want the auto insurance coverage of the owners car insurance policy to respond and do not have your own teen auto insurance policy. You should not be an excluded driver on the auto insruance policy.

Shawn Johnson: I live with my grandparents in Indiana. and I was involved in a car accident. My own auto insurance limits were very low? Would my grandparents have to pay for me? I am not 18 yet. The other person hurt in the accident is not invalid. The accident was 100% my fault.

How responsible are parents or grandparents for accidents?
Response : A very good question Shawn, I am putting in my thoughts and opinion on this one. However, please understand that this matters are legal matters and hence I am not a lawyer. My answer to this question is only from the insurance perspective only. It would be worthwhile to get legal opinion for any case you have.
Coming to this question, there would be a couple of things that would be considered to affix the liability. One would be if your grandparents had signed a financial responsibility affidavit that enabled you to secure your license, depending upon the state you are living- for example In Indianan there is a requirement to do so. It this is the case, than basically your grandparents have agreed to be responsible for any injuries or damages caused by his operation of a motor vehicle.
However, for having your grandparents being included in the action, the third party should do this before the limitation period has expired, which is normally 2 years in most states.
Secondly, it would be important to note the coverage on your grandparents auto policy. Does their auto policy cover you as one of the “named driver”, if so you would be covered also on their policy. You also need to keep in mind that the insurance auto policies are very carefully worded. In order not to pick up a driver not intended to be covered but living with the insured, the policy wording are well written. For eg : some policies include the following definition and exclusion:
The usual definitions of “relative,” but also provided: “…It excludes any person who, or whose spouse, owns a motor vehicle other than an off-road motor vehicle.” In this case if you own a car – this would mean that you would not be covered under this policy by virtue of just staying with them.
The language is very clear here, and hence if these are the wordings of the auto insurance policy, the auto insurer is justified in denying the claim on these grounds.

Be careful in selecting auto insurance limits.
I do not know what auto insurance liability limits you had opted for, but the rule of the thumb is that the teen auto insurance liability limits should be much higher. Liability limit is usually considered under three heads as below:
• Bodily injury liability for one person in an accident
• Bodily injury liability for all people injured in an accident
• Property damage liability for one accident
Each state, except for New Hampshire, has minimum requirements for bodily injury liability, it is probably in your best interest to purchase higher limits. If someone else is injured and you’re at fault, the minimum liability coverage may not cover the other drivers or motorist medical expenses, in which case he or she will most likely come after your assets. Insurance experts generally recommended that you purchase 100/300 limits of bodily injury liability (meaning $100,000 for one person in an accident and $300,000 for all people injured in one accident). On the other hand, if your personal assets don’t amount to much, there’s little for another driver to get if he were to sue you. The minimum requirements might actually suit you and will save you some much-needed cash.

Please see the chart below:

It is best not to worry about the quantum of premium but ensure that you have adequate teen car insurance limits. You can get cheap teen car insurance quotes here.
Thanks.
Kamlesh