Accident Without Car Insurance
Reader’s Question:
For instances when I meet an accident but it is the other party’s fault, I do not know what to expect because I do not have car insurance?
Gene
Detroit MI
You might be given a ticket from the responding law enforcement officer. This may comprise of a monetary fine and you may need to provide proof that you have obtained an insurance policy. Needless to say, this policy will not cover you for the loss that already transpired.
More so, your license may be suspended and you may need to comply with the financial responsibility laws. This will entail you purchasing an ‘SR22′ insurance policy. The SR22 filing is proof of insurance that is filed with the Department of Motor Vehicles in your state to restore a driver’s license that has been deferred.
Do I Need Car Insurance For A Cheap Car
Reader’s Question:
I have a vehicle that is only worth a few hundred bucks, do I still need to get car insurance for it?
Michael
Orlando FL
Each state has financial responsibility laws entailing either insurance or the ability to pay for any damage caused while driving. This page summarizes the insurance requirements in your state.
In all except 2 states, you will have to insure your car. It is only in New Hampshire and Wisconsin which do not have compulsory insurance laws. Most of the states really require that you show proof of insurance before you register a car.
An older car that does not have much value is usually not insured for physical damage, that is comprehensive and collision coverage. However, you still must have liability coverage on your car.
Despite the insurance you hold, you must be financially responsible for any damage your car may cause.
Increased On Automotive Insurance Quotes
Reader’s Question:
Is it just me or has anyone noticed that automotive insurance quotes have suddenly become higher?
Ben John
Memphis TN
You are very right in your observation that automotive insurance 
quotes have increased. According to news reports, it seems that for the year 2009 so far, auto insurance rates are about 12.25 percent higher that it was in 2008. Reports have also said that there are now states that experienced moderate pricing changes.
In June of this year, the average auto insurance on a yearly basis was about $1,804. By July, it went up by $8 to $1,812. Minor increase right? How about this then. Currently, the national average premium for car insurance stands at $1,796. During the same period last year, the national average was around $1,600. Guess what? That’s an increase of around 12%. High isn’t it?
There is however a silver lining to this cloud. In all likelihood, the insurance rate on a national level will stabilize. For you this means two things. First, that the increase of automotive insurance quotes will now start to slow down. Second, it is time for you buy yourself an auto insurance or possibly renew it.
If you already have insurance, then go back and study your policy. Do you find the rates high or do they seem okay? Compare this with similar policies being offered by different insurance companies. Don’t just look at the amount of the premiums needed to be paid. Also compare coverages. You may be getting cheaper insurance but the coverage may not be that good. Always remember to balance things out.
If you don’t have insurance, then start looking for one now. Most states require drivers to carry insurance and there is even a federal programs that will require you to prove that you have continuous insurance for the past year.
It is not likely that automotive insurance quotes will go down to what they were before. What you need to do is buy insurance now before the prices go through the roof.