Best Car Insurance For Young Drivers

Questions and Answers

Your Questions About Cheap Student Car Insurance Companies

August 4, 2012

Lizzie asks…

“Own” a car that is in someone Else’s name…insurance lapses, you get in an accdt. will the owner be liable?

Question for people who really know. Prefferable a law student or lawyer…My sister gave me her car so that she could get one with cheaper payments and wouldent have to let it get repo’ed. I became unemployed and couldnt afford the insurance any longer. I had gotten into an accident. The accident was deemed my fault. There is a company that is now persuing medical and workers comp. from me. This company has already paid out to the other party but wants to get the money back from me. I have been told my only option is to either settle and pay or file bankruptcy. At this point in my life bankruptcy is my only option. Can this company legally then, after I file chapter 7, try to collect from my sister. Keep in mind that although she was the owner on paper I have been making car payments for several months. I was the one that was driving and got into the accident. My sister didnt know I was uninsured. Can they still take her to court and get a judgement or garnish her wages?
Thank you for your answers. I am not a terrible person, however, not responsible at that point in my life. Unfortunately even people who are down on their luck and cant afford insurance still have to drive. Other than that it is beyond excuses. The reason I asked if I could file bankruptcy without leaving my sister for the fall shows that I am not willing in any way to abandon my sister with a debt that is my responsibility. I would not even consider the Bankruptcy if I wasn’t sure she would be “immune” to collections. Thanks for all your know how.

Administrator answers:

Both the vehicle’s legal owner (name on title) and the operator are liable for any damages. You both can be sued.

You can be prosecuted for operating an uninsured vehicle and your sister can be prosecuted for allowing an uninsured vehicle to be operated on the public roads.

Your sister isn’t just the owner “on paper”. She IS the legal owner of the vehicle, not you. It doesn’t matter who was making the payments. She could have taken the vehicle back at any time, and obviously she should have since she’s about to be screwed due to your negligence.

The owner of the vehicle has a legal obligation to ensure that the vehicle is insured and the operator has a legal obligation to ensure that valid insurance is in force when operating a vehicle.

If your debt can be discharged through bankruptcy, then the other party’s insurance company will most certainly go after the legal owner of the vehicle; your sister.

David asks…

I sold a car, now buyer wants to return. no bill of sale! (private sale)?

First of all, I am a foreign student in US, so I don’t know motor vehicle regulations very well here. If my questions looks silly, accept my apologies in advance.

Recently a car hit my 2000 Ford Taurus from behind. The bumper is cracked and the trunk lid is bent which prevented the trunk from getting locked. Even though the accident didn’t cause any mechanical damage, I was suffering from lots of other mechanical problems even before the accident. (leaking coolant, constant engine light which occasionally flashes, gray smoke coming out of muffler)

Anyways, I received good money from the other party’s insurance company and bought a new car. Then, I decided to get rid of my Taurus for a cheap price on Craig’s List.
Someone came to see the car. I explained him all the problems. I told him that I was using the car by adding coolant in every two weeks even before the accident. I told him about the engine light and gray smoke. He said that the engine light was most probably because of blown headgasket and it would decrease the value of the car considerably. Since I didn’t know much about the cars, I didn’t even argue on anything. He test drove the car and finally he said that he could repair and sell the car, and make some money out of it if I would sell it for a reasonable price. Finally, we settled down for $720. I received the money in cash. I signed the title and NY State DMV DTF-802 Statement of Transaction form (i don’t have a copy of it unfortunately) , and gave them to him. We didn’t sign any “bill of sale” agreement. I returned my plates and removed the car from my insurance policy in the next morning.

Later afternoon, he called me and wanted to return the car because of the overheating problem. Since while selling the car I told him that coolant was leaking and he needed to fill it up every two weeks ( which i did in a whole year), I refused to take it back. Besides, i didn’t want to take back the car since i didn’t have plates and insurance on that car anymore.

He still claims I misled him while selling the car, which is not true at all! He said he would sue me if i didn’t accept the return. I’m super stressed after my conversation with him since this is the first time that I sold a car and i don’t have any proof of transaction or “bill of sale” that proves that I sell the car “as is”. I didn’t even know this guy’s last name! (He even refused to give me his full name on the phone.)

Do I have to worry since I don’t have a copy of Statement of Transaction form that I signed. As I said I already signed and gave the title, surrendered the plates and removed the car from my insurance policy. Do I still have any responsibility on that car? If he involves in some kind of illegal action with this car, can i be held responsible for it?

Thanks for all answers in advance…
I signed the title and filled all fields related with me, but I didn’t see him while signing the title. So, I don’t know whether he has his signature on it right now.
I surrounded the plates, so my plates are not on the car anymore.
I never gave him a warranty (written or verbal).

Administrator answers:

You did everything required for the proper and legal sale of the car. He can make all kind of threats but he doesn’t have a leg to stand on as far as forcing you to take it back. Tell him to back off or you will file suit for harassment.

Charles asks…

How much do you pay for your teenager’s(16) auto insurance?

I just got a learner’s permit, and GEICO says that they do not charge for learner’s permit.

However, when I get my driver’s license, it’ll cost an additional ~$500 per 6 months. I am a straight-A student, records are clean, and I’m NOT adding an another car–just me–into my parent’s coverage. Is this expensive? Normal? Cheap? What do you pay, and what company are you covered by?

Also, deductibles are $1000.

Administrator answers:

When my teen got his driver’s license, his rates were $67 a month through Farmer’s, once he hit 20, they dropped to about $37. I understand our rates are exceptionally low but I guess it’s because we’ve worked pretty hard at lowering our insurance rates!

–Maintaining a 3.0 GPA earns you the good student discount.
–Taking driver’s ed also lowers the rate. Most insurance companies offer inhouse defensive driving program via the web, which can also lower insurance rates. Ask about it.

What your parents may consider is buying you a clunker car–and making that YOUR car. Clunker cars are cheaper to insure (less risk of theft) plus you don’t need to have carry comprehensive. A clunker may run you $1500-2000, but the cheaper insurance will pay for itself in a couple of years.

Michael asks…

Why do liberals think government is the answer?

Last time I checked, governments historically have always failed and the people failed with them. Soviet Russia, Nazi Germany, Rome, etc…

If a business fails, the country doesn’t fail, no tax payer is effected, only the employees and the owners.

Not to mention everything even liberals purchase like cars, food, clothes, homes, etc… are all purchased on the freedom of which product in that category they like. The government never dictated which ones consumers should buy, everyone picks what they feel like is the best.

Think about it, health care was never a free market. Medicare and Medicaid ruined the chance of a free market to establish for insurance companies. If medicare and medicaid didn’t exist, health insurance would be like auto insurance, it’s cheap, affordable, and efficient. Medicare/Medicaid, limit insurance companies to give plans to people of low income, since medicaid gives it out, and the middle class doesn’t qualify for medicaid, and the insurance company can’t give out a reasonable quote since it has nothing of low value to compare too. Example: McDonalds dollar menu burger is the cheapest, but the better quality burger places will sell theirs at a higher value, but not extremely high because the dollar menu burger is so cheap, causing them to be regulated by competition. Plus consumers dictate on what they’re willing to purchase.

Not to mention auto insurance rewards good drivers, because it gives their customers the incentive to be less of a liability to them. Example: Good Drivers discount, good student discount. If health insurance companies can be in any state, with out medicare and medicaid existing, they probably would reflect the same results as auto insurance, they probably would give a good health discount, because healthy customers cost them less, it also encourages the user to be healthy. Everyone essentially wins.

There is a reason why Costco pushes so much for such low prices, health care can be the same if it was 100% private sector. Wal-Greens is the biggest franchised drug distributor in America, I’d love to see a giant franchised health care system doctors can manage.
Government keeps order, police, fire fighters, military, and so fourth can’t be a business, it can never generate income.
Deb M: You’re so ignorant it baffles my mind, THE CONSUMER decides which company survive, if a company has bad ethics and out put, it can’t survive because no one will purchase their product/service.

HEALTH CARE IS NOT A FREE MARKET, Medicare and Medicaid are acting as insurance company’s giving out the service for free. It kills the market of being free. A CEO DESERVES to be rich because they manage the company, their pay is determined on the company’s success, A CEO can’t make millions if the company doesn’t generate that value, So the CEO wants to be successful, he wants his staff to do well, he wants it all to do great because his pay is determined by their out put, if he abuses his employees their out put will be poor and his pay result will be poor. You’re ignorant to think CEOs care about money only, it takes success to be there.
Kaitoboado [blocked by many]: ALL those countrys you list, tell me who has a better GNP, then tell me why those people of those shitty poverished nations stride to risk coming over the border to come here. Yeah that’s great Cuba has free health care, that’s so awesome, they make little rafts, and risk dying, leaving their socialistic society because AMERICA gives them the freedom to be anyone they want to be. That socialistic society never let them be anyone they wanted to be. They get taxed so hard their incentive to independently be some one is killed.

THE PUBLIC OPTION EXISTS, it’s called MEDICARE and MEDICAID, just only people of low income or elderly can qualify for it. Those two sections hurt Insurance Companies on giving them options, insurance companies have no value and have to make theirs up from people who aren’t poor, that’s why it is expensive.
Deb M: You’re also an idiot since stock holders are paying money to be part owner (Depending on how many stocks exist) and that money is put into the company to invest on the company’s out put. That money doesn’t go to the CEO, it goes to the company to help it expand or what ever is needed for grow.

You assume and assume. The Public Option will kill insurance companies to extinction, If you had a public option for every product sold, everything would become government owned and we would become communists. You’re so selfish to be greedy and demand tax payers pay for everyone. If we kill Medicare and Medicaid, the insurance companies will want to sell health care to those people. Why would they want to kill their market and not? I mean come on this is the stupidest conversation I’ve ever endured.

Administrator answers:

It is what one should expect from a collection of societal parasites.

The answer from Deb M below makes no sense. If she doesn’t want to support the CEO’s of a particular company, then she has the option of not buying from that company or using their services. The public option forces me, via confiscatory taxes, to support her health care. Personally, I don’t care if she lives or dies, her health care is not my responsibility. Relying on others to take care of ones existence is nothing more than parasitism, just like leeches and ticks.

Nancy asks…

Company doesn’t want to fix my car! Help please.?

About a month ago on a Sat, a company car hit my car, leaving a damaged hood, broken headlight, and damaged bumper….I spoke with a representative from the corporate office on the following Monday, and we talked about what had happened and how my car was going to get fixed. He was telling me that the company did not want to file a claim, that doing so would cause them to pay their insurance company a $5,000 deductible, and the damages to the car probably was not going to cost that much. So the company had asked me to get 3 estimates to get an idea how much to give me for repairs…..The average cost for the repairs was going to be about $1,250, the cheapest being $1,160. I have a 1997 Pontiac Sunfire, which apparently is worth about $1,400 with the miles on my car. That’s what the representative told me. Well even with an estimate, whoever was handling the situation for the company decided that my car was not worth the amount of money the shops were charging to fix it. So what they did was offer me $500 for the damages! I was so angry. I didn’t do anything but park my car and they expect me to pay out of pocket for something I didn’t do. Yeah I have insurance, but I’m a little hesitant to report it because my rates will increase dramatically, considering I’m still very young. I understand that my car isn’t worth much to them, and they use a book to determine how much is costs, but to me, my car is my only way to work, and means a lot to me. I’m a college student to I can’t afford to pay the additional $760 that it costs to fix. I’ve been lucky that I get out of work early enough that a cop doesn’t notice I have a busted headlight, but with the holidays coming, it gets really busy in October so I’m not sure how long that’s going to last. If anyone can help me with any advice, please do so. Is there a way I can get this company to stop low-balling me or is my only hope reporting it to my insurance company?

Administrator answers:

If you have collision coverage use your own insurance. You will have to pay a deductible but then your company will go after the other guy to get it back for you. Since your company will get money back this won’t be an at-fault accident and your rates won’t go up. Ask them. You pay for the coverage so use it.

If you don’t have collision or don’t want to use it. Keep reading.

You don’t say what state you are in so the info I’m going to provide will be general but will apply in most states.

First off if the damages to the car are in excess of 75% of the value then the company that hit your car legally does not owe you to repair the car. In most states if the damages exceed 75% (sometimes 80%) state law requires that the vehicle be totaled out. When that happens the repair figures mean nothing. The only thing that would matter is the Actual Cash Value (ACV) of the vehicle. Once a car is totaled the at-fault party or their insurance owe you the ACV which from what you wrote is approximately $1400. ( I did not research the value so it might be different) That is what they would owe you. However, be advised that they then own the car.

Here is what I would suggest you present to the company that hit your car. Tell them the car is a total loss and legally they owe you the ACV. Tell them that you will accept the value they mentioned $1400.00 and that then you will buy the car back from them for $150.00. That way they can deduct $150 from the $1400 and give you $1250.00. Then you have money to fix the car if you really want to do that.

Good Luck

Thomas asks…

No license/expired registration/insurance in full effect and new title…? In NY.?

License expired 6 months ago and I have kept up with insurance even though my vehicle just sits in a garage. I’m in NYC and in college so there is no reason for me to drive for the past 2 years. My insurance company renews the policy every 6 months and my insurance rate is still that of Upstate NY where it is at least $1,600 cheaper. NYC is $600 more and I was told that I would have to cover my brother who is under 25 (not allowed to drive my car nor want to) just because we share the same address. My insurance company seems to be using my last registered address so I have been too afraid to renew registration and notify my insurance company of updated address. Recently I got around to changing the title to make it legit; the vehicle was what I won in my divorce settlement. Vehicle is also completely paid for and completely mine. Question is, with the title now under my name, do I need to register it right away? Would my rates automatically go up (they will use new NYC address on title)? Do I need to notify my insurance company of the changes if I am not driving the vehicle for the next 5 months? Will they even know?? I ask these questions because I am a full-time student who do not work so I can’t really afford the extra costs in insurance. I hope to get a job in May ’10 right after I graduate with my Bachelors and move to NJ where I hope to live and work. At that point, I would care less about how much they want to charge me. I am just concerned about the ramifications of not updating address or registering the vehicle for another 5-6 months. Thank you!!
I hope to work at the airport and will be joining the Air National Guard after I graduate. I will need my vehicle for that purpose so it’s prob. better that I do not sell. Vehicle is still in great condition.

Administrator answers:

As long as you have the vehicle insured, you MUST notify the insurance company of your new address. They may honor your old address anyway because there are special rules for full time college students attending school away from home. You must also notify them of anyone who lives in your household who holds a valid drivers license. BY not notifying them of your present address, you could be cited for insurance fraud. It makes no difference if your brother ever drives the car or not. You still MUST notify the insurance company that he lives with you.

You do not have to license the car just because you have a title in your name.
Read below for the rules on “households” and auto insurance

Insurance companies want to know about all licensed household members (it does not matter if they are young or old) so they can calculate their potential risks for having you and these drivers covered by your insurance policy. When you purchase liability insurance (which every auto insurance policy has), there is a law that insurance companies to cover all household members who have a drivers license. Most all insurance companies will require that you either add licensed household members to the policy or exclude them. This is because as household members it is assumed they have access to your vehicles and may drive them at any time. These drivers are thus a risk/rating factor to be taken into consideration.
Many state laws require it, and your policy contract has in it terms that say you must inform them of licensed drivers dwelling in your household, so that they can add him as a driver to your policy and rate accordingly or exclude him. Excluding anyone from your car insurance would mean that you are not paying extra on your policy to have him/her as a driver and thus they are not extended any coverage by your insurance policy if they were to drive your car and be in an accident, even if it were an emergency situation.
So most insurance companies will require you to place the non-relative household member on your insurance policy as a driver if he is licensed. All licensed household members are normally required to be listed as a driver or excluded on an auto insurance policy by the insurance provider.
If you have a licensed household member, whether a relative, roommate, etc, the insurer believes that the person will have access to your vehicle and thus is a rating factor that should be on your insurance policy. If the person really is not going to drive the insured vehicle then there should not be an issue with excluding them. Without you signing off on the exclusion the insurance company cannot really believe that a licensed household member may not drive your car.
State laws differ however. Typically, insurance companies are allowed to use classifications that reflect a possible exposure for liability on the part of the insurer, in the event that bodily injury or property damage occurs due to the operation of the vehicle by anyone in your household.
The perceived risk for non-household members by an insurance company is different and that is why you can normally let a friend that does not live with you borrow your vehicle without adding him or her to your policy.
A friend may occasionally borrow your car and be covered by your insurance because they do not have regular access to your car and thus are not rated as a risk factor on your policy. If you do have someone outside of the household that regularly drives your car then normally an insurance carrier usually would also want this person listed an occasional driver so they would be properly covered in an accident.

Betty asks…

what can i do about this !! Auto loan?

I was approved for an auto loan from a credit union i recently joined. the conditions were that i get a co-signer, my aunt agreed to co-sign. the car that i originally had in mind was just at the max. price i would pay, then when i realized my car insurance rates i needed to find something cheaper. i found something, which i believe to be a great deal and went to my credit union to sign the papers. when i got there i was told that the person who originally approved my loan was “no longer with us” and they’re not sure if they want to give me the loan because i am a student although i have a full time job, and i will only be working about 5 hours less than i would in the summer time. I was told they would give me a call in the morning so i’m anxious to what i can say or do because i already payed $1,300.00 in full for car insurance.
High School Student
Mitsubishi Endeavor.
no other insurance company came close to being that cheap.

What can i do?

Administrator answers:

What you need to be aware of, is not only do you need to qualify but the car you are buying has to also. If you changed the car that you are purchasing, the bank is going to need to make sure the new car’s value is worth what you are asking to borrow.
Also, you will get your money back on the insurance if the car sale falls through.

Joseph asks…

Anyone with auto loan experience?

I was approved for an auto loan from a credit union i recently joined. the conditions were that i get a co-signer, my aunt agreed to co-sign. the car that i originally had in mind was just at the max. price i would pay, then when i realized my car insurance rates i needed to find something cheaper. i found something, which i believe to be a great deal and went to my credit union to sign the papers. when i got there i was told that the person who originally approved my loan was “no longer with us” and they’re not sure if they want to give me the loan because i am a student although i have a full time job, and i will only be working about 5 hours less than i would in the summer time. I was told they would give me a call in the morning so i’m anxious to what i can say or do because i already payed $1,300.00 in full for car insurance.
High School Student
Mitsubishi Endeavor.
no other insurance company came close to being that cheap.

What can i do?

Administrator answers:

What you need to be aware of, is not only do you need to qualify but the car you are buying has to also. If you changed the car that you are purchasing, the bank is going to need to make sure the new car’s value is worth what you are asking to borrow.
Also, you will get your money back for the insurance if the car deal doesnt happen.

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