Q: I have just one question, if I have a automobile liability policy does it cover any car or truck that is registered or operated by me?

A: Yes, your car insurance would cover you in any non-owned vehicle. A non-owned vehicle is a vehicle that you are not the owner of at the time.

For example, when you rent a car your car insurance will cover any accident you are in with that vehicle. There are time limits though and most insurance companies will only provide coverage on a non-owned vehicle for up to 30 days. This is an unknown risk to them and they extend that coverage as a courtesy to you, it is not something they are required to do.

Now, there is a clause. It’s car insurance, of course there is a clause. If you are driving someone else’s vehicle (not a rental) and you get into an accident, their car insurance is the primary coverage and yours is the secondary coverage. So your friend is on the hook if you get into an accident with their car.

Car insurance policies are designed to cover the vehicle, not the driver. Insurance companies create most of their rates for physical damage coverage by using the claims and safety history of the vehicle that is on the car insurance policy. If you are driving a different vehicle than what is on the policy then the car insurance company is not charging the correct rate for the coverage.

If you need car insurance for any vehicle you drive contact your car insurance agent about purchasing a non-owners car insurance.

Q: I rent a car near the border and use it for two weeks in Canada. My Insurance company says they don’t insure that car but the credit card they issue does cover the car I am driving. My liability?

A: I am very surprised that your car insurance company doesn’t provide coverage for a rental car in Canada.  You may want to obtain the legal contract of your policy and take a look yourself. I think you may have been told the wrong information because most insurance companies in the United States do provide coverage in Canada and so many miles into Mexico.

But I do have to ask, are you renting on the Canadian side or the US side? Because that would make a difference. Rental cars from outside of the US are generally not covered by your US insurance policy. Some insurance companies offer higher levels of coverage that would include it, but that is rare.

In regards to your credit card covering it, that is something completely separate.  Credit cards have different rules and regulations. To protect yourself though, I would make sure that you have it in writing that your credit card company will cover the damage to your rental car and any damage you would do driving the rental car. I am not familiar with the terms of coverage with a rental car through a credit card though as I have never had to use it, research it, or work with it.

If nothing else, purchase insurance from the company that you are renting a car through.

Q: Do I have to get insurance through a car insurance agent?

A: No, you don’t.

Thanks to the internet there are now plenty of opportunities for you to be able to purchase your own car insurance directly from insurance companies and because you are cutting out the middleman you will most likely save money by doing this also. However, by cutting out the car insurance agent you can also be harming yourself.

Car insurance agents are your insurance advocates. They know the field, they know the companies to put you with, and they know the claims process. They know when something doesn’t sound or look right with the numbers a claims adjuster is giving you. They know when your premium looks higher than it should be.

In a lot of cases, by cutting out the car insurance agent you may actually end up paying out more in premium or lost claim money than you would have paying the small commission that agents make from your premium.

I personally don’t have a car insurance agent, but I have also been in insurance for 12 years and know what I am doing. I know what discounts I qualify for, what coverages I need in my life to protect my current finances and what my vehicle’s worth is. I have even represented myself in the settlement process of a claim after a serious car accident, where I had to go through 9 months of physical therapy for multiple back injuries, because I know what you can claim under pain and suffering.

If you don’t know what you are doing, I would suggest sticking with a car insurance agent.

When you purchase insurance, make sure you are asking your car insurance agent the right questions.

Car insurance is a more important purchase than most people treat it. Buy too much and you are wasting your money. Buy too little and you are putting yourself at serious financial risk. To make sure you are right where you need to be with your coverage, ask these 8 important questions.

1. What Car Insurance do I Need?

Before you even go to the car insurance agents office, know what your assets are. How much is your car worth? How much money do you have in the bank or invested that you can liquidate quickly if needed?

Knowing how much your vehicle is worth will help you determine whether it is worth putting coverage on it at all and what deductible makes the most sense. You don’t put physical damage coverage with a $500 deductible on a vehicle that is only worth $500.

Knowing your assets and how much cash you can have on hand will help you decide how much liability coverage to choose to protect those assets in the event you are sued after a car accident.

2. Does My Policy Pay Attorney Fees?

In most cases, yes, your car insurance policy will pay for you to be represented by an attorney if you do find yourself in court from a car accident. But, make sure how much your policy covers and what the fine print is in a policy before you purchase.

3. Do I need Coverages That Aren’t Required by the State?

The only car insurance coverage you are required to purchase is liability coverage. However, even though other coverages like loss of use, towing, collision and comprehensive are optional they are still important in providing financial protection.

For example, if you are in a car accident that disables your vehicle, you don’t have a second vehicle and didn’t purchase loss of use coverage you are left without transportation to get to work. Without being able to get to work you aren’t getting paid and could possibly lose your job. A whole scenario that could be avoided just by purchasing the optional loss of use coverage; which is guaranteed to be cheaper than the wages you would lose.

4. What Discounts Do I Qualify For?

When your agent puts together your quote have them provide a list of available discounts. Make sure you go through the list and that the ones you qualify for are added to your quote.

5. Will My Policy be Non-renewed if I get a Ticket or into an Accident?

This last question will get a variety of answers and it all depends on who your car insurance agent is trying to place you with.

Q: My son is getting his diving permit this summer, do I have to put him on my insurance policy?

A: In most cases you don’t. He isn’t a licensed driver yet and insurance companies usually only require that licensed drivers be put on insurance policies. If you are going to be staying with the same insurance company you won’t need to provide their information until either the insurance company asks for it while they still have their permit or when they get their license.

As tempting as it is, don’t skip on adding your new driver to the policy. If they get into an accident the insurance company will pay for the accident, but they may cancel your policy afterward. If they don’t cancel it, they will make you add them.

If you are switching insurance companies this summer you may have to provide all of the names and birthdates of those close to driving age in your home. Insurance companies do this to keep track of the drivers in the household so that a newly licensed driver is added when they should be. Teen drivers are a high risk to insurance companies and they have to be able to collect the appropriate amount of premium for the risk in order to remain solvent.