Learner driver permit holders need car insurance.

Congratulations on getting your learner driver permit! The question to ask now is: do you need insurance to drive now?

Even at this stage in your driving career, the answer is an absolute “yes” in all 50 states. All drivers and all vehicles must be insured — no exceptions.

But how exactly is this done? How do you get learner driver car insurance?

Sometimes it’s as simple as understanding car insurance for teens. But often the specific answer varies greatly depending on situation, company, and state.

Learner Driver Car Insurance for Teenagers

If the driver is a teenager, learner driver auto insurance is best acquired by placing the new driver on a parent’s policy. The insurance company will need the learner driver’s state-issued license number and a vehicle to place the driver on.

This can be a tricky proposition. Some companies insist on placing the highest-risk driver on a policy on the most expensive car – you’ll have to check with your agent or broker.

The ideal situation would be to place the teenager on an older, paid-for vehicle with liability-only coverage. Make no mistake – this is going to be expensive no matter how it’s done.

Even so, given the big expense of insuring a teenager on a full-coverage policy on a newer vehicle, it might make financial sense for the family to buy an older car to insure their teenager. Naturally, check with an agent to make sure this is feasible for your particular situation.

Learner Driver Car Insurance for Adults

The situation is a bit different for adults who are driving for the first time. Many companies will take an adult driver on a learner permit in their high-risk company. Being placed in high-risk is due both to their lack of driving history as well as their lack of insurance history. While this can be expensive, many adults can move to a less expensive standard company after six months if all goes well.

An option an adult may consider for learner driver car insurance is a “non-owned” policy. This is a liability-only policy that covers only a particular driver and not any particular vehicle. A non-owned policy satisfies state liability insurance requirements and at the same time starts the clock on the driver’s insurance history sooner than later.

To qualify for a non-owned policy a driver must not have a car registered in his or her name. Otherwise the company will require the policy to be written on that car, even if it’s not the car being driven.

When You Get Your Full License

It stands to reason that an insurance company will not continue to insure a driver on a learner’s permit indefinitely. The driver will need to show proof of obtaining a full license in a timely manner to avoid cancellation. Most companies will allow a few months for this.

No company will wait around forever. You should provide the insurance company your full driver’s license information as soon as possible to avoid any problems.

Don't forget to insure your kit car before you start building!

A kit car may be the ultimate do-it-yourself project. It allows the hard core car enthusiast to build their own car from the ground up. But as with any car, kit cars need to be insured.

Given the unique nature of the kit car process, it’s insured differently as well. There are several kit car insurance considerations you wouldn’t even consider with standard factory-built cars.

How Kit Cars Are Different

Perhaps the important difference between kit car insurance and other types of auto insurance is the “builder’s risk” aspect of it. Whereas a standard automobile is built in a factory somewhere, and a classic car is built in a factory a long time ago, kit cars are by definition built by private individuals.

Auto factories carry a form of commercial insurance to cover their building process to protect against theft, damage and other perils that may hinder getting the finished product. In the same way, individuals constructing kit cars should insure during the building process as well.

Insuring the Kit Car Build

You should consider insuring a kit car before the first part is ordered. This provides coverage for such things as missing or damaged or parts during the building process. Without this coverage, a mishap involving parts could completely stop the build. After all, how much more useful is an unfinished kit car versus a totaled car?

Both cars just take up space.

Many traditional property and casualty insurers won’t insure kit cars (although some do). Even if your normal company doesn’t insure kit cars, they may have access to a kit car insurance market through a broker.

As with classic car insurance, there are several companies that specialize in the kit car insurance. Alternatively, you can shop for kit car insurance online. Check with your agent or broker for more details.

After Building Your Kit Car

Once the kit car is built, it’s insured in much the same way as a classic car. Material damage is covered at a stated value (generally the total amount spent to build the car) while liability is a secondary concern at best. State minimum liability limits must be satisfied to legally drive a kit car on the road.

If the car is meant to be primarily a display piece it’s not absolutely necessary. As with classic car insurers, most kit car companies won’t insure the finished product unless it’s used for primary transportation.

What you need to know to insure this beauty!

High performance car insurance operates much the same way as car insurance for any other car. But it’s not cheap.

That’s why shopping around is even more important. It may even land you a good deal.

How High Performance Car Insurance Works

You need to understand the basics of insurance underwriting before seeing how high performance car insurance works. Basically, insurance underwriters rate risks based on cars, drivers, and hundreds of other factors. If the company decides to take on your risk, they assign a premium to the new customer – and you get a policy.

Since the type of car is a factor for underwriting, some automobiles cost more to insure than others. Rates differ from company to company, but high-performance sports cars like Vipers, Camaros, and Mustangs rank among the most expensive to insure. From an underwriter’s perspective, there’s more risk involved.

But it’s not just about the car you drive.

Other factors, such as safety record, play a large role as well. If you haven’t already purchased your high performance car, it may be a good idea to research insurance rates before buying. The differences can be quite significant between models and companies for reasons that may not be readily obvious.

Coverage for Your High Performance Car

Theoretically high performance car insurance can be purchased legally at state minimum liability limits. However for a variety of reasons that’s probably not a good idea.

For one, minimum liability limits are often insufficient for even lower-cost models. Repairs and other associated costs for larger-than-fender-bender accidents can easily exceed minimum limits if you’re at fault. When dealing with high performance vehicles, the problem will probably be larger because it’s a more conspicuous car.

In addition, high performance cars represent an investment. As such, good material coverage is often recommended even after the bank is paid off. You wouldn’t want to treat your sports car in the same way as you would an old beater. After all, it may become a bona fide classic in a few years.

Exotic Coverage for Your High Performance Car

A standard full coverage policy may be sufficient for a domestic high performance vehicle. But it doesn’t work that way for all sports cars.

If you own a six-figure vehicle like a Ferrari, Lamborghini, or Masarati, you should consider exotic car insurance. Standard companies that would insure other high performance models may need to refer you to a special insurance broker.

As a general rule, when the car becomes more like an investment than a means of transportation, special insurance considerations should be addressed.

Why you need fleet insurance for company vehicles.

Fleet car insurance is different from a typical auto insurance policy. For one, it’s handled by a commercial insurance company.

As such the considerations for writing a fleet policy are different from personal auto insurance.

What’s Different about a Fleet Policy?

A fleet car insurance policy usually requires two or more vehicles owned by a company – not an individual. The company can be a sole proprietorship, but there must be a certain commercial element to the ownership.

If you have a company trying to get a fleet policy, be sure to include all vehicles when writing the policy. This includes trailers and other secondary vehicles, as they all need to be listed separately.

Another factor is that material damage options and deductibles. These can be different for each vehicle, but the liability limits are usually the same for all vehicles. In other words, changing liability limits on one vehicle means changing them on all of them. One should keep this in mind when getting a new policy.

Equipment that is commonly used with the vehicle but not intrinsically part of the vehicle itself may need to be insured separately. This policy is called an “inland marine” policy. This can include things like generators and mobile construction equipment. These items are typically insured at a stated value and depreciated based on age. Talk to your commercial agent or broker when getting this policy – they’re not covered under the fleet car insurance policy alone.

List Each Driver on the Fleet Policy

In addition, all drivers should be listed separately on fleet auto insurance. This is interpreted much more strictly than with a personal auto policy. There can be more than one driver per vehicle on the policy, but all drivers should still be listed along with the amount of driving they are expected to do.

If a claim occurs in an insured vehicle, but the driver is not listed, the claim could be denied. While drivers don’t need to have perfect driving records, they should also not have any serious problems. Drivers with poor driving records can also be declined. Many insurance companies will not accept drivers younger than 25 on commercial policies regardless of driving record.

Also keep in mind that drivers need to show they’re properly licensed to drive your vehicles. If you have a truck larger than 26,000 GVW, for example, your driver needs to document proof of having a CDL license.

Changes to Fleet Car Insurance

Fleet car insurance is always subject to change. Vehicles are bought and sold. Employees come and go. As a result it’s normal to change policy items on a fleet insurance policy regularly. Commercial insurance agents and brokers are used to this, so don’t be afraid to call them.

Bottom line: make sure you keep your policy as up to date – or there could be a problem when there’s a claim.

Longevity and continuous coverage count with car insurance.

Having continuous coverage on your car insurance is very important. A 35-year-old driver could have a problem when getting insurance again if he lets his policy lapse.

He may have a spotless driving record, but if he hasn’t driven for a couple years the insurance company will view him with suspicion when he gets a new policy – almost like a first-time driver.

So what’s the problem?

The Importance of Continuous Coverage

Continuous coverage is one of the most important things insurance companies look at when considering a new policyholder. Regardless of past history, if you’re unable to document at least six months of past insurance coverage it’s enough to disqualify you from a standard auto insurance company. In such cases a high-risk company is often the only alternative.

(Exceptions can be made for spouses and children of existing policyholders.)

That’s why keeping continuous coverage makes sense so that you avoid the ‘first-time car insurance pitfall’. This can be accomplished even when one doesn’t own a car through a non-owned auto insurance policy. This type of auto insurance policy insures the driver rather than a vehicle. Since there’s no car involved, non-owned policies are liability-only.

Continuous Coverage or High-Risk Insurance

But what if you don’t keep continuous coverage and you can’t get standard auto insurance. A high-risk company is probably your next step. A high-risk insurance company specializes in drivers who have a spotty driving history or who can’t document previous coverage. As a result premiums with these companies are higher than comparable policies with standard companies.

The good news is first-time car insurance policyholders with good driving records only stay with the high-risk company for a short time. Most standard companies will take new drivers after they spend six months in a high-risk company without incident. Unless there’s a ticket, accident or claim during that period, it’s rarely necessary for a new driver to stay in a high-risk company longer than that.

Non-owned policies are often available in high-risk companies. If you don’t have a car, but plan to get one soon, getting a non-owned policy can be a cost-effective way to establish that all-important insurance history sooner rather than later.

Moving from High-Risk to Standard Coverage

Most property and casualty insurance carriers have a high-risk subsidiary. When a driver becomes eligible to move over to the standard company it’s usually a seamless process.  The company simply transfers the driver’s information. Proof of prior insurance is already there.

If a driver wants to change companies, they must provide proof of coverage to the new company. An insurance liability card or policy declaration page documenting six months of continuous coverage will do the trick.

Even so, it’s the driver’s responsibility to initiate the process. Otherwise he or she may simply be renewed in the high-risk company, paying more than necessary.

Bottom line, keep continuous coverage on your car insurance whenever possible. If you’re not going to be driving for awhile, get a non-owned policy to maintain coverage and avoid high-risk insurance.

Why you may need to get a special policy for your classic car.

Classic car insurance is not the same as run-of-the-mill insurance for older cars. Just like a 1966 Ford Mustang isn’t the same as a 1995 Ford Festiva, classic auto insurance is different.

With older cars auto insurance is usually liability-only. The car is often paid for and there’s no need to satisfy a bank or lien holder with full coverage. Repairing an old beater is usually more trouble than it’s worth.

But classic car insurance is quite the opposite. A classic car is generally not a means of day-to-day transportation. Like temporary car insurance, classic car insurance is unique. For instance, it’s a collectable item with significant intrinsic value. In other words, when insuring a classic car you’re more interested in protecting against material damage than against a liability claim.

When was the last time you saw a Model T in a fender bender, anyway?

Why Classic Car Insurance is Different

Classic car insurance is more interested in material damage than liability. It’s possible to get classic car insurance with no liability coverage at all. Of course, no liability coverage usually means it’s not street legal. But if all you’re going to do is store a collectable car in a garage and unveil it at car shows, it’s not a bad option.

Also unlike most standard auto insurance policies, classic cars are routinely insured for a stated value. That means you’re not referencing blue book values. Owner and insurance company simply agree to an amount to insure the vehicle when the policy is written. As with any valuable item remember: if it’s worth insuring, it’s worth appraising first.

Because of these differences, it’s often not sufficient to insure a classic car with standard auto insurance, even with a generous full coverage policy. Liability is rarely a concern here. Material damage claims on a standard auto insurance policy would be based on blue book or similar values. In the case of a classic car this may be significantly different from the vehicle’s stated or appraised value, and never a difference to the owner’s advantage.

Getting Classic Car Insurance

To qualify for classic car insurance, in most cases the vehicle must be at least 20 to 25 years old and be considered collectable. Some classic car insurers won’t consider certain makes and models even if they meet age criteria. That’s because many vehicles built in the 1970s and 1980s weren’t as well-built as models that preceded them.

Other factors to consider include condition, rarity, historical significance, body style (two-door sports cars are usually considered more collectable than four-door sedans from the same era), and country of origin. One shouldn’t have any problem getting a classic car insurance policy for a 1981 DeLorean, but a 1974 Mercury Comet – even in good condition – may prove to be a challenge.

Classic car insurance can be obtained in one of two ways. First off, you can get it through an endorsement on your existing automobile policy through a standard property and casualty company.

Secondly, you could get it separately through a company that specializes in classic car insurance. Many agents will recommend the latter since classic car endorsements on standard policies tends to be expensive and may leave gaps in coverage. Several companies specialize in classic car insurance. Hagerty is the dominant player in the field.

Saving a couple hundred bucks is entirely possible with multi car insurance.

Most consumers know insurance companies offer car insurance discounts. However, not everybody knows what companies offer discounts for.

There are safe driver discounts, car alarm discounts, even good student discounts. One of the larger discounts insurers offer is the multi car discount.

Multi Car Insurance Discounts

Getting multi car insurance, also known as the ‘multi-car discount’ can turn into big savings on your auto insurance premiums. To get the discount, companies either add cars to the original policy or combine single-car policies. By insuring multiple vehicles, insurers can charge less premium to a family. Either way, that translates to savings for you.

As for the discount, you can save 10% or more on your monthly, semi-annual, or annual premiums depending on the company – not a small amount when you’re insuring more than one vehicle. Discounts vary between insurers and will sometimes change, so it’s important to check with the company to find out what the current multi-car discount is.

How to Get Multi Car Discounts

The easiest way to get the multi car discount is to ask. Most of the time, insurance companies will give the multi-car discount on a new quote. However, you should still ask to include the multi-car discount in each quote. Here are some times to ask about the discount.

Whenever you…

• Buy a new car.
• Buy a used car.
• Inherit a car.
• Win a car.
• Combine two households with more than one car.

Whatever the case, if you have more than one car in your household, you’re probably eligible for multi car insurance. Make sure your insurance company is giving you credit for each car to maximize your savings.

One final consideration about multi car insurance is the different discounts each company offers. Your current insurer could be a great price for one vehicle, but their multi-car discount may be paltry. Whenever you add another vehicle to your insurance, get a price from your current company, then get some more quotes. A new policy with another company could mean significant savings on your auto premiums so it’s always good to shop around.

You may need temporary car insurance if you're renting a car.

Drivers need auto insurance in most US states. If you’re behind the wheel and not carrying an insurance policy, things could go bad quickly.

If you cause an accident, you will still be responsible for damages caused. You may even be responsible for actions you don’t cause, like in a no-fault state. That’s why it’s important to get liability coverage whenever you drive.

However, if you’re only driving every once in awhile, temporary car insurance may be sufficient. “Temporary insurance” is a term used for short-term policies. Technically, every insurance policy is temporary because it only lasts until your next renewal – 6 months or a year down the road. However, short-term policies are used to cover drivers in situations not-deemed permanent by insurance carriers.

When You Might Need Temporary Car Insurance

There are several situations where you might need short-term auto insurance. This list is not comprehensive but shows typical situations where temporary coverage would be appropriate.

• Road-trip coverage for a rental car.
• Renting a vehicle for other-than vacation purposes.
• Covering a child who’s learning to drive
• Comprehensive protection for a stored car.
• Classic car insurance while driving, if it’s not normally covered.
• Test driving a vehicle.
• Borrowing a friend’s vehicle.
• Temporary ownership of a vehicle.
• Foreigner visiting the US and driving a vehicle.
• And more…

Contact Your Current Insurance Company First

If you think you need temporary coverage, check with your current insurance company first. If you have an auto policy in place, your current policy should extend coverage to any other vehicle you drive. No need in buying something you don’t need.

If you don’t have a policy, but you’re driving other people’s vehicles on a regular basis, many companies offer non-owners policies. This provides you, the driver, coverage usually in addition to the primary policy. Whatever the situation, your insurer should be able offer the appropriate coverage.

A Temporary Policy

Another option is getting temporary car insurance coverage. When renting a car, you can pick up a short-term policy from the rental car company. These policies can be expensive on an annualized basis. But prices are reasonable on a short-term rental – $6-12/day.

Check with your regular insurance carrier as well. A traditional insurance company typically offers better rates than rental car companies. These policies can last 1-30 days. However, not every company offers them. For convenience sake, it may be best to just go with the rental car option.

Another Option: Take out a Regular Policy

If you plan to need temporary car insurance for one month or longer, you might also consider getting a traditional policy. You are only responsible for premium while you need auto insurance. If you cancel the policy – say after 6 weeks – the insurance company is responsible for returning any premium that is due. It’s called the return of unearned premium and the state insurance boards regulates it. If you go that route, make sure you only pay for monthly car insurance.

If you need a quote for temporary auto insurance, apply here:

Temporary Car Insurance Quote

How to pay for auto insurance every month - not once or twice a year.

Auto insurance policies are contracts that usually last for 6 months or a year. If something happens to your vehicle that is covered in the policy (aka covered peril) during that time – and you’re current with your premium – the insurance company should cover the loss.

However, just because the policy is a 6-month contract doesn’t mean you have to lay down all that cash when you sign up. Most insurers allow policyholders to pay their premiums on a monthly basis. So instead of writing a $500 check every six months, you can pay $83.33 a month, plus applicable fees. This allows you to budget your car insurance like you would your rent, electric bill, etc.

Fees Apply for Monthly Billing

There is usually a fee involved with paying premiums once a month. It can be as low as $1/month – as was the case when I worked with State Farm. Sometimes it’s higher. When Progressive quoted my policy awhile back, I mentioned in my Progressive Review they wanted an extra $70/6-months. I guess $11.67/month isn’t too bad. I just didn’t want them to take $140 out of my pocket every year just because I didn’t have the cash on hand.

You can pay monthly a few different ways – depending on your insurance company. For one, the insurer can pull out the premium from your bank account. It’s convenient since you don’t have to remember to write a check or initiate bill pay. Just remember when the draft happens so you don’t get overdrawn. You can sometimes provide a credit card for the monthly transaction as well. In addition, you can send a check every month. Finally, if you have a local agent, you can pay cash, check, or credit card– depending on their payment capabilities. Once again, the method of payment depends on the company and sometimes your local agent.

Check the Fine Print for Monthly Billing

Bottom line, most insurers allow you to pay your insurance premium every month. They also allow several methods of payment. However, make sure you read the details when you sign up. There’s usually a fee and your overall insurance cost will be higher when you’re paying for car insurance monthly. Check with your insurance company for the details. Read the fine print if there are any questions.

Will you have to fork over more of these if you file a claim?

So you’ve had an accident and you may need to file a claim? But you’re worried about the effects on your next renewal. Will your insurance go up or will it stay the same?

It’s a no-brainer if your premium stays the same – file the claim. But if your rates go up, isn’t that where the insurance company gets their money back? I know what you’re thinking because I ask myself the same questions.

Here are some things to think about before you make that fateful call.

Your Insurance May Go Up

As usual, each claim situation is different. The first question to ask is ‘who’s at fault?’ If you’re not at-fault, you should not be surcharged for the incident. However, companies often use claims history in their renewal calculation. Even though there’s no surcharge, there could be a hidden increase. Rating is a complicated matter and many factors play a part.

However, if you are at-fault in the accident, there’s a good chance there will be a surcharge on your next renewal – probably extending for several renewals thereafter. It’s not so much a case of the insurance company getting their money back, but more of a “friendly” reminder from your insurer that you should drive safer.

Severity Determines The Consequences

The severity of the at-fault incident determines the severity of the consequences. If you are partially at-fault for an incident, there may not be a surcharge for the event. Each insurance company is different, so that’s not a guarantee. However, if the incident is serious enough (Example: Driving drunk, causing an accident, and inflicting injuries on another person) it’s possible your policy will be non-renewed. That translates to exorbitant rates when you get a new policy.

Another thing to consider is losing accident-free discounts. If you’re currently enjoying a discount because you have not had an accident, then a claim may remove that discount. You should be able to see that discount on your policy. Claims can affect that discount and how much you pay on your next renewal.

Call Your Insurance Company

Regardless of the severity of the incident or who’s at fault, you should report all incidents to your insurance company. Accidents can get complicated very quickly. If you fail to report an incident and the other party decides to sue months later, you could have more problems. Your insurance company may question why it took so long for you to report the incident. They may even non-renew your policy.

Play it safe. If you have an accident, call your insurer or agent. If they recommend it, file a claim. After all, that’s why you bought car insurance.