Tag: Vehicle Insurance

8
Jun

Buying Insurance for a Car That Is Not Mine

Generally, car insurance covers the vehicle owned by the policyholder. Sometimes, however, you can buy a policy for a car you don’t own.

A few instances where you can buy car insurance without being a registered owner include:

  • You regularly use one of your family members’ or friend’s car
  • You take care of the car on behalf of the owner, who either doesn’t drive or just drives occasionally.
  • You are still paying off the car’s purchase value and don’t have its title

How to Insure a Non-Owned Car?

Depending on your circumstances (mentioned above), you can choose one of the following options to insure a non-owned car:

  • Include Your Name on the Vehicle Owner’s Policy

    If you live with the car owner, you can include yourself as a driver on their policy rather than buying a separate insurance policy. If you don’t live with the car owner and use their car occasionally, you can add yourself as a “permissive use” driver.

    In case you are a caretaker and the car owner is an employer, not a family member, you can be listed as a primary driver to their policy. Likewise, if your employer doesn’t have a valid driver’s license or doesn’t drive, they can be listed as the owner in the policy rather than a driver, and you can be added to their coverage.

  • Add Yourself to the Vehicle Title or Registration

    Adding your name to the title or registration gives you “insurable interest,” meaning you have the right to buy insurance to save the vehicle from damage/loss.

    If you are the car’s co-owner, you can be listed as the “additional insured” to the policy. Additionally, if you drive your parents’ car but reside elsewhere, you should have your name added to the title or registration to purchase a separate insurance policy.

    If you buy a car from a private seller with an installment plan, they may keep the title until the full amount is paid. Nevertheless, you can ask them whether they can transfer the title to you to help you buy a car insurance policy. In these cases, the seller can be listed as a lienholder on the title.

  • Add the Car Owner as an Additional Interest to Your Policy

    You can buy car insurance in your name by adding the car owner as an additional interest (meaning they have a stake in the vehicle and should be notified about policy changes) to your policy. Though it keeps the vehicle owner involved, only some insurance companies offer policies this way, so check with your provider for more clarity.

  • Buy Non-Owner Car Insurance

    A non-owner policy provides supplemental coverage (secondary to what’s owned by the owner) when you drive borrowed/rented vehicles. For example, if the car owner’s coverage limits are inadequate to satisfy a liability suit, it offers compensation for at-fault incidents.

    Because no car is named on the insurance, collision and comprehensive coverage will be unavailable. You cannot buy the policy if you frequently use a non-owned car.

If you want to learn more about car insurance, contact us today at Abatelli Insurance Group. We will help you find the right insurance coverage to protect your car.

11
May

Why Are Car Insurance Premiums Likely to Increase in 2022?

Despite providing refunds to customers in billions, car insurance profits have increased during the pandemic, with only a few drivers on road, causing the number of accident-related claims to drop dramatically. Even with increased profits, auto insurance companies are likely to increase premiums due to pandemic-induced supply-chain and labor shortages, high demand for new and used cars, careless driving, etc.

Buying and Repairing Cars Becomes Expensive

A semiconductor shortage and increased demand from drivers have increased the cost of new and used cars.

The cost of repairing cars has also increased due to the shortage of auto supplies and increased use of advanced driver assistance systems (ADAS). ADAS includes expensive and difficult-to-fix sensors and cameras to assist drivers while parking and driving. Therefore, even a minor accident can lead to costly repair bills, increasing claim amounts. Besides, the shortage of auto mechanics will also contribute to increased repair costs.

Changing Driving Habits

Car accidents caused by distracted driving have been increasing for years. According to the National Highway Traffic Safety Administration, distracted driving-related accidents have contributed to 9% of deaths in 2019. The National Association of Insurance Commissioners has labeled distracted driving an epidemic in America.

Driving faster has become usual after the pandemic, further increasing the possibility of car accidents. According to the US Department of Transportation, 38,680 people died in car crashes in 2020, which is the highest number of accident-related deaths since 2007.

No More Pandemic-Related Restrictions

As pandemic-related restrictions have been removed in most states, more drivers are back on the road. This means the number of auto accident claims is likely to increase, triggering increased premium rates in 2022.

How to Find Affordable Car Insurance?

Despite the reason for an increase in premiums, you can save on your car insurance with the following tips:

  • Look for Discounts

    Some insurance companies offer discounts for taking a defensive driver course, having a clean driving record, paying premiums on time, etc. You can check with your provider whether they offer any such discounts.

  • Buy Only the Required Coverage

    Review your auto insurance policy every year and exclude any unwanted coverages. For example, collision and comprehensive coverages are not needed for an older car, as they pay only the current market value minus deductible if the car is totaled.

  • Increase Your Deductible

    Your auto insurance premiums will decrease if you pay a higher deductible (out-of-pocket costs) for claims.

At Abatelli Insurance Group, we customize auto insurance policies according to your specific coverage requirements and budget. Get a quote online or contact us today to get a personalized car insurance policy.

COVID-19 Update

We are no longer working remotely. You can reach us at (718) 352-6000 Letter to Policyholders