Adding a driver on your Auto Insurance

The time may come, where you cannot drive your own car because you are out of town or country. During this time, is it possible for someone else to drive your car? Of course, anybody can drive your car as long as he has a driver’s license and is capable of driving. But, he needs to make sure that he will not violate any traffic regulation, especially if the owner does not know that he is using the car. So, it would be best to ask for permission.

What if you are driving someone else’s car and then, you met an accident? What if your borrowed car got damaged? If it is not your fault, then someone else must pay for your damages. But, if it is your fault, then you have to pay for your borrowed car’s damages as well as damages incurred by the other party.

Will you pay from your own pocket? If this car is not yours and you are listed as a driver under the insurance policy of the car that you have just borrowed, then you may not spend anything because the insurance company will handle the situation. But, if you are not listed as a driver under the owner’s car insurance policy, then you must pay for all the expenses met during the accident.

Who can I list as additional driver?

Before accepting the car insurance policy, you have to ask the insurance company agent if you can add a driver covered in your insurance policy. If they will tell you that you may add 4 to 5 drivers, including you, then you have to list the names of the people whom you allow to drive your car.

Adding a driver is also important, especially if the owner is not around and the people you left needs to use the car for emergency cases. There are also times, where you may ask someone to drive for you, especially if you are not currently capable of driving. Another example is that when you are suffering from illness or you need a driver to drive for you every day.

The same thing also applies when you would like to drive someone’s car. For example, you and your wife have your own cars. But, your car is under inspection or maintenance. And then, you would like to use your partner’s car, then it would be best if you are also listed in your partner’s car insurance policy as an additional driver, especially if you are planning to use your husband or wife’s car often.

Anyway, it could have been better if you will discuss this concern with your insurance company because they have different policies about adding a driver. The number of drivers you may add will actually depend on the type of insurance policy and cover that you will avail. In my opinion, adding a driver under your car insurance policy is just a way to protect you and your car from future unexpected expenses that may arise.

 

Insurance for Rental Cars

Is Insurance Included with Rental Cars?

When renting a car, it is important to know what you are covered for when it comes to insurance. Many people don’t know exactly what they can claim or can’t claim in the case of an accident. Luckily, most car rental companies do include insurance cover within the quoted price. But what many don’t know is that the excess amount is usually higher than what you are expecting it to be. We asked a Perth car hire company about what is included when customers like you and me, rent a car from them. The answer in short was it depends the the type of cover you are after. So what they are saying is that you can have different levels of insurance protection. The higher the level of protection you are seeking, the higher the price that you usually have to pay.

Insurance Excess

When it comes to car insurance, one of the most important factor is the amount of excess that is payable when you make a claim after an accident. For example, with a $500 excess – if you had an accident and the quoted price to fix the damage is $2500; you are simply out of pocket by $500. The rest would be payed for by the insurance company, which is usually dealt with by the car rental firm. What you should be trying to avoid is the ridiculous amount that some companies charge for excess, for example we know of a company who would charge $2000 for excess. You heard right! It means if you are involved in an accident, be prepared to fork out $2000 to get it fixed.

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Additional Premium for Hire Vehicles

Does the high price that you sometime see for insurance actually justified? In short, most yes. For example, you may be charged an additional fee for being a young driver. But if you think about it, it is sort of fair – since you are at higher risk (owing to being an inexperienced driver) of being involved in an accident. At the end of the day, vehicle hire company need to cover the cost of lending you the car. Otherwise there is no point of running a business, right! But at the same time, the government need to regulate what charges are considered fair – since car rentals are considered a necessity especially for tourists during a holiday trip. An old saying goes something like this: only pay for extras that you think will save you the headache after an accident. In general, the chances of being involved in accident is relative minor. For example, when was the last time you were involved in a car accident whilst using a rental car? Once or none right? That is why, many will never consider paying for additional protection or reduced excess premium.

Ultimately, the choice is yours. Consider the risks and of course your budget. So what do you think about this topic? Have you ever been involved in an accident in a hire car or have you ever been in a situation where you think that you have been unfairly charged? Let us know by commenting on this page. We will try our very best to reply as soon as possible.

Rights and Responsibilities of a Car Insurance Policy Holder

As a car insurance policy holder, do you know your rights and how to use them? Have you reviewed your rights before and upon receiving the policy that you have just availed? As a responsible holder of a car insurance policy, you will not only receive whatever coverage you have signed. You must learn how to use these rights in different situations. Car Insurance holders have different policies to avail, but you all have the same rights.

We may have rights, but this only applies to us, if we are going to follow the rules of the insurance company. For example, we can file for a claim after damages incurred during the car accident. In such a way, we can practice our right to claim as long as we are claiming for something that is covered under the insurance that we have paid.

But, this claim may not be approved, if the rightful people will find out that we did not follow the rules of the insurance company. For example, that is if we are claiming for something that is not under our coverage, especially, if we are at fault during the accident. This is the reason why it is very important for us to know our rights and be a responsible auto insurance holder, too.

Cancelling an Insurance

Do you know that you have the right to cancel an insurance policy after availing it? A car insurance company cannot stop you from canceling your policy and it is stated under the Consumer Bill of Rights. This usually happens when, after availing a car insurance policy, you have found a cheaper one with the same coverage and benefits.

If you are a car insurance policy holder, will you not cancel the current policy after finding a cheaper deal? This decision is in your hands, so you better think if you will continue it or not. And then, please be reminded that before canceling the current policy. You have to make sure that you have already availed the new policy to avoid breaking the laws under financial responsibilities in your country.

Denied due to Credit History

As a car insurance company, you should not deny an individual’s application for a car insurance policy just because of his credit history or records. If a company will reject your application only because of this history, then this particular company is not following the rules of their country. Again, you can find this under the Bill of Rights of Consumers.

As an applicant, you may still accept that you were rejected because of other factors, such as false identity, expired driver’s license or minor criminal offense. You need to fight for your right as a potential client and customer. Remember that you are a consumer and you to practice your rights. Do not let other people put you down and ignore your rights. As long as you are being responsible in everything that you are doing, the authority and law will be on your side. So, do not hesitate to make complaints if the reason for denying your application is not valid or acceptable.