Tons of car and insurance questions

January 17, 2007 2:49 PM

I just moved to a new area and bought a car for the first time and have a list of questions about new cars and insurance. Feel free to answer whichever ones you want.

A) When renting a car and declining their supplemental liability insurance, does that mean you don't have liability insurance at all? Doesn't the law require all cars to have liability at least?

B) I read on the California DMV website that you have to get a CA license within 10 days of moving there. What address would you put on your license if you don't have an address?

C) Will the car insurance company adjust your premium when you finally get an address? I can put the hotel address right now but will probably be living in a different zip code when I get a place.

D) Common sense dictates that driving your car to work can't be tax-deducted. However, why does my company say you can use pre-tax dollars to get tickets for public transportation to work?

E) Is there a minimum amount of time you need to be with an insurance company, or is there a startup cost? If not, what prevents you from switching to another insurance company after 1 week with one company? Will they refund the prorated amount of your premium?

F) When I was in the dealership to byu my car, the finance manager suddenly pulled out my credit score. I had not authorized them to check my credit or anything beforehand. Can they just get your score without you knowing?

G) What's the use of un-insured motorist insurances? Would my health insurance cover me if someone without insurance hit me? Wouldn't collison insurance also cover me if someone without insurance hit me? If not, what about in states with no-fault policies?

If any of this matters, the new car is a 2007 Ford Focus and I'm living in the South Bay Area in California and staying in a cheap hotel for now.

posted by lpctstr; to travel & transportation (7 comments total)

A) The law in some states says that the *driver* has to have liability insurance, not the car. Some policies cover rental cars; by declining supplemental liability in such a state you're in effect stating that you have such a policy.

B) You can't get a license in California if you can't show proof of residence, like a utility bill, real estate title, or rental lease in your name. So don't bother.

C) Better ask your insurance agent. Get it in writing.

D) It's something some places do, with Federal approval, to encourage folks to use public transit. It's often called "TRIP" for Transit Riders Incentive Plan and in some programs you can also apply for reimbursement at the end of the year if you keep your receipts.

E) Few insurers will write for less than 6 months. They have the option to cancel that contract at any time, but I don't believe you do.

F) Yes. It costs them about $20. If you liked, you could pay $20 and whip out the car dealership manager's credit report in response, but that probably wouldn't go over very well.

G) This is a tricky business. But the large, bankrupting issues in motor vehicle claims aren't about the cost of the vehicle or the cost of health care; they're about liability. What happens if an uninsured motorist plows into you - his fault - and that causes you to lose control of your car, which then runs onto a sidewalk full of kids on a school field trip? After maiming and killing 30 kids, your car skids to a halt in the front window of Tiffany and Co., breaking the display cases open. $5 million in jewels are stolen by looters during the ensuing confusion.

Who are the lawyers going to come after? You, or the guy at fault with no money and no insurance? Think it over.
posted by ikkyu2 at 3:18 PM on January 17, 2007

A) When renting a car and declining their supplemental liability insurance, does that mean you don't have liability insurance at all? Doesn't the law require all cars to have liability at least?

Varies by state. If you have a liability policy already, then I believe it covers you when you rent a car, so there's no need to purchase the coverage twice. However, that's something you'd want to check with your provider to be sure.

E) Is there a minimum amount of time you need to be with an insurance company, or is there a startup cost? If not, what prevents you from switching to another insurance company after 1 week with one company? Will they refund the prorated amount of your premium?

My experience -- no minimum. Nothing stops you from canceling, and yes they refund the prorated amount. This was with Progressive, if it matters.

G) What's the use of un-insured motorist insurances? Would my health insurance cover me if someone without insurance hit me?

Your health insurance should probably cover you, but here's an article with some more info about uninsured/underinsured motorist coverage.
posted by knave at 3:23 PM on January 17, 2007

B) If you don't have a California Address you haven't really moved there yet...
posted by BSummers at 3:35 PM on January 17, 2007

B) Although I had all my papers ready, they did not ask for any proof when exchanging for my CA license. YMMV. Also, let it be known there is a written test at the end.
posted by ngn01 at 3:43 PM on January 17, 2007

B) I read on the California DMV website that you have to get a CA license within 10 days of moving there. What address would you put on your license if you don't have an address?

If I didn't have an address in California, I would think that I haven't moved to California yet. My domicile would be somewhere else.

C) Will the car insurance company adjust your premium when you finally get an address?

Almost certainly.

E) Is there a minimum amount of time you need to be with an insurance company, or is there a startup cost?

There is, if your contract says there is. If not, there is not.

If not, what prevents you from switching to another insurance company after 1 week with one company?

It's a minor pain in the ass?

G) What's the use of un-insured motorist insurances? Would my health insurance cover me if someone without insurance hit me?

Your health insurance would normally cover whatever treatments and conditions it covers whether or not the condition was caused by you, an uninsured motorist, a falling meteorite, or had no obvious cause.

But there are very firm limits on what your health insurance will cover. And there are copayments and deductibles and such that also add expenses. And many health-care plans only allow you to use affiliated health-care providers, or make using other providers unrealistically expensive.

The use of uninsured motorist coverage is that it will cover expenses that your health insurance might not, and might pay for care that your health insurance will not pay for, and might pay for you to use a physician or facility that's not affiliated with your health insurance company.
posted by ROU_Xenophobe at 3:44 PM on January 17, 2007

D) Common sense dictates that driving your car to work can't be tax-deducted. However, why does my company say you can use pre-tax dollars to get tickets for public transportation to work?

I think that, under 132(f), the only car-related expenses you can do this with are parking, up to $210 or so per month. Not sure whether you can do that if your employer doesn't have a plan, though.

E) Is there a minimum amount of time you need to be with an insurance company, or is there a startup cost? If not, what prevents you from switching to another insurance company after 1 week with one company? Will they refund the prorated amount of your premium?

Generally, no, nothing, yes, with every insurance company I have ever been with. But predatory ones might try to lock you in somehow. Read your contract.

F) When I was in the dealership to byu my car, the finance manager suddenly pulled out my credit score. I had not authorized them to check my credit or anything beforehand. Can they just get your score without you knowing?

I think not, except for certain pre-screened offers under certain circumstances. Check (I think) the FRCA. But, how did they check your credit? Did you give them your SSN? Did you do so on a form or request for information which authorized them to pull your credit?

G) What's the use of un-insured motorist insurances? Would my health insurance cover me if someone without insurance hit me? Wouldn't collison insurance also cover me if someone without insurance hit me? If not, what about in states with no-fault policies?

It varies quite widely based on the policies - sometimes it's unnecessary if you have comprehensive coverage.
posted by jcwagner at 5:13 PM on January 17, 2007

Not an answer to a question you asked but I wish someone told (made) me do this when I bought my first car:

Go out and buy a binder. Every time you buy something for the car or have work done on it put the receipt in the binder. In addition, print up a worksheet in Excel that has a line for what was done, the cost, the date and who did it.

This will help you if you have any issues with getting your car fixed under warranty and also helps you resell the car later.

I thought for sure there would be a blank maintenance/service log you could buy on Amazon, but all I could find was this Car Talk Road Trip Journal and Maintenance Log.

I have not read that book or even seen it in person but it does have tips and advice for maintenance, in addition to the log that you can keep track with.
posted by farmersckn at 8:59 PM on January 17, 2007