Auto Insurance Question & Answer

I have liability insurance. If I lend my car out to a friend, will my insurance pay in case of an accident?

# Best Answer

Yes. However, does he have regular access to your car? If he borrows it more than once a month, or more than ten times a year, you should add him as an operator. Also, if he cracks it up, it's great that the other guy is covered, but . . .can you afford to buy a new car? Because you won't have any coverage for YOUR car.


Car Insurance For 17 Year-Olds

17 year olds are generally not going to be aware that they have to have car insurance if they want to be legal on the road (nor can they probably afford it) so it is up to you, as their parent, to find the best insurance for 17 year olds that you can get.

It goes without saying that your teenager must have car insurance in the UK. Failure to be driving an insured car can result in a bad run-in with the law, something neither you nor your teenager wants on their record.

One of the best ways of getting a reasonable premium is to send your teen to a certified driving instructor course. 17 year olds are known to be reckless drivers, with statistics showing that 38 percent of claims made to insurance companies are by 17 to 18 year olds. Not only will a driving course give your teen the confidence and skills they need on the road, which will make them more responsible and safer on the road, it will also contribute in a very good way towards lower insurance premiums.

Before you do that, though, your teen will need to apply for a provisional driving license. You can order a "D1 Pack" from the Driver and Vehicle Licensing Agency (DVLA) at their website dvla.gov.uk (see "Online Services" and then "Online Form Ordering") to apply for one, or pick up the pack at the nearest post office. Overall, the application should cost you or your teen about £50.

Remember, when your teen is still a learner driver they are not allowed to drive on the motorways. This is really for their own good as the majority of fatal accidents in the UK happen on the motorways. However, the Pass Plus course - designed by the Driving Standards Agency (DSA) - has been created to teach drivers how to drive in adverse weather conditions and on the motorways. It basically focuses around avoiding hazards, knowing the car, driving at night, driving on duel carriageways, and driving in town or rural areas. It focuses on giving a positive outlook towards driving and building both skill and confidence with its students. For 17 year olds, the Pass Plus is the ideal course in ensuring they are confident and safe on the road. 17 year olds who need car insurance can find much lower premiums having done the course.

You don't want your teen having any run-ins with the law and so you need to also remember some of the other rules revolving around learner drivers:

Firstly, make sure that the L-Plate is visible on both the rear and front of the car. The car must have an L-Plate, and it needs to be of the certified kind - home made L-Plates (Or, D-Plates in Wales) will not do.

Secondly, the car your 17 year old is driving must be roadworthy and have a MOT certificate, as well as be up to date on its taxes.

Thirdly, a 17 year old learner driver must be accompanied in the vehicle by a driver who is fully qualified, over 21, and has a license of at least three years.

Fourthly, 17 year olds must have their eyes tested before getting on the road (this is just a good idea) and any illness such as diabetes or epilepsy must be reported to the insurance company otherwise it is insurance fraud.

Finding car insurance for 17 year olds that's well priced will take some shopping on your part, but the effort is well worth it. Many insurance companies will offer some significant discounts for doing the driving courses, as well as have no-claims discounts of nine months to a year so that a 17 year old can take advantage, as soon as they can, of driving responsibly.

Accident Damaged Cars For Sale

Accident Damaged Cars are one of the most common type of salvage vehicles available on the open market. These accident damaged cars are usually vehicles that have been taken over by insurance companies for reasons of not having to pay auto body companies from repairing damage that would cost more than the vehicle itself. The insurance companies would rather pay the owner the value of the vehicle that may be considerably less than having the vehicle repaired.

Once the car has been taken by the insurance company it is usually priced out to junk or salvage dealers who tend to either strip the cars and sell the parts or if the car is not damaged to far resale it to the public. Once the accident damaged car for sale is sold it still has a long way to go before it is able to be driven on the open road. When sold these vehicles are deemed un-drivable by motor vehicle associations. The vehicles need to go through the process of being repaired and brought back up to standards that each country deems necessary.

Now the repairs are done and you feel that the repairs are all that you need. Well, the vehicle is still not ready for the open road. Meaning, you still will not be able to register the vehicle just yet. Now, you need to have the car inspected. You don't want to drive around a car that is unsafe. I know that I would not. The inspection should be done by an authorized inspection station of the state. This inspection station will tell you if the repairs are up to par. If the repairs are not then they will recommend what repairs are still needed and which are not. If no repairs are not needed then they will give you passing paper work that you take with you to a registration station. If their are still problems that have to be taken care of either the inspection station will take care of it or you will need to take it back to the place were you had the initial work done. Once completed go back and have a final inspection done. Now you are ready for registration.

Accident damaged cars for sale are great deals but you really need to know the process when bringing these cars back to life.


Auto Insurance Claims - Totaled older car; police ticket not admissible evidence

My daughter was driving her auto in a college parking lot and was struck by another vehicle damaging her auto. Nobody was hurt but the damage to her car was extensive. The driver of the other vehicle admitted fault and both the college police as well as the local city police responded. The city police issues a citation to the other driver failure to yield the right of way. My daughter is not covering collision insurance on the vehicle due to the age of the vehicle, however the auto is worth fixing as it is a reliable automobile. Is the other drivers property insurance liable to fix the damages to my daughters auto since the citation stated fault on the other party? Thanks for your response.


Totaled older car
Repair with non-OEM parts
Repair with used parts
Salvage totaled vehicle
Higher actual cash value research
Ticket does not prove negligence
Police ticket not admissible evidence
Issued ticket fight comparative negligence
No comparative negligence

Dear Clients,

Yes, the other driver has an obligation to repair your daughter's car. If he has insurance, then you can make them pay. Just make that claim with them, and if there is any problem, contact your State Insurance Commissioner http://www.settlementcentral.com/links.php. Don't be afraid to make a complaint should the insurance adjuster give her any problem.

Here is one thing I think could cause you a problem, based upon what you told me:
"the damage to her car was extensive. My daughter is not covering collision insurance on the vehicle due to the age of the vehicle; however the auto is worth fixing as it is a reliable automobile."

So you have an older vehicle that has extensive damage. I am going to bet it will be totaled, not repaired. If the car is not worth insuring, then you may find that the repair costs are above 70% of the value and the adjuster will want to total it instead of repairing it. We see this all the time with older vehicles. Guess what? Your daughter will never get enough money from having her car totaled to buy any kind of reliable transportation.

Thus, just in case this turns out to be the case, I am going to give you some extra information on how to deal with this problem.


• First, consider lowering the repair cost by repairing with USED and/or NON-Original Manufactures' Equipment (OEM) PARTS and stipulating to ignore some cosmetic damage; that will allow the insurance company to do the repairs within the percentage of allowance of actual cash value that it has already specified; OR
• Second, buy back the car from the insurance company as salvage, repair it, re-title it, re-license it, and KEEP YOUR CAR; OR
• Third, fight the actual cash valuation with your own research and communicate in writing.

Here are the details on those three choices.

Before we get started, have you thought about keeping your daughter's car? Many times people have put a lot of money into maintenance OR EXPENSIVE REPAIRS (i.e. new transmission) in a high mileage vehicle, and they KNOW what they have will work as reliable transportation for them.

Have you considered whether or not YOU want your car "totaled"? Do you know whether or not the money you will receive will buy you anywhere near the same quality of transportation that you enjoy with your present vehicle? Will you have to incur a loan payment to get adequate transportation? What if you put a lot of money into repairs and new parts in the past 18 months? You will not get that money back in cash value of the car, but the repairs may have made your vehicle desirable to continue operating.

So, rather than taking the low offer of cash and trying to find a vehicle that will be reliable, they put the money into fixing the wreck with used parts, leaving aside cosmetic damage (who cares if your daughter drives a nine year old car with some bumps and bruises -- especially when that will reduce the repair bill a ton??).

So the first thing, if you are happy with the performance of your car, and if you have put a lot of money into maintenance or repair, as you have, would be to explore ways to keep the car.

Ask what the body shop would charge to repair your vehicle with USED and/or NON-OEM parts. You can negotiate to leave some cosmetic damage showing to save money. I would not be surprised to see up to 40% come off their repair bill in that case. If you have a car that was running fine, why not keep it, even if you have to drive around with some dents showing?

Find out the maximum amount that the insurance company will pay for repairs before they elect to total your vehicle. Then arrange for your repairs to be done within that limit. This is my first choice and better if you can make it happen. If the adjuster still wants to total your car, then you have to go to the next step.

Here is one way to get the insurance adjuster at her own game. Let's say that you value your car at $5,000, but the insurance adjuster, after considering the latest documentation you have to offer, values it at only $2,800. Don't forget, that is her value BEFORE THE ACCIDENT.

One would have to consider the amount of damage done in the accident to come up with a salvage value, but it should be a lot lower than the value before the accident, which the adjuster already told you was only $2,800. So, before you decide to total the car, ask the adjuster what the salvage value would be. That is the amount that the company will get for the car after the accident, in its post-accident state, without any repairs having been made. In this example, depending upon the cost of the repairs, the salvage value could be around $700. Hey, this is ONE advantage of having them give your car a low actual cash value: the salvage value should be pretty low!

NOW, if you were to pay that amount and then to set up the repairs to be done with USED and/or NON-OEM PARTS, and perhaps forgoing some of the strictly beauty finishing items, you could get repairs done for a lot less than the estimate given to the insurance company. Say, around $1,400.

Plus, once the car is repaired, you will have to take it to the state patrol to be inspected as a salvaged vehicle. You will need paperwork from both the insurance company and the auto body shop that confirms both the amount you paid for the salvage, the fact that you are authorized to title the vehicle, and a receipt for the work and parts from the auto body shop. You pay for the inspection and then the re-licensing through the Department of Licensing. So leave aside around $100 for the state inspection, plus the cost to get new title, license plates, and tabs. The cost for the latter will be the same for any other vehicle of the same price as your salvage buy-back price.

Here is how the math would work out. You get the actual cash value that you and the adjuster agree upon, which is going to be $2,800 in this case. Then you have to buy back the car from the insurance company, which in this case will be the $700 salvage.

You will have the auto body company authorized to repair with USED and/or NON-OEM PARTS, which in this case, will bring the cost of $1,300 (thus, for state licensing fees, the "value" of the car to you is what you paid, or $2,000: $700 plus $1,300). To that you will add the cost of inspection ($100) and re-licensing (say 8% sales tax times the salvage buy-back price of $2,000, equals $160).

In summary, you got $2,800 cash for the car, and you paid out $700 plus $1,300 to get it repaired and ready for inspection and licensing, which are $100 and $160, respectively. Thus, your total out-of pocket outlay will be the $700 plus the $1,300 plus the $100 plus the $160, for a grand total of $2,260. So your daughter comes out with a repaired and re-titled car and $540 in her pocket.

Now, changing topics back to how to get that value up for the insurance adjuster, let's get started for you. The first tasks are to get at the actual cash value and next throw out that outrageous offer that we expect they will make to your daughter.

My favorite sites for valuation are www.Edmunds.com and www.autotrader.com. They want to know your zip code, and then they ask for a range in miles to search. Don't limit yourself to your city: it is reasonable that someone could go up to 300 miles to pick up a used car. That way you will get a lot more information. Be aware that you should pick the option "any distance" from your zip code. You can use information from local papers, advertising flyers, car dealerships, and the Internet.

Be aware that the prices shown are the "asking" price, not the actual cash value. But also be aware that the insurance adjusters have used a computer scan of sales that were at the trade-in value, NOT the actual cash value.

If you have made major item replacements, above and beyond normal maintenance, you need to document them and ask for a review of those extras. For example, a rebuilt transmission or the like will add value to a used car. How about new tires or a new stereo system? The issue is: how much (if any) did they increase the FMV or actual cash value of the car. See this link and scroll to the bottom for more information on that topic. Car Accidents: Totaled, Repair, Valuation, Your Rights http://www.settlementcentral.com/page0007.htm

That should be more than enough information to help your daughter retain her vehicle.

I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the feedback form on this site and leave some feedback for me.


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How to Avoid Speeding Ticket Penalties

If you find that you have got a speeding ticket or you have gone through a red light or what ever you do to lose demerit points from your license, I have heard of a method to ensure that you DON'T lose any points.

It is this:
When you get your fine, send a check to pay it, and if the fine is, say $79 then make the cheque out for $82 or some small amount above the fine. The system will then have to send you a cheque back for the difference so eventually you get a cheque for $3 .

Now, here is the trick -
DON'T cash the check -
Throw it away. Demerit points are not removed from your license until all of the financial transactions are complete. If you don't cash the cheque then the transactions are not complete, however, the system has got its money so it is happy and doesn't bother you anymore.