Reader’s Question:

My mom and I are thinking of going into a small restaurant business here in Ohio. If we use my car for delivery, will I need to inform my insurance agent about it or purchase commercial vehicle insurance?

Shane

Columbus, OH

Yes, you will need to keep your insurance agent posted about this matter. Since you will be using the car for business reasons other than your private use, then you may be required to obtain commercial vehicle insurance. This is because your personal passenger insurance policy will not appropriately cover your car because of its livery use.

Livery use is defined as using the car to deliver packages such as food or newspapers for a certain fee or tip. Since the car will be used to assist in your restaurant operations, it is best to obtain commercial vehicle insurance. This is one business decision you will definitely have to make. You would not want yourself or any of your restaurant employees to end up in an accident and be denied of benefits later just because of this oversight. Aside from possible accusations of misrepresentation from your vehicle insurance company, there is the possibility that you might end up losing the business because of enormous amounts you will have to personally shoulder if the car gets in a car crash.

The best thing is to do some research on the Internet on vehicle insurance companies in Ohio. There are a lot of companies out there that offer reasonable commercial vehicle insurance.

Tags: auto insurance policy, car insurance agent, Commercial car insurance

Reader’s Question:

Will an Alabama driver’s license and vehicle insurance be accepted in Florida?

Jimmy

Montgomery, AL

Your Alabama driver’s license and vehicle insurance coverage will be accepted in Florida or any other state for that matter. Just be careful about getting traffic tickets or accidents in Florida. Since these two states are members of the Driver License Compact (DLC), all your traffic citations in Florida will be reported back to your licensing state. If you failed to appear before the Florida Department of Motor Vehicles (DMV) or were unable pay to the ticket, there is a chance that your Alabama driver’s license will be suspended. This is pursuant to the arrangement among states that are members of the Nonresident Violator Compact (NRVC). This gives Florida the right to request for suspension of your driving privileges until the traffic citation is settled.

If you are planning to stay in Florida for a longer period, then you may need to register your vehicle in this state. Florida requires that vehicles that have been in the state for 90 days out of the year, and these do not have to be successive, need to be registered. This would also mean that minimum insurance requirements of this state need to be followed before the vehicle is approved for registration. Likewise, the driver of the vehicle needs to apply for a Florida driver’s license.

Tags: auto insurance, car insurance, DMV, traffic violation

Reader’s Question:

Good day! I’m looking for a new auto insurance company. I have problems on my previous one. I think I am not getting a good value out of my money. My question is how do I know if I caught a good auto insurance agency? Should I look after the price again?

Larry

Houston, TX

Some people think purchasing expensive auto insurance is a bit more alluring than the cheaper ones. However, this is not the case when it comes to buying auto insurance. You can get an inexpensive auto insurance that will take you a long way. It’s probably a big mistake for any car driver who just bought an expensive auto insurance only to find out that he can be better off with a cheap car insurance that has more coverage than the one he had just bought. In order for you to not make that mistake, here are a few tips on finding inexpensive auto insurance. Remember these three words, list, quote and bargain.

Make a list of good auto insurance companies, both local and national. You can find them whether through the internet or the ones you already know or heard of. You can also ask relatives and friends for a wide range of selection. Make it certain that you have more national listings so there will be a big chance for you to choose an auto insurance company that has wide coverage wherever you are in the country.
After you completed your list, try to narrow down your selection by comparing the rate they are offering. Find the insurance company which is offering the cheapest rate. Always check a quote with the same coverage. Once you have your preferred auto insurance company, take time to visit them and state your interest in one of their cheap car insurance plans. Try to negotiate with them for a cheap auto insurance policy. Usually, it is standard operating procedure for them to offer a price higher than the originally suggested. Follow these tips and you will end up with a first-rate auto insurance policy.

Tags: auto insurance premium, Car Insurance Company, car insurance quotes, auto insurance policy, auto insurance policy

Reader’s Question:

I am on my senior year, and my parents are planning to buy me a car as a gift. I don’t really know how to drive yet but they said they will enroll me in driving school here in Chicago. Could you tell me what kind of vehicle insurance should I get once I get my own car? Somebody mentioned “nonstandard insurance” to me. Will I be given that kind of insurance, too?

Nelson

Chicago, IL

Often, beginner drivers are regarded by vehicle insurance companies as high risk because of their lack of experience in driving. High risk drivers are normally offered higher-than-average premium rates because they have a tendency to cause frequent payouts than those drivers who are considered as low risk. Payouts happen when a driver is involved in an accident in which he is found at fault. As we know, vehicle insurance companies avoid payouts as much as they can because they don’t earn from it. Therefore, if they think that a certain driver can cause more damage or accidents than an average driver, then that driver will be given nonstandard insurance with a special premium rate.

Nonstandard insurance is a type of vehicle insurance that is normally given to drivers who cannot purchase insurance at standard rates because of various reasons such as poor driving record, numerous insurance claims, insufficient driving experience, high performance vehicle ownership, or insurance coverage lapses.

Go insurance shopping there in Illinois, and you may find that some companies that offer nonstandard vehicle insurance. Do not be surprised by the high rates. You could still find a way to lower this by availing of discounts offered by the company. Just ask the vehicle insurance agent about it.

Tags: auto insurance premium, Car Insurance Company, car insurance rate, high risk insurance