* Do I have to be licensed in order to purchase auto insurance?

The Law does not put any restrictions on purchasing auto insurance by individuals. You can buy insurance regardless of either you have a drivers’ license or not. However, the Law does require that you should have some type of permit to drive a motor vehicle - that could be a learner’s permit, a driver’s permit, a foreign license, a temporary license, a conditional license, or a regular driver’s license.

Also, the Law might not require you to carry any valid driver’s document in order to buy auto insurance, but insurance companies can certainly do so. Underwriting guidelines of most insurance companies will require a valid driver’s license before they can offer you auto insurance. Especially strict are high-class companies, such as “21st century” or “State Farm”. They will not provide insurance to anybody without a valid unrestricted license, nor will they insure individuals who do not have at least three years of licensed driving experience without points or accidents. Smaller insurers are usually less fussy.

* What should I do immediately after a car accident?

The first thing to do is to check injuries, because life and safety of people is more important than car damages. Call the ambulance immediately if anybody is injured. The second step is to examine and note specific damages to all motor vehicles involved in the accident. Do not forget to write down the names, licence numbers, addresses, and vehicle descriptions of all people involved and those who may have witnessed the accident. Call the police, even when the accident is not serious, in order to prevent any disagreements. And do not forget to notify your insurance agent about the accident right away.

* What car should I buy in order to save on insurance?

When insurance companies calculate the costs of your auto insurance, the first thing they consider is not what car your drive, but other things, such as your credit scoring and your driving history. However, the type of car is considered, too, especially such aspects as how much damage the car could incur (SUV would be expensive), how much it would be to repair the car (Cadillac and Mustang would be expensive), and how many reliable safety features the car has. Generally, in order to save on insurance, the best car to purchase is a small and affordable vehicle with good safety features. Among the top cheapest vehicles to unsure are Honda Odyssey, Chevrolet Venture, and GMC Safari.

* Is it possible to transfer my present insurance onto a new vehicle?

Yes, such mechanism exists in most insurance companies. Most probably, the transfer will be automatic (depending on the policy of your insurer), and the only thing you will have to do is to notify your company ASAP about having a new vehicle. Also, your premium may be increased.

Related:

•  Auto Insurance: Frequently Asked Questions (Part 1)