Q. If you get a drivers licsense, do you automatically have to pay insurance even if you dont have a car??
A. No. The insurance is for the car, not for your license.
Is it true about how you can avoid paying car insurance?
Q. I was once told by one of my professors that the law allows you to not pay car insurance as long as you have a certain amount of money on reserve for paying the cost of the accident (if the judge found you to be the cause.) Is this true or the law have changed?
If it's true, it would sound logical to test the stats to see the probability of you getting into an accident and the time you can avoid paying insurance.
Any thoughts?
If it's true, it would sound logical to test the stats to see the probability of you getting into an accident and the time you can avoid paying insurance.
Any thoughts?
A. The easiest way to get rid of paying car insurance is to sell your car and purchase a bus pass for your city. You'll save on gas, car maintanance, and insurance. If your professor told you what you claim he said, ask him for the details.
In a general journal, where would a paid insurance policy go?
Q. I have an assignment in Accounting and we're learning how to do General Journal entries.
The one I'm stuck on says "Paid 2,100 cash for an insurance policy covering the next 24 months."
Since you're paying cash for it, would that mean the amount of money would go into the credit side since it's a decrease in cash? What type of account would a paid insurance policy go under anyway?
The one I'm stuck on says "Paid 2,100 cash for an insurance policy covering the next 24 months."
Since you're paying cash for it, would that mean the amount of money would go into the credit side since it's a decrease in cash? What type of account would a paid insurance policy go under anyway?
A. You should
Dr Prepaid insurance $2,100
Cr Cash $2,100
Since the policy is for 2 yrs, you would reverse $1,050 to income statement at the end of the 1st and 2nd yrs.
Dr Insurance expense $1,050
Cr Prepaid insurance $1,050
At the end of the 2nd yr, your prepaid insurance would have a 0 balance.
Dr Prepaid insurance $2,100
Cr Cash $2,100
Since the policy is for 2 yrs, you would reverse $1,050 to income statement at the end of the 1st and 2nd yrs.
Dr Insurance expense $1,050
Cr Prepaid insurance $1,050
At the end of the 2nd yr, your prepaid insurance would have a 0 balance.
Do you have to pay insurance once you get your driver's license?
Q. Someone told me that once you get your driver's license (whether you have a car or not) you have to begin paying insurance. Is this true? I live in Nevada, by the way.
A. Someone told you wrong. We don't insure people with drivers licenses. We insure vehicles. if you have no vehicle, you have nothing to insure.
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