How does car insurance work? (also whats better buying a car vs leasing)?

Q. well im 16 right now. planning to save up till 18 and buy a car. my first question is, how does car insurance work? i know you have to pay monthly and depending on each car its different but would car insurance be cheaper when the car is leased? or when its bought?

also i know each car depreciates alot every year. at first i was thinking of leasing it but now im not sure. can someone tell me what would be a better choice on the long run?

A. Insurance companies have the data on millions of miles of travel for millions of people of all ages; using this data, they know exactly how likely you are to get into an accident and how much it will cost. Using this data, they bill you ahead of time for your accidents in monthly increments (actually, this is a gross simplification but you get the idea).

Do not lease a car!
Leasing is total fail - the only way leasing works in your favor is when your company pays for it (or you are able to deduct the payments from your taxes). The leasing company figures out how much you will drive over the life of the lease, how much the car will depreciate, and what they will be able to sell the car for when - they add all this up and divide it by the number of months of the lease. Then they add in their profit. You have to pay a couple thousand dollars to begin the lease and when the lease is over, they will bill you for any mileage over what they calculated and bill you for any loss when they sell the car. Most leases are bogged down with so much fine print (and BS) that you have no real idea of the cost you only know what the monthly payments are -- remember that you have to pay a lump sum at the beginning and another at the end.

Leasing is for losers - if you can work the lease so your company is the loser, good for you.

Original Question

Is car insurance absolutely needed for a car?

Q. I will be purchasing my first car sometime this year. I don't know anything about insurance and I'm really not knowledgeable when it comes to things like this. So my question is, is car insurance a requirement when owning a car? Do you need it? Is it expensive and how does the process work?

Cause I'll be getting my first car soon and I don't really know insurance plays a role in all of this.

A. If you are in the USA, yes, car insurance is required by law in every state but NH. If you are leasing or borrowing money to buy a car, the leasing company or lender will require full coverage insurance to protect their investment.

Original Question

Do car insurance companies know when you receive a moving violation?

Q. When you ask for a new car insurance quote from your current or a new provider they always ask the question if you have been involved in an accident or have been pulled over recently etc, etc. My question is, do they already know this info and are they maybe testing me or do they really don't know? I've had two moving violations within the past 5 years and I'm wondering how to answer these questions when I shop for insurance on a new vehicle.

A. if you have gotten a ticket or two or three, i would stay with the same company and not make too much noise. unless you get in an accident, the likelihood of the insruance company running your driving record is almost zero. they won't know. if you try to go to another company - they will run your driving record - bank on it. and, the ticket(s) will show up and their quote will be higher as a result. Your current company does not know about it. Stay w them and don't make any noise.

Original Question

Question about paying different types of house bills Chicago IL?

Q. Ok so basically my girlfriend an I want to move into a studio apartment together in Chicago, IL. Rent with free heat comes to 500 a month. Now we will both together be making 1.1 grand to 1.8 grand while going to college. Question is without car insurance and about 80 to spend on gas a month, what other bills do I have and will I be able to cover it? We only eat about 100-150 whorth of food a month.

A. I don't know...what about electricity, water, medical expenses, incidentals, clothing, personal care products etc etc...Haveing no insurance is just stupid.

Original Question

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Why do people keep posting questions in the environment section that have nothing to do with the environment?

Q. Seriously. Questions on car insurance, where to buy stuff.... all kinds of unrelated stuff.

I don't get it.
Good point lin.... yahoo needs to do a better job of suggesting a category.... for this question the environment didn't even come up in the suggestion list.... go figure.

As for "hate"... no, more like frustration.

A. most likely, yahoo suggests a category, and they don't realize that they can/should correct it.

Original Question

Do I need my car insurance for an oil change?

Q. I know this might sound like a dumb question, but I'm 16 years old so it is my first time driving on my own and having my own car. I'm wondering, do I need proof of car insurance to get a basic oil change?
@ Sweetie- Don't worry, I have car insurance. I was just curious.

A. No they will change it. You WILL need your car insurance with you everywhere you drive however. It would be one of the first things a police officer would want to see should you ever be stopped by them. Good luck...and hey..no questions are too dumb. Good people help good people, just because we all love each other! Good luck! And drive safely! I know you will!

Original Question

How much would car insurance be for an 18 year old male?

Q. I currently am under my mom's car insurance and I have a 2000 Ford Focus. I plan on trading that in for a 2012 Ford Focus, and I was just wondering how much it would cost for me to insure that car. My monthly insurance payments aren't that expensive. I just don't want to be paying more than I can afford.

A. Darryl, first off don't trade your car in. Sell it privately and put it towards the purchase of your car to save money on those payments. The dealership will rip you off with what they will give you for trade in. Insurance rates fluxuate all the time, so your going to have to call around to get some qoutes. There is no deffinete answer to your question because there are so many variables. If you stay in school you may be eligable for good student discount, plus many more you'll just have to call around. 12 years ago when I was 18 I had a 95 corolla and my payments were like 150 a month, but where I lived was a huge factor (TX has the highest insurance rates in the country). Just be sure to ask a lot of questions when you call around. I hope this helps

Original Question

Will my car insurance go up if I was side swapped while driving a friends car?

Q. I was 100% not at fault. We called cops, etc... But my question is will my personal car insurance go up? I was driving my friends car..

A. Since you were the driver of the vehicle, the accident will appear on your DMV driving record. However, if you provide proof the accident was not your fault the insurance company will not raise your premium.

For your friends insurance, they will not raise the premium on their policy, for they were not the driver. The only affected driver will be the person that hit you.

Original Question

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Do I need my car insurance for an oil change?

Q. I know this might sound like a dumb question, but I'm 16 years old so it is my first time driving on my own and having my own car. I'm wondering, do I need proof of car insurance to get a basic oil change?
@ Sweetie- Don't worry, I have car insurance. I was just curious.

A. No they will change it. You WILL need your car insurance with you everywhere you drive however. It would be one of the first things a police officer would want to see should you ever be stopped by them. Good luck...and hey..no questions are too dumb. Good people help good people, just because we all love each other! Good luck! And drive safely! I know you will!

Original Question

How much would car insurance be for an 18 year old male?

Q. I currently am under my mom's car insurance and I have a 2000 Ford Focus. I plan on trading that in for a 2012 Ford Focus, and I was just wondering how much it would cost for me to insure that car. My monthly insurance payments aren't that expensive. I just don't want to be paying more than I can afford.

A. Darryl, first off don't trade your car in. Sell it privately and put it towards the purchase of your car to save money on those payments. The dealership will rip you off with what they will give you for trade in. Insurance rates fluxuate all the time, so your going to have to call around to get some qoutes. There is no deffinete answer to your question because there are so many variables. If you stay in school you may be eligable for good student discount, plus many more you'll just have to call around. 12 years ago when I was 18 I had a 95 corolla and my payments were like 150 a month, but where I lived was a huge factor (TX has the highest insurance rates in the country). Just be sure to ask a lot of questions when you call around. I hope this helps

Original Question

What is the cheapest car insurance and that is good for a teenager?

Q. Im starting to almost drive already but i need to knowwhat insurance company has the most economical car insurance for teens?? please let me know and tell me how much you pay for ur kids or even for yourself

btw my car is a 2004 volvo s40 2.4i if that matters.

A. If you are a minor (less than 18 years old) you can not buy insurance. Your parents must add you to their policy instead.

This is just about the worst possible place to ask this question. About the best you can hope for here is a wild guess. You would be just as well off picking a random number out of a hat.

For one thing, there are too many variables involved for someone to even give a ballpark figure. Things like your age, gender, location, driving record, vehicle getting insured, local minimum requirements, coverage desired, deductibles, etc.

Keep in mind that if you finance the vehicle the lender will require that you keep full coverage insurance until the loan is paid in full. Your lender will be immediately notified of any changes to this vehicle's insurance status. Full coverage insurance will be significantly more expensive than the minimum liability insurance.

Get up and walk away from the computer.

Walk over to the telephone.

Near the telephone, most people keep a large book

Many times this book will have colored pages, usually yellow

Open the book to the colored pages section and look for the heading Insurance

Here you will find the telephone numbers to people in your area who actually sell insurance. Imagine that.

Pick up the telephone and dial one of these numbers. If you are a minor, have a parent make this call.

A friendly person will answer. This person will be either an insurance agent or a person that works for them. Ask this person your question. This person may ask you a few questions to get some added details. Have the VIN number of the vehicle getting covered by this policy handy if possible. If you do not own the vehicle yet and do not have the VIN then the year, make, and exact model will work.

In no time, you will have a quote on the price. HINT: A quote will be far more accurate than any wild guess that you might get here.

Write down some of the details on a piece of paper. Phone number, name of the person you spoke with, price, deductibles, coverage, etc.

Next, repeat the process using one of the other telephone numbers you found in the telephone book in the colored pages section under the heading insurance.

After you have spoken to at least a few insurance agents, you can start to compare prices, coverage, and deductibles. Then pick the insurance agent that has the best deal for you, call them back, and then strike a deal.

One last piece of advice. You are far better off going through a local insurance agent where you know them and they know you. Let�s say a few months after you get your insurance you get broadsided by an uninsured motorist. Who would you rather be working with? A local person that you know and knows you. Or hear "Press 1 for English", pause "Your call is important to us. Please wait for the next available agent...� a very very long wait, then finally get someone from a far away call center that barely speaks English. Sometimes the cheapest insurance is not the best insurance. Think about it for a bit before you make your final decision.

Original Question

How much is car insurance for a 16 year old living in Florida?

Q. Hi, I'm fifteen and I'm getting my license soon. I was wondering, what's the average cost for car insurance for a child at the age of 16 driving a Ford Mustang GT? I included my car model if that's any help at all to you. I also live in Central Florida.

Thanks in advance!

A. There's no way we can answer that question with what you've given us, and "central Florida" covers a lot of territory. You'll just have to call an agent, probably your parents' agent since you'll be on their policy, and get a firm figure. Be prepared for some horrendous figures, though; there's just no way around that for a new, young driver with an expensive car. Then keep them from going any higher by driving safely and smart.

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Will getting a ticket in them mail from a Red Light Camera in Pennsylvania effect your car insurance?

Q. At a intersection I was in a turning left lane. We must of been sitting there for atleast 8 mins and it went through atleast 3 light changes and did not let us go. The person infront of me and myself went to take the left turn.

My question is will it effect my car insurance? From what I understand its a point system and does not effect your car insurance but I just wanted to make sure.

A. No it will affect your insurance. The effect will be a higher bill.

Original Question

How much does a male aged 17 pay for car insurance?

Q. Well I'm 17 years old and I'm currently taking driving lessons and hopping to do my driving test really soon. So the reason i asked this question is to just find out how much you pay for your car insurance.

P.S If things do go well and I pass my driving test, I am planning to get a 05 Reg Vauxhall Corsa 1.2 SXI. So it would help if someone owns a 1.2 car and they're 17 years of age to answer this question.

Thanks!!

A. Your going to pay high rates no matter what car you drive.

Your an inexperienced driver and will be put into an AR (assigned risk) group. Though, most insurance companies will lower your rate each renewal year. Not by much, but you will see a difference.

=)


Been there, done that, with son.

Original Question

Why do people keep posting questions in the environment section that have nothing to do with the environment?

Q. Seriously. Questions on car insurance, where to buy stuff.... all kinds of unrelated stuff.

I don't get it.
Good point lin.... yahoo needs to do a better job of suggesting a category.... for this question the environment didn't even come up in the suggestion list.... go figure.

As for "hate"... no, more like frustration.

A. most likely, yahoo suggests a category, and they don't realize that they can/should correct it.

Original Question

Do I need my car insurance for an oil change?

Q. I know this might sound like a dumb question, but I'm 16 years old so it is my first time driving on my own and having my own car. I'm wondering, do I need proof of car insurance to get a basic oil change?
@ Sweetie- Don't worry, I have car insurance. I was just curious.

A. No they will change it. You WILL need your car insurance with you everywhere you drive however. It would be one of the first things a police officer would want to see should you ever be stopped by them. Good luck...and hey..no questions are too dumb. Good people help good people, just because we all love each other! Good luck! And drive safely! I know you will!

Original Question

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Do car insurance companies know when you receive a moving violation?

Q. When you ask for a new car insurance quote from your current or a new provider they always ask the question if you have been involved in an accident or have been pulled over recently etc, etc. My question is, do they already know this info and are they maybe testing me or do they really don't know? I've had two moving violations within the past 5 years and I'm wondering how to answer these questions when I shop for insurance on a new vehicle.

A. if you have gotten a ticket or two or three, i would stay with the same company and not make too much noise. unless you get in an accident, the likelihood of the insruance company running your driving record is almost zero. they won't know. if you try to go to another company - they will run your driving record - bank on it. and, the ticket(s) will show up and their quote will be higher as a result. Your current company does not know about it. Stay w them and don't make any noise.

Original Question

Question about paying different types of house bills Chicago IL?

Q. Ok so basically my girlfriend an I want to move into a studio apartment together in Chicago, IL. Rent with free heat comes to 500 a month. Now we will both together be making 1.1 grand to 1.8 grand while going to college. Question is without car insurance and about 80 to spend on gas a month, what other bills do I have and will I be able to cover it? We only eat about 100-150 whorth of food a month.

A. I don't know...what about electricity, water, medical expenses, incidentals, clothing, personal care products etc etc...Haveing no insurance is just stupid.

Original Question

How agent get commission in auto car insurance?

Q. i have assignment to do and i need your help please. my project about auto car insurance. my question is, what are steps that agent need to get commission? and how he get it.
thank you.

A. 1. Get licensed to sell insurance
2. Get appointed with an insurance company to sell their policies
3. Sell auto insurance policies
4. Wait two months, for the insurance company to mail you your commission check.

Original Question

Will getting a ticket in them mail from a Red Light Camera in Pennsylvania effect your car insurance?

Q. At a intersection I was in a turning left lane. We must of been sitting there for atleast 8 mins and it went through atleast 3 light changes and did not let us go. The person infront of me and myself went to take the left turn.

My question is will it effect my car insurance? From what I understand its a point system and does not effect your car insurance but I just wanted to make sure.

A. No it will affect your insurance. The effect will be a higher bill.

Original Question

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How agent get commission in auto car insurance?

Q. i have assignment to do and i need your help please. my project about auto car insurance. my question is, what are steps that agent need to get commission? and how he get it.
thank you.

A. 1. Get licensed to sell insurance
2. Get appointed with an insurance company to sell their policies
3. Sell auto insurance policies
4. Wait two months, for the insurance company to mail you your commission check.

Original Question

What does each question on a car insurance mean and how does it increase your rate?

Q. For example have you had insurance prior to this and what date it ends.
How much you drive the car.
Also I am 20 and have had insurance my prior rate was 700 for 6 months. I had two at fault accident before that insurance at 18. But only one was really at fault and I have to get proof and the other drops of my record on the 13th of August. I am trying to figure what a estimate of what my car insurance would be for a liability insurance in TX now

A. Impossible to answer your question. Each company would ask different questions and there is no standard "One size fits all" form that insurance companies use.

The questions they ask are to establish your risk factor so they can set an estimate of costs, based on what you have told them. Of course once you accept the policy and they run the information, it's subject to change if you have left something out.

The best way to find the rates you would be paying is to find an independent agent, one not tied to any one company, give him your needs and information, and let him search his data base for the best company for your specific needs. Good luck with the quest.

Original Question

Will getting a ticket in them mail from a Red Light Camera in Pennsylvania effect your car insurance?

Q. At a intersection I was in a turning left lane. We must of been sitting there for atleast 8 mins and it went through atleast 3 light changes and did not let us go. The person infront of me and myself went to take the left turn.

My question is will it effect my car insurance? From what I understand its a point system and does not effect your car insurance but I just wanted to make sure.

A. No it will affect your insurance. The effect will be a higher bill.

Original Question

How much does a male aged 17 pay for car insurance?

Q. Well I'm 17 years old and I'm currently taking driving lessons and hopping to do my driving test really soon. So the reason i asked this question is to just find out how much you pay for your car insurance.

P.S If things do go well and I pass my driving test, I am planning to get a 05 Reg Vauxhall Corsa 1.2 SXI. So it would help if someone owns a 1.2 car and they're 17 years of age to answer this question.

Thanks!!

A. Your going to pay high rates no matter what car you drive.

Your an inexperienced driver and will be put into an AR (assigned risk) group. Though, most insurance companies will lower your rate each renewal year. Not by much, but you will see a difference.

=)


Been there, done that, with son.

Original Question

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How agent get commission in auto car insurance?

Q. i have assignment to do and i need your help please. my project about auto car insurance. my question is, what are steps that agent need to get commission? and how he get it.
thank you.

A. 1. Get licensed to sell insurance
2. Get appointed with an insurance company to sell their policies
3. Sell auto insurance policies
4. Wait two months, for the insurance company to mail you your commission check.

Original Question

What does each question on a car insurance mean and how does it increase your rate?

Q. For example have you had insurance prior to this and what date it ends.
How much you drive the car.
Also I am 20 and have had insurance my prior rate was 700 for 6 months. I had two at fault accident before that insurance at 18. But only one was really at fault and I have to get proof and the other drops of my record on the 13th of August. I am trying to figure what a estimate of what my car insurance would be for a liability insurance in TX now

A. Impossible to answer your question. Each company would ask different questions and there is no standard "One size fits all" form that insurance companies use.

The questions they ask are to establish your risk factor so they can set an estimate of costs, based on what you have told them. Of course once you accept the policy and they run the information, it's subject to change if you have left something out.

The best way to find the rates you would be paying is to find an independent agent, one not tied to any one company, give him your needs and information, and let him search his data base for the best company for your specific needs. Good luck with the quest.

Original Question

Will getting a ticket in them mail from a Red Light Camera in Pennsylvania effect your car insurance?

Q. At a intersection I was in a turning left lane. We must of been sitting there for atleast 8 mins and it went through atleast 3 light changes and did not let us go. The person infront of me and myself went to take the left turn.

My question is will it effect my car insurance? From what I understand its a point system and does not effect your car insurance but I just wanted to make sure.

A. No it will affect your insurance. The effect will be a higher bill.

Original Question

How much does a male aged 17 pay for car insurance?

Q. Well I'm 17 years old and I'm currently taking driving lessons and hopping to do my driving test really soon. So the reason i asked this question is to just find out how much you pay for your car insurance.

P.S If things do go well and I pass my driving test, I am planning to get a 05 Reg Vauxhall Corsa 1.2 SXI. So it would help if someone owns a 1.2 car and they're 17 years of age to answer this question.

Thanks!!

A. Your going to pay high rates no matter what car you drive.

Your an inexperienced driver and will be put into an AR (assigned risk) group. Though, most insurance companies will lower your rate each renewal year. Not by much, but you will see a difference.

=)


Been there, done that, with son.

Original Question

Powered by Yahoo! Answers

Question about paying different types of house bills Chicago IL?

Q. Ok so basically my girlfriend an I want to move into a studio apartment together in Chicago, IL. Rent with free heat comes to 500 a month. Now we will both together be making 1.1 grand to 1.8 grand while going to college. Question is without car insurance and about 80 to spend on gas a month, what other bills do I have and will I be able to cover it? We only eat about 100-150 whorth of food a month.

A. I don't know...what about electricity, water, medical expenses, incidentals, clothing, personal care products etc etc...Haveing no insurance is just stupid.

Original Question

How agent get commission in auto car insurance?

Q. i have assignment to do and i need your help please. my project about auto car insurance. my question is, what are steps that agent need to get commission? and how he get it.
thank you.

A. 1. Get licensed to sell insurance
2. Get appointed with an insurance company to sell their policies
3. Sell auto insurance policies
4. Wait two months, for the insurance company to mail you your commission check.

Original Question

Will getting a ticket in them mail from a Red Light Camera in Pennsylvania effect your car insurance?

Q. At a intersection I was in a turning left lane. We must of been sitting there for atleast 8 mins and it went through atleast 3 light changes and did not let us go. The person infront of me and myself went to take the left turn.

My question is will it effect my car insurance? From what I understand its a point system and does not effect your car insurance but I just wanted to make sure.

A. No it will affect your insurance. The effect will be a higher bill.

Original Question

How much does a male aged 17 pay for car insurance?

Q. Well I'm 17 years old and I'm currently taking driving lessons and hopping to do my driving test really soon. So the reason i asked this question is to just find out how much you pay for your car insurance.

P.S If things do go well and I pass my driving test, I am planning to get a 05 Reg Vauxhall Corsa 1.2 SXI. So it would help if someone owns a 1.2 car and they're 17 years of age to answer this question.

Thanks!!

A. Your going to pay high rates no matter what car you drive.

Your an inexperienced driver and will be put into an AR (assigned risk) group. Though, most insurance companies will lower your rate each renewal year. Not by much, but you will see a difference.

=)


Been there, done that, with son.

Original Question

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