How does automobile insurance work? Do I pay for the car or the driver or both?

Question

Details: I drive a (don't laugh its paid for) 1997 Pontiac Sunfire for which I carry only liability. It only costs me $42.00/month because I am old as Moses and been driving almost as long. Clean driving record. Now I need to place my two daughters, Snow White and Rose Red, on the insurance. Snow is 19 and Rose is 18. How much will my insurance go up if I continue to carry only liability? Also, I really need a second car, as Snow is working now and sharing the car is really less than convenient. I am looking for another (don't laugh its paid for) type car, as they seem to me the most economical option and I can insure them more cheaply. (Who knows, when the girls move on and meet Prince Charming maybe I'll have a midlife crisis and buy a big fancy car with big fancy payments and insurance requirements...but thats for another story. So my question is, am I paying the liability for my car, for myself, for the youngest insured driver? Thanks all those who have already answered.

Answer 1

Not really sure about your question. Insurance follows the vehicle, not the driver. Collision covers damage on your car due to 'collision', with another car or object like trees, mailboxes, houses, etc. Liability is coverage that pays for all the things you HIT. Comprehensive covers damages resulting from things like hail, flood, theft, smacking a deer or polar bear, fire, etc. You, as the driver, are 'rated' upon age, credit report, driving history, etc.

Answer 2

Like the previous answer makes clear, you pay for both the type of car and your personal traits and driving habits (for example, will you drive 1000 miles annually or 10000 miles? Past accidents? Age? Tickets?).

In addition, you are responsible for the occupants in your car and the occupants in another car if you hit them and you are at fault. One more important item: If you let someone drive your car and that person has an accident and is at fault, your insurer (and you, if the costs of injuries exceed your insurance) will be responsible for damages to anyone else.

Answer 3

You pay for both. My husband has a company car, and NEVER drives our personal auto. Regardless, since we're married, we must pay for 2 drivers.

Read your renewals. Many insurance agencies/companies don't update your records. They will leave people on your policy and extra year or two and you end up paying too much in premium.

If you have homeowners or renters insurance on it as well, you can get a discount.

I think most insurance companies go back 5 yrs. on the record now.

Answer 4

You pay based on: the car, how many miles you drive annually, the number of drivers in your household, their (and your) driving records, where you live, your credit record, how long you've had insurance with the company, the company itself (some are cheaper), the kids grades and any driver training any of you has had - including you!

Answer 5

there are different levels with the lowest level having a high deductible that only covers injury to urself and collision to a car u hit .... most carl dealers and banks will force u to carry a higher level of insurance if u finance a car to cover damage to ur actual vehical as well as all injury to any persons involved ... the rates are much higher of course ... and the deductible is usually lower to for full coverage insurance...

Answer 6

you pay for the car and your rate is based on that and the driver's age, experience driving, past accidents some offer discounts for students, good drivers and multiple policies

Answer 7

you pay for the car and the care of the occupants in an accident

Answer 8

Both