Do I need insurance if Im not going to own a car?

Question

I've relied on public transportation over the years to get around. Im 21 years old, just about to graduate college and Im terrified that Ill get a job offer at a place which is not train/bus friendly.

I never got a drivers license. I figured it'd be a good time to get started on that now, rather than months from now when I realize that I NEED a car.

I can go get a permit, wait 3 months and get a license. That's fine with me. My concern is insurance. Will I need insurance if I simply get the license? I honestly cant see myself owning a car anytime soon.. Maybe at most, id drive my parents car occasionally.

Whats the scoop? Also, I live in NJ. Excuse my ignorance on this subject, but its something I truly know nothing about.

Thanks!

Answer 1

No. You do not need insurance simply to get a drivers licence.

when you find a car that you're ready to buy, then you have to call an insurance company, or find them online (Geico, State Farm, bla bla) and actually do it online if you prefer.

It's a simple process.

Remember, if you FINANCE a car you'll need to have FULL COVERAGE. If you end up buying one in cash you do not need full coverage but be very choosy as to what you get covered.

Good luck!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1

Answer 2

I was an auto insurance adjuster for 10 years. I never saw a policy that didn't cover every licensed driver who had permissive use to drive the covered auto. Someone has to be excluded from a policy for it to not cover a loss.

If you're in college and intend to drive cars that are otherwise uninsured, get a name-non-owner policy. It covers you for any and every car you drive. Since I never handled a claim for this type of policy (they're very rare) I'm not sure if the coverage is primary or excess, but it really doesn't matter, you'll be covered one way or another. It would be less expensive to buy if it's excess, so that would actually be better for you.

If you get this policy (and it is as cheap as I think it is), then if you do have to buy a car, get a trust first. Then register the car to the trust and then you'll still be driving a car that you don't own.
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Answer 3

NJ is the most expensive state for insurance. And they also tend to do things there own way. If you do not have a license, you do not have to have insurance. NJ to my knowledge has to approve all insurance policies, so that could make things interesting. I would recommend what is called a Named Non-Owner Insurance Policy if it is possible. In your case it will not be to provide coverage per se, but more to establish a payment history and previous insurance. Many insurance companies like to see previous insurance in place in order to get the best rates. As you do not have a car, you also probably do not have any credit. Insurance companies do look at your credit history and use that score to determine your rates. At least a named non-owner policy will give you a payment history and previous insurance, both of those will help in getting you the best rates possible.

Answer 4

You don't have to have insurance just because you have a driver's license. If your parents insurance will cover you, then you don't have an issue. I would think that your age,being male, will make your parents rates go up pretty high, young males pay more for insurance because statistics have shown that young males are more likely to cause an accident, speed, or otherwise drive more recklessly than the average driver.

Answer 5

Insurance is for the vehicle, not the driver. You do not go out and get drivers insurance when you don't own a car, there is no such thing. Just worry on getting your license without having a car to get one.

Answer 6

Insurance covers a car, not a license. If you don't have a car, you won't need insurance.