Reader’s Question:

I’m 18 years old and will be staying with my friend for the summer to work in Austin Texas. I will be using their vehicle. If I get involved in an accident will my insurance company cover it?

Lex

Austin, TX

People are usually confused about who is covered under a standard car insurance policy. Typically, there are only one or two names listed in the name of the insured of a car insurance policy, however that doesn’t mean that those are the only individuals who are covered under the car insurance policy. Generally, car insurance coverage actually follows the car, not the driver. So if your vehicle is involved in an accident in Austin Texas, the vehicle typically receives the full coverage provided by the car insurance policy, regardless of who is operating it.

Your insurance provider may require that certain conditions be met in order for other motorists to be covered under insurance policy. For instance, anyone who drives your vehicle must typically be a licensed motorist. In addition to that, most insurance providers require that anyone driving your vehicle should have your permission. Since these conditions may differ, it is necessary to check your insurance policy carefully and make certain that you understand any conditions that might apply before you permit someone to drive your car.

Tags: car, car insurance

Reader’s Question:

What kind of car insurance coverage should an older type of car carry? Can a classic or modified car be insured? Who will offer such kind of insurance coverage in Texas?

Dominic

Corpus Christi, TX

Under the Texas law it mandates a specific minimum automobile liability insurance coverage for all automobiles registered in the state. Depending on the terms of the individual policy, liability insurance generally covers the cost of property damage, including the cost of repair or replacement for any other property damaged as the result of an accident. Liability insurance also pays medical bills and lost wages as a result of bodily injuries obtained in an accident.

Most people with older type of cars do not purchase collision or comprehensive coverages. With an older car, the cost of repairing the physical damages to the car may be greater than the value of the car itself. In that case, your car insurance company may declare your car “total” and give you a check for the car’s market value instead.

As for your other inquiry, yes, you can insure a modified car but because your car is a specialist car, not all auto insurance companies might be willing to provide and accept the coverage for it since it requires high price for replacement of car parts and also skilled labor if the car was involved in an accident. Thus, you have to take a special car insurance company that is designed especially for modified and classic cars and provides coverage for such cars.

Reader’s Question:

Most of the time I rent a car while on vacation, do I always need to buy insurance when I rent a car? Is this not covered by my own policy?

Riley

Austin, TX

Great question, Riley. Thanks for asking. When renting a vehicle under the State of Texas contract, the daily rate includes both Loss/Damage Waiver (LDW), which covers all damage to the rental vehicle if it was rented under the state contract, and Liability coverage. If you rent a car from a non-contract rental car vendor, car insurance may or may not be included in the base rental rate. You must inquire at the time of your rental if the contract includes a car insurance coverage. If not, you must purchase the Loss/Damage Waiver (LDW) and Liability insurance.

If you have fully insured your own car, including collision and comprehensive coverage, and rent a vehicle for pleasure only, you do not need to buy extra insurance from the rental company. In fact, your basic rental fee by law will include liability coverage for damage or injury to others. However, different rules apply when you rent a car for business purposes, so check with your car insurance agent for details.