Reader’s Question:

I’ve been labeled a drunk driver! I got a DUI in California, but now I’m back home in Nebraska. Will the DUI affect my auto insurance premium here even when the offense was in California?

Thomas

Lincoln, NE

Your DUI record in California will be sent to Nebraska and will appear in your driving history. You see, the states of California and Nebraska are signatories of this agreement called Driver License Compact. I know, the name sounds terribly serious and sober, which, by the way, is what YOU should be, being a drunk driver and all.

What it is–is an agreement among most of the states to share among each other the road violations committed by their respective residents. You, for example, got a DUI in California, and since Nebraska and California are both members of DLC, your DUI will be sent to Nebraska. They will exchange information, points will be added to your Nebraskan driving record and your DUI record will be available to your auto insurance company.

As to the effect of this DUI to your auto insurance premium, it won’t be much if it’s your first offense. Most auto insurance companies tend to be unaffected by first time DUI offenders. Of course, you’ll have to check with your auto insurance company to be really sure on this. Sometimes the gravity of the DUI offense can have varying effects on your insurance premium. But remember, the DUI you got in California will definitely appear in your Nebraska driving record.

Tags: auto insurance premium, drunk driving insurance

Reader’s Question:

Hi, my son is going to get his license next month here in Nebraska. He will be getting his own auto insurance policy as he is buying a second-hand car, too. What should I know? Are there any tips you can give as I heard several horror stories about teens and their high auto insurance premiums?

Kevin

Omaha, NE

Hello, Kevin. I understand what you’re going through. My son used to be a part of my policy, and it did raise my car insurance premium a bit, and now he’s getting his own auto insurance coverage. They all have to grow up and be independent. The feeling of independence brought about by being behind the wheel of your very own car is, I still remember, really something. Our role, as mature and experienced drivers, is to, at least, guide them in the ways of being a responsible and safe motorist in Nebraska.

Now, teenage drivers will always get higher auto insurance premium rates, that’s a given. Statistics have pegged the teenage years as a magnet for accidents. Teenagers are not expert drivers, they’re rookies. They lack driving experience and because of that, they are considered high-risk drivers. It would take at least three years of driving before they are given regular auto insurance rates. Also, male drivers are quoted higher premium rates than female drivers. So, within their age category, female drivers get lower auto premium rates.

Also, remind your kid that any accident, ticket or traffic infraction he gets will have a bigger effect on his auto insurance premium. Us adults, when we get into similar situations, our auto insurance premium is affected. Imagine being a member of the teenage bracket. Imagine the effect of a traffic violation to the insurance premium.

When it’s time to pick their car, we can, at least, tell them that certain car types fetch higher auto insurance premium. A regular sedan will do the job and the auto insurance premium won’t be so high. A sports vehicle or sports utility vehicle, on the other hand, will further raise the auto insurance premium. A teenage driver behind the wheel of a sports utility vehicle is not a good idea insurance premium-wise.

Tags: auto insurance premium, teen, teen insurance

Reader’s Question:

Do I need to have automotive insurance even if my car is just leased? In case I need to, what’s the best insurance company here in Lincoln, Nebraska?

Johnny

Lincoln, NE

Hi, you may have to check with your leasing agent about what type of auto insurance you need to get (if they would require any). Typically, a leasing agent would require you to get a comprehensive auto insurance coverage. In essence, the financing institution does this to protect their interest in your loan. This is because when you get into an accident, the financial institution is left with the portion of your loan which is unpaid. That’s the reason why they prefer that you have liability limits that are beyond what the minimum coverage your area (which in this case is Lincoln, Nebraska) would require.

When you buy auto insurance for your leased car, you should remember that most insurance companies pay only the actual cash value — that is the market value including the age, mileage, and wear-and-tear of the car — rather than its replacement cost. Let’s say you have an old model BMW and you unintentionally get it crashed, you cannot expect the insurance company to replace your car with a brand new model BMW. And as you know, whatever’s in excess of your insurance company’s liability, you are obliged to pay for it.

So don’t be sparing with your car’s auto insurance coverage. Generally, higher insurance coverage don’t cost much more than those with less coverage, anyway. Besides, you are doing this because you want to make sure that you’re safe in case you get into an accident, right? Insure yourself to the right limit and you’ll see how it will eventually pay off.

Have a great day!

Tags: auto insurance, car insurance, Car Insurance Company