Wednesday, May 26, 2010

Tricky questions about the DMV and car insurance

DMV
Q: What is the difference between Title and Registration?
A: Title confers ownership of the car, while registration allows you to operate the vehicle regardless of ownership. Usually the two processes are completed together by the dealer when you buy a car, but they can be done separately at any time. Read more here.

Q: How do you transfer license from other states?
A: The processes are usually detailed on that state DMV website, but basically until you have a real license in hand, starting a transfer process means starting everything over (you'll have to redo the eye test, knowledge test, road test, pay for another 8-hour pre-licensing course). This is true for both learner's permit and interim license.

Auto insurance
Q: How can I get great prices and coverage on car insurance?
A: Edmunds.com has a good article explaining everything in detail here.

Q: Can you get insurance on a car that is not registered/titled to you?
A; Yes. Title and registration do not mean much - it is the car insurance and the coverage that really matter. If you need to drive someone else's car and would like to buy insurance to cover you and your friend's car in case you wreck it, you can certainly do so. Read more here.

Q: Do I get car insurance based on the state of registration, the state where I live, or the state where I drive the car?
A: Car insurance is based on the state in which you drive the car, basically where the garage is. Every state has different requirements and you can check the above link from Edmunds.com to see what they are.

Q: If I'm a new driver, can I get a cheaper insurance if I add another experienced driver on the policy?
A: I tried this while soliciting online quotes and discovered that the more drivers you add to the car, the higher the premium, regardless of their driving records, impeccable or not.

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