Get Car Insurance

Get Car Insurance - It’s the Law

Before you get out of high school, you’ll probably
be behind the wheel of a car. At some point you’ll
ask, “Why do I need Car Insurance?” The easiest
answer is that it’s the LAW!

If you’re headed out on your own...

Get off mom and dad’s policy and get your own
policy. Fraud is committed when someone lies to
the insurance company about who owns the car,
who’s driving the car, and/or where it’s kept. If
you’re looking to move out, update your auto
policy.

If you’re headed to the military...

Some companies offer great discounts to military
personnel. There are some companies that cater
to the military. Shop around for the best deal.
Remember, the company needs to know where you
park the car. If you’re shipping out, tell the
insurance company where you will store your car
or motorcycle.

If you’re headed to college...

You can probably stay on your parent’s policy, but
your insurance company needs to know that your
car is not at home. If you get above average grades,
see if your insurance company offers a “good
student” discount. You may qualify!

What your policy covers

These are generalized statements. You will need
to read your policy for specific items and events
covered.

• Auto liability insurance pays for someone
else’s property or injuries if you are liable, or
at fault, in an accident. The policy will list this
as bodily injury and property damage.

• Your insurance pays if the other person does
not have any insurance. Your policy is required
to have uninsured motorist coverage for your
injuries. UM does not pay for your car.

• Comprehensive pays you if your car is stolen
or damaged by basic acts of nature.

• If you’re at fault, or the other guy doesn’t
have insurance; Collision pays to fix your car.

What you should know

Every driver in Missouri is required to be
“financially responsible”. Being financially
responsible means that you can pay for the damage
for which you are legally liable.

The minimum liability amounts in an auto
insurance policy are $25,000 for bodily injury per
person, $50,000 for bodily injury per accident and
$10,000 for property damage. This is typically
referred to as 25/50/10. Before you get into an
accident, you may wish to consider more than
the required state minimum. Ask yourself this:
“How many cars on the road today cost more than
$10,000?”

Giving others your keys

Did you know that if your friend wrecks your car,
the accident is on you? You are responsible for
who drives your car. So, even if you ask your
friend if they have insurance before they drive, it
may not matter. As far as your insurance company
is concerned, the accident will go on your
insurance record and you will pay the surcharge.
Be careful about who you give the keys to.
Grace Period
If you do not pay your premium before the due
date, you have no insurance.

High-Risk Policies

Current Missouri law does not prevent an insurer
from putting you into a high-risk policy if you
have not been insured in the last 30 days. Paying
your premiums on time and not letting your
policy lapse can avoid this situation.

Insurable Interest

A big part of how a company sets the price of
your insurance is generally based on where the
car is located, who drives it, and how it’s driven.
The titled owner of a vehicle is the only person
who can take out insurance on a vehicle. This is
called “insurable interest”. For example: If your
Uncle Bob loans you his pickup truck, you will
want to make sure you’re covered. But, since your
name is not on the title, you cannot get insurance
in your name. Uncle Bob will have to do that.

Deductible

A deductible is a clause in your insurance policy
that states you will pay a specific amount of a
claim before the company pays. The higher your
deductible, the lower your premium.

Finance Companies

If under the terms of your auto loan, you agree to
provide comprehensive and collision insurance
and you fail to do so, the bank may take out a
policy to protect its interest in your car. These
policies typically do not offer liability insurance
coverage to meet the state’s mandatory liability
laws and typically only cover the amount of the
loan, not what the car is worth.

Claims

If you’re in an accident and your car is “totaled”
most insurance companies pay the Actual Cash
Value (ACV) of your vehicle. A company will search
several different ways to find the “actual cash
value” of your vehicle. Some of these ways may
include: NADA, Kelly Blue Book, CCC etc.
Companies are not required by state law to use a
specific source to establish the ACV.

Comparative Fault

Missouri uses the rules of pure comparative fault.
Pure comparative fault allows your damages to
be reduced by the percentage you are at fault in a
loss. Insurers are allowed to investigate an
accident and make a decision as to the percentage
of fault of all parties involved. They will make
voluntary offers based on this opinion. If you
disagree with their evaluation, you can consult an
attorney or turn over the matter to your own
insurance company to handle under your collision
coverage.

50/50 Comparative Fault

Many parking lot accidents end up being half your
fault and half the other person’s fault. Parking
lots are considered private property where the
property owner, not the state, places the lines and
road signs. Some of your general road laws do
not apply, but common sense does. If you’re in a
parking lot accident, get the names of witnesses,
take photos, and check with the business to see
if they have a parking lot security tape.