The minimum required

Florida law requires drivers to carry a minimum of:

• $10,000 in personal injury protection (PIP)
• $10,000 in property damage liability (PDL)

PIP is also called Florida No-Fault Insurance. PIP insurance will cover your medical expenses as well as lost wages and some other damages if you're in an accident whether or not it's your fault up to the limits of your policy.

PIP will cover your child, members of your household and any passengers in your car who don't carry PIP. Passengers who carry PIP will be covered under their own insurance. PIP also protects you if you're riding in someone else's car or a bicycle or are a pedestrian.

PDL coverage pays for damages to other people's property that you or members of your family cause and are liable for when involved in a crash.

Bodily injury liability recommended

Florida does not require you carry Bodily Injury Liability (BIL). However, BIL, which pays for serious and permanent injury or death to others should you cause a crash involving your automobile. If you have BIL insurance, your insurance company will not only pay for injuries up to the limits of your policy but it also will provide legal representation should you get sued. That's why, while not required, having bodily injury liability is highly recommended.

Have proof of insurance with you at all times

Your insurance company will issue you a Florida Insurance I.D. card. You must have this card available to show any law enforcement officer who asks. You could be ticketed for not having proof of insurance.

If you don't carry insurance on your vehicles and you are stopped by police for any reason or are involved in an automobile accident, you could lose your driver's license. Your license could be suspended for up to three years or until you prove you have purchased coverage - whichever comes first. You will have to pay a reinstatement fee of $150 for the first offense. You will pay $250 for a second offense within three years and $500 for a third.

Your insurance must be issued by an insurance company that is licensed to sell in the Sunshine State. If you move to Florida from another state, ask your insurance agent if your company writes in Florida (most do) and to transfer your insurance to Florida. You can look up insurance companies licensed to do business in

Florida at the company directory on the Florida Office of Insurance Regulation.

Requirements apply to snowbirds

If you're a snowbird and only live in Florida during the winter months, you still must maintain automobile insurance. The state requires any vehicle holding a valid Florida license plate and registration be covered by a Florida insurance policy while it is registered. If you leave your car in Florida while you head north, it still must be insured while you are away.

Over 55 can qualify for discount

If you have a Florida driver's License and you are 55 or older, you are eligible to complete a six-hour motor vehicle accident prevention course. Once you complete the course approved by the Florida Department of Highway Safety and Motor Vehicles, you will be eligible to receive a discount on your automobile insurance. The discount is good for three years. Then you can take a refresher course to renew.

You can take the course online at your leisure.

Florida's graduated driving privileges

Florida is one of many states that has graduated drivers' licensing. You can apply for a learner's license after you turn 15. You must complete a Traffic Law and Substance Abuse Course, pass written, hearing and vision tests, and have a signed parental consent form. With your permit, you can drive during daylight hours as long as a licensed driver who is at least 21 is in the front passenger seat.

When you're 16, you can earn an intermediate license and drive between the hours of 6 a.m. and 11 p.m. When you're 17, you can drive between 5 a.m. and 1 a.m. When you turn 18, all restrictions are removed.

Driving in Florida

As an insured, licensed driver in Florida, there are few laws and regulations that you should keep in my mind so that you remain legal on the road. Certainly there are more than those that we've outlined here, but these are the top 6.

Renew Your Florida License or Plates

Online registration and renewals are available based on eligibility. Check renewal options at the Florida Department of Highway Safety and Motor Vehicles.

Clean Emissions

Though Florida eliminated its emissions testing for motor vehicles back in July 2000, the state still does its best to encourage clean emissions. Drivers who own an Inherently Low Emission Vehicle or a hybrid vehicle are permitted to drive in High Occupancy Vehicle lanes at any time - even if the driver is the sole passenger in the car.

Using Laser and Radar Detectors

Under federal law, the use or possession of radar and laser detectors is illegal in all commercial vehicles over 10,000 pounds and on military bases. For all other purposes, radar and laser detectors are legal in Florida.

Radar Detector Law & Legalities

No one wants to get a speeding ticket and then pay more in car insurance. But are "radar busters" legal? The answer in Florida depends on the type of technology you use and how you use it.

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Recent estimates suggest that over 10 percent of all drivers employ some sort of "radar-busting" technology on our nation's highways. This isn't that surprising, considering the advances in radar-detecting technology since the 70s. Drivers today can choose from a variety of radar detectors, laser detectors, scanners, jammers and stealth coatings designed to elude law enforcement officials. But before you decide to use one of these devices, you should be aware of the laws pertaining to them.

Radar & Laser Jammers
Under federal law it is illegal to jam or attempt to jam police radar signals. Many states also criminalize the mere possession of a radar jammer, so it is best to avoid such products altogether.

Police Scanners
The use of police scanners in Florida is illegal if installed or transported in vehicles unless you are either a licensed alarm system contractor, member of Press on assignment, licensed amateur radio operator or citizen with written permission from Chief of Police or Sheriff or Chief of Fire Department of your community.

Stealth Coatings
to date, neither Florida nor any other state has banned the use of stealth coatings to impair the ability of police LIDAR laser guns ("Light Detection and Ranging") to obtain an accurate speed reading of a vehicle. Stealth coatings first gained notoriety due to their defense applications (such as with the Stealth Bomber). Their efficacy on the roadways, however, remains to be seen although some testers claim that stealth coatings can reduce laser gun sensitivity by up to 50 percent (see http://www.radarbusters.com/2003lasercoatingsarticle.cfm ).

Radar & LIDAR Detectors
Under federal law, the use of radar and LIDAR detectors is illegal in all commercial vehicles over 10,000 pounds (see http://www.ncsl.org/programs/transportation/radar.htm). For all other purposes, radar and LIDAR detectors are legal in Florida.

In light of the obvious conflict between speeding laws and radar detector use, law enforcement officials, safety advocates, and insurance companies continue to lobby to legislators nationwide to ban the use of radar and laser detectors altogether. Thus far, they have only been successful in banning radar detector use in Virginia, Washington D.C., and on U.S. military bases.

Some speculate that one of the reasons that legislatures have been loathe to ban consumer use of radar detectors is that such bans could expose the inaccuracy of radar and laser-based speed detection systems. Independent studies have shown that radar and laser guns are susceptible to technical and operator error, leading some radar detection advocates to claim that over 25 percent of all radar-based speeding tickets are generated in error (see http://www.radarbusters.com/mistakesarticle.cfm). Some of the more common reasons for errors include:

• Radio Frequency Interference (RFI) from sources such as radios, garage door openers, and police radar
• Cosine errors generated by an inappropriate angle of the gun to the target
• Mechanical errors caused by guns overheating or being out of alignment

Regardless of the accuracy of speed detection systems or the legality of radar detectors, one fact remains crystal clear in Florida-speeding is against the law. Accordingly, the best advice is for Florida drivers to rely on their common sense, rather than technology, when assessing the proper speed for the prevailing road conditions. For more information on safe driving in Florida, please visit http://www.dmv.org/fl-florida/defensive-driving.php. If you're interested in learning more about radar detectors, please visit the RadarBusters.com Buyer's Guide.

Child Restraint Law, Protecting Precious Cargo

Children ages birth to 5 years old must be in a federally approved child passenger restraint system to help protect them while driving. Children 3 years old and under the device must be a separate carrier or a vehicle manufacturer's integrated child seat. A separate carrier, integrated child seat or seat belt may be used for 4- and 5-year-olds. Drivers who do not have children properly restrained will be fined, get 3 points added to his license and may have to participate in a child restraint safety program.

Children are undoubtedly the most precious cargo that parents carry in their automobiles. Nevertheless, improper usage of child restraint systems needlessly injures thousands of children on Florida's roads each year. While some of these injuries are caused by clear violations of Florida's car seat law, advocates for broader car seat laws claim that many of the injuries occur because Florida's car seat law doesn't go far enough.

According to the Florida Department of Transportation's car seat laws:

• All children 5 years of age or younger must be properly restrained no matter where they are sitting in the vehicle
• Children through age 3 must be secured in a separate carrier or a vehicle manufacturer's integrated child safety seat
• For children aged 4 through 5 years, a separate carrier, an integrated child safety seat, or a safety belt may be used

Thus, under the Florida car seat law, children over 3 years old may ride in a vehicle using a standard adult safety belt. The problem with this according to advocates is that most children under 80 pounds are too small for an adult seat belt. Adult seat belts can actually be dangerous to children because the belt cuts directly across their neck instead of snug across the center of their shoulder. This can lead to serious injury or even death in the event of an accident.

So what's a safety-conscious parent to do? Car seat safety advocates recommend that Floridians follow one of the following guidelines:

• The National Highway Traffic Safety Administration (NHTSA) recommends that children over 40 pounds use a belt-positioning booster seat until they are 8 years old, unless they are 4'9" or taller
• The American Academy of Pediatricians goes a bit further and advocates for booster seat use until the child reaches 4'9" in height and is between 8 and 12 years of age.

If your child resists using a belt-positioning booster, experts recommend the following:

• Avoid referring to the seat as a "car seat" or "baby seat." Instead, use the terms "booster seat," "safety seat," or "big boy/girl seat."
• If your car's back seat has headrests, consider using a backless booster which looks less like a "real" car seat to most children
• Discuss car safety with your children and the reasons a booster keeps them safe
• Emphasize the benefits of a booster seat, such as an improved view out the window, cup holders, and arm rests

In the end, the Florida car seat law should be viewed as a starting point for any child's traveling safety. Parents should take into consideration their child's unique height, weight, and other attributes that may impact their use of standard, adult seat belts. And if you have any doubts about what's the right thing to do, simply err on the side of caution. After all, you're protecting your most precious cargo

Seat Belt Law

Florida requires safety belt use. Drivers and front seat passengers must wear their seat belts. These people are exempt from the law:

1. Children subject to the child safety restraint law
2. Letter carriers
3. People with an affidavit from a physician stating their medical conditions that prevents seat belt use
4. An employee of a solid waste or recyclable collection service.
5. Those people riding in the living quarters of a recreational vehicle.
6. Driver and passengers in vehicles not required to be equipped with safety belts under federal law.

Alcohol Laws & Penalties

Under Florida law, it is illegal to operate a vehicle with a blood alcohol concentration (BAC) level of .08 or above. Consumption of alcohol is not allowed in vehicles, either parked or moving. Open containers of alcohol, including those that have been closed again, are prohibited in all vehicles.

Penalties for driving under the influence of alcohol or drugs, depending on whether it's a first or repeated offense, range from a mandatory fine of no less than $500, probation, mandatory community service, possible imprisonment, vehicle impoundment and 180-day license revocation, to an up to 5-year jail sentence, a mandatory fine of $2,000 or more, community service and permanent license revocation. More than three convictions in a 10-year period or cause serious bodily injury and you are looking at a third degree felony: up to $5,000 fine, jail time, no license and more.

Many auto insurance companies in Florida will raise your rates or cancel or non-renew your insurance if you're convicted of an operating a vehicle under the influence. Conviction for excessive violations, license suspension, or major violations also carries the risk of the Florida Department of Transportation requiring you to submit an SR-22 filing for three to five years, to prove that you're maintaining car insurance.

Florida Auto Insurance Rules and Regulations

If you are a driver or are about to become a driver who lives in Florida you should know that to legally drive in the state, you must have auto insurance. It's mandatory, and if you fail to maintain insurance coverage on your car, you could find yourself in trouble with both law enforcement and the Florida Department of Highway Safety and Motor.

The Minimum

Florida law requires drivers to purchase insurance $10,000 personal injury protection (PIP) and $10,000 property damage liability (PDL). That said, carrying the minimum isn't always the best - or cheapest - solution. Learn more about how much coverage you should buy before you shop so that you're protecting things like your home, your finances and your family.

PIP insurance covers medical expenses, as well as lost wages and other damages, though not in all cases. PIP kicks in no matter who is at fault for an accident. PDL covers another driver's vehicle or a person's property when you're at fault for an accident.

Though Bodily Injury Liability (BIL) is not mandated by the state of Florida, it is strongly recommended. And if you have shown financial irresponsibility following an accident, you may be required to carry it. BIL covers the cost for death or serious and permanent injury to others when you are at fault for an accident.

For example, if you own a home, carrying the minimum auto insurance coverage in Florida may not protect you if you cause an accident and your insurance doesn't cover all of the damages. If the other driver decides to sue to recoup those damages, it could mean you could lose your house.

Optional Car Insurance Coverage

Though you must carry minimum coverage, you are not restricted to minimum coverage. There are several options you can take advantage of to protect, you, your passengers, other drivers and, in many instances, your financial well being and other property. Here's a rundown:

• Optional: Medical Payments, Uninsured Motorist/Underinsured Motorist, Comprehensive, Collision.
• Additional: Funeral Benefit, Gap Coverage, Towing and Labor, Roadside Assistance, and Rental Reimbursement, Income Loss, Accidental Death

No Car Insurance? No Driving Privileges

If the Florida Department of Highway Safety and Motor Vehicles determines that you drove without car insurance, it can suspend your driving privileges, including tags and registration, for up to three years or until proof of Florida insurance is provided, whichever is first.

Once you have auto insurance and have served your suspension, it will cost you restoration fees to get your driving privileges back. That will set you back at least $150 and could go as high as $500 with subsequent violations.

You Can’t Take it with You

If you are moving to Florida from another state, you cannot keep your current auto insurance policy. You must acquire at least the minimum allowable coverage by law from an agent licensed to sell or insurance company licensed to issue policies in Florida.

Snowbirds who live in Florida for a few months out of the year and keep a car in storage while they're away should note that if the car holds a valid Florida tag and registration it must its auto insurance coverage must be current. But here's the loophole. You can surrender your tag and registration for the time that you're away so that you do not have to maintain your policy. Reregister and shop for a new policy when you return.

Using Your Credit History to Determine Rates

Auto insurance companies in Florida are allowed to use your credit history when setting rates and determining your payment schedule (monthly, quarterly, in full). They may also use it to help create a personal "insurance risk score." However, they may not use credit as the sole factor that determines the price of a policy, whether the policy is issued, or any other negative action. You policy will include specific information about how you can learn about the effect of credit on your rate, if any.

Florida Auto Insurance: Mandatory Auto Insurance Coverage

Florida Bodily Injury & Property Damage Limits:

Bodily injury limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for bodily injury or death caused by an insured person in an auto accident.

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Property damage limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for damage in an auto accident to the property of other people (e.g. light poles, fences, another vehicle, etc.).

Bodily Injury & Property Damage coverage:

$10,000 person/$20,000 accident/$10,000 property

$25,000 person/$50,000 accident/$25,000 property

$50,000 person/$100,000 accident/$50,000 property

$100,000 person/$300,000 accident/$50,000 property

$100,000 person/$300,000 accident/$100,000 property

In Florida a driver must have a minimum coverage of $10,000 for bodily injury to one person, $20,000 for bodily injury sustained by two or more persons in a single accident, and $10,000 for property damage that results from one accident. To adequately protect yourself, you may want to purchase much more than the minimum amount of coverage required for Florida.

Common Exclusions: Bodily injury and property damage coverage apply to injury and damage from normal use of the insured vehicle. Coverage is limited by your policy and there may be some circumstances in which coverage does not apply. For example, in some policies coverage does not apply to:

1. Bodily injury or property damage arising out of the use of your vehicle while transporting people or property for a fee.
2. Injury or damage caused by an intentional act.
3. Injury or damage as a result of operating a vehicle owned by a person covered by your policy, where the vehicle is not listed on your policy.
4. Injury or death of you or a family member.
5. Property owned by, rented by or in the control of an insured person.

Personal Injury Protection (PIP)-$10,000 coverage:

PIP, also referred to as No-fault Coverage, is a legal requirement in Florida. Regardless of who is at fault, PIP covers bodily injury to covered persons caused by an accident involving an insured private passenger motor vehicle, up to your policy limits. PIP also covers bodily injury resulting from an accident involving a motor vehicle to:

1. You while in another person's vehicle.
2. Your child who lives in the same household if that child suffers an injury while riding on a school bus.
3. You as a pedestrian or bicyclist.
4. Residents of your home.
5. Certain passengers who do not have PIP.
6. Certain licensed drivers who drive your vehicle with your permission.

By Florida law, a minimum of $10,000 of PIP coverage is required and pays:

1. Medical expenses - Up to 80% of reasonable medical expenses.
2. Lost Wages - Up to 60% of lost wages and all reasonable expenses for replacement services, such as childcare, housekeeping or yard work.
3. Death Benefits - $5,000

Higher limits may be purchased through some carriers.

Extended Personal Injury Protection: In return for additional premium, you may increase coverage for reasonable medical expenses to 100%. You may also increase coverage for lost wages to 80%, up to the limits of the policy.

Wage Loss Exclusion: This option allows you to exclude benefits received for loss of gross income and loss of earning capacity from PIP coverage. This usually results in a reduction to your premium.

Military Benefits Coordination: Some carriers offer this option, which allows you to utilize military benefits under the federal Medicare program to pay for medical expenses resulting from an auto accident. Your PIP coverage would pay only for the expenses not covered by your military benefits. This may reduce your premium.

Deductibles: You may select a deductible of $0, $250, $500, $1,000.

Named Insured: The first person in whose name the insurance policy is issued to.

Resident Relative: Person related to you who is a resident of your household.

Please Note: This coverage definition is intended only as a guideline. All terms and coverage is defined solely by your policy.

Department of Insurance - Looking Out for You

When shopping for insurance in Florida, residents can rest easy knowing that the Florida Department of Financial Services (DFS) is looking out for their best interests. Responsible for the regulation of Florida's insurance industry, the DFS is akin to a department of insurance and oversees all types of insurance policies including:

• Auto
• Health
• Home
• Life
• Long-term care
• Worker's compensation

The principal responsibility of the DFS is to protect Florida consumers. The DFS does this by:

• Licensing insurers and insurance companies to do business in Florida
• Regulating insurance contracts and rates
• Protecting against insurance fraud
• Ensuring that insurance companies comply with Florida law
• Ensuring that insurance companies abide by their own policy language
• Processing Florida insurance consumer complaints
• Monitoring and reporting annual insurance complaint rates
• Providing Florida residents with comprehensive insurance guides

Licensing Insurers
The DFS manages the licensing process for all insurance companies, agents, adjusters, and groups in the state. Licensing procedures ensure not only that, insurance companies are financially secure but also that individual agents are well-versed in Florida state insurance laws through pre-licensure and continuing education coursework. The DFS also reviews all insurance products to verify that they comply with the Florida Insurance Code's rules regarding insurance contracts and rates.

Through CDI, consumers can verify:

• Whether an insurance company is licensed in Florida
• Whether an insurance company is licensed to sell a specific line of insurance
• Whether an agent is licensed in Florida and a legitimate representative of the insurance company Whether an insurance company has a good record of handling policy complaints

Protecting Consumers.
Beyond licensing, the DFS works on a number of fronts to protect Florida insurance consumer interests. The agency actively seeks to help consumers resolve their insurance-related disputes by reviewing and investigating consumer complaints. The DFS also seeks to limit disputes by providing a searchable database of frequently asked questions to help consumers better determine their insurance needs. This database can be found on the DFS website.

In addition to managing consumer complaints, the DFS polices all other insurance activities in Florida. The DFS Chief Financial Officer works diligently with his division commissioners to protect consumers by prosecuting insurance fraud scams, revoking the insurance licenses of those who violate the Florida Insurance Code, and issuing cease & desist orders to stop sales of unlicensed insurance products. The DFS also publishes regulations to ensure the proper implementation of the Florida Insurance Code.

For more information regarding Florida insurance laws as well as complete information about the Florida Department of Financial Services, Florida's department of insurance, please visit the at DFS website. http://www.myfloridacfo.com/

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Drivers in crowded urban areas like Dallas, Houston and San Antonio pay huge premiums, because the frequency of car crashes is greater than in the suburbs. And, car thefts are highest in the Southwest, so an anti-theft or tracking device can help.

20% of the cars on the road in Texas are uninsured. So, the Texas Legislature created a motor vehicle insurance verification system, called TexasSure. It matches your vehicle identification number (VIN) to a database of Texas insurance policies. You must show an insurance ID card when you register your car or have an accident.

If you drive without insurance, you can be fined up to $350 for a first offense (plus court costs) and up to $1,000 (with a 2 year driver's license suspension) for repeat offenses.

We can help you find the right coverage when you get an instant quote on Texas car insurance from the nation's top companies. We partner with some of the most trusted names in the U.S. - and since they're all competing for your business - you save big.

Car Seat Laws

Children are undoubtedly the most precious cargo that any parent carries in their automobile. Nevertheless, improper usage of child restraint systems needlessly injures thousands of children on Texas's roads each year. Learn more about Texas's car seat law and see why it might not go far enough.

Don't put your child's safety in jeopardy by not knowing what the state laws are regarding child seats. You also want to be sure you are using child restraint systems properly or you risk the chance of your child getting injured should you have an accident.

• Children must be secured in an appropriate child passenger restraint system (safety or booster seat) until they are at least 5 years old or over 36 inches.

Thus, under the Texas car seat law, children over 5 years old or 36 inches may ride in a vehicle using a standard adult safety belt. The problem with this according to advocates is that most children under 80 pounds are too small for an adult seat belt. Even the Texas Department of Public Safety's website indicates that the Texas car seat law sets the minimum safety standard that should be followed (http://www.txdps.state.tx.us). This is because adult seat belts can actually be dangerous to children over 5 years old because the belt cuts directly across their neck instead of snug across the center of their shoulder. This can lead to serious injury or even death in the event of an accident.

So what's a safety-conscious parent to do? Car seat safety advocates recommend that Texans follow one of the following guidelines:

• The National Highway Safety Administration (NHSA) recommends that children over 40 pounds use a belt-positioning booster seat until they are 8 years old, unless they are 4'9" or taller.
• The American Academy of Pediatricians goes a bit further and advocates for booster seat use until the child reaches 4'9" in height and is between 8 and 12 years of age.

If your child resists using a belt-positioning booster, experts recommend the following:

• Avoid referring to the seat as a "car seat" or "baby seat." Instead, use the terms "booster seat", "safety seat" or "big boy/girl seat."
• If your car's back seat has headrests, consider using a backless booster which looks less like a "real" car seat to most children.
• Discuss car safety with your children and the reasons a booster keeps them safe.
• Play up the benefits of a booster such as an improved view out the window, cup holders, and arm rests.

In the end, the Texas car seat law should be viewed as a starting point for any child's traveling safety. Parents should take into consideration their child`s unique height, weight, and other attributes that may impact their use of standard, adult seat belts. And if you have any doubts about what's the right thing to do, simply err on the side of caution. After all, you're protecting your most precious cargo.

Cell Phone Law

Concerned with the impact of cell phone use on driving safety, Texas lawmakers have enacted cell phone laws. See how these laws might impact you.

Over the past decade, cell phones have evolved from luxury items to absolute necessities for most on-the-go Americans. Consumers now use cell phones not only for business and personal calls but also to text message, take pictures, and even listen to their favorite music. The omnipresent nature of cell phones is not, however, without a price as the National Traffic and Highway Safety Administration (NTHSA) estimates cell phone-related car accidents are on the rise with distracted drivers causing over 25% of all police-reported traffic accidents.

Concerned with the impact of cell phone use on driving safety, Texas lawmakers have enacted cell phone laws banning the following types of drivers from using cell phones while driving:

• Intermediate license holders
• Bus drivers when a passenger 17 years-old or younger is present

Despite rumors to the contrary, there is no state-wide ban on hand-held cell phone use in Texas nor are local jurisdictions authorized to regulate cell phone use. While Texas law may not limit hand-held cell phone use significantly, safety experts recommend that you follow these guidelines when using a cell phone in your car:

• Use a hands-free phone
• Keep your eyes on the road at all times
• Never dial while driving
• Avoid using your phone in bad weather or heavy traffic
• Avoid stressful conversations while driving
• Never look up phone numbers while driving

For the latest information on Texas cell phone laws as well as the cell phone laws of other states, please visit the Insurance Institute for Highway Safety or the Governors Highway Safety Association.

Mandatory Coverage

In Texas a driver must have a minimum coverage of $30,000 for bodily injury to one person, $60,000 for bodily injury sustained by two or more persons in a single accident, and $25,000 for property damage that results from one accident. Learn more about the minimum auto liability insurance limits in Texas.

Bodily injury limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for bodily injury or death caused by an insured person in an auto accident.

Compare car insurance quotes now.

Property damage limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for damage in an auto accident to the property of other people (e.g. light poles, fences, another vehicle, etc.).

Bodily Injury & Property Damage coverage:

$20,000 person/$40,000 accident/$15,000 property

$25,000 person/$50,000 accident/$25,000 property

$50,000 person/$100,000 accident/$50,000 property

$100,000 person/$300,000 accident/$50,000 property

$100,000 person/$300,000 accident/$100,000 property

$250,000 person/$500,000 accident/$100,000 property

In Texas a driver must have a minimum coverage of $30,000 for bodily injury to one person, $60,000 for bodily injury sustained by two or more persons in a single accident, and $25,000 for property damage that results from one accident. To adequately protect yourself, you may want to purchase much more than the minimum amount of coverage required for Texas.

Common Exclusions: Bodily injury and property damage coverage apply to injury and damage from normal use of the insured vehicle. Coverage is limited by your policy and there may be some circumstances in which coverage does not apply. For example, in some policies coverage does not apply to:

1. Bodily injury or property damage arising out of the use of your vehicle while transporting people or property for a fee.
2. Injury or damage caused by an intentional act.
3. Injury or damage as a result of operating a vehicle owned by a person covered by your policy, where the vehicle is not listed on your policy.
4. Injury or death of you or a family member.
5. Property owned by, rented by or in the control of an insured person.

Please Note: This coverage definition is intended only as a guideline. All terms and coverage is defined solely by your policy.

Texas Government Auto Insurance Resources:

• Texas Department of Insurance http://www.tdi.texas.gov/auto/index.html

Consumer alerts, regulations and news about all types of insurance.

• Texas Vehicle Registration http://www.txdmv.gov/vehicles/registration/register.htm

Information about vehicle registration and more.

• Texas Driver License Help    http://www.txdps.state.tx.us/driverlicense/

Information about driver registration and more.

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A lapse in insurance coverage may result in the suspension of your vehicle registration privilege for three months, unless the lapse of insurance was for a period of less than 31 days and the owner or registrant proves to the Department of Transportation (Penn DOT) that the vehicle was not operated during this short lapse in coverage.

If Penn DOT determines that you operated your vehicle without the required insurance, your driver’s license may be suspended for three months. Also, your car’s license plate, registration sticker and driver’s license must be surrendered to Penn DOT in order to serve the suspension. Restoration fees and proof of insurance must be submitted prior to having either registration or driving privileges returned.

If you are stopped for a moving violation and it is determined that you are operating your vehicle without insurance, you could face the following penalties and expenses:

• A minimum of $300 fine for driving uninsured
• A three-month suspension of your vehicle registration
• A three-month suspension of your driver’s license
• Restoration fees to restore your vehicle registration
• Restoration fees to restore your driver’s license
• Vehicle impoundment

In addition, your vehicle may not be driven by anyone while the registration is suspended.

Pennsylvania’s required coverage

When you purchase private passenger automobile insurance, there are certain coverage that are required and others that are optional. The required coverage IS:

Medical Benefits — this pays medical bills for you and others who are covered by your policy, regardless of fault. The minimum limit is $5,000 of coverage. Higher limits are available if you so choose.

Bodily Injury Liability — if you injure someone in a car accident, this coverage pays their medical and rehabilitation expenses and any damages for which you are found liable. The minimum limit is $15,000/$30,000. The $15,000 pays for injuries to one person, while the $30,000 represents the total available for one accident.

Property Damage Liability — if you damage someone’s property in an accident and you are at fault, this coverage pays for it. The minimum limit is $5,000 of coverage.

Some companies offer a single limit of $35,000 which meets the bodily injury liability and property damage liability minimum requirements.

Limited or Full Tort — you can choose to have full or limited tort coverage. Limited tort coverage offers you a savings on your premiums. You are still able to recover all out-of-pocket medical and other expenses; however, you are not able to recover certain damages - such as payments for pain and suffering - unless the injuries meet one of the exceptions to limited tort as defined in Act 6 of 1990, title 75, section 1705 (d). With full tort coverage selection, you retain unrestricted rights to bring suit against the negligent party.

Pennsylvania’s optional coverage

In addition, private passenger automobile insurance policies offer a variety of additional optional coverage that can be purchased. These include:

Uninsured Motorist (UM) — this coverage applies to you, your family and your passengers for bodily injury if you are hit by an at-fault uninsured motorist. This does not cover damage to property.

Underinsured Motorist (UIM) — this coverage applies to you, your family and your passengers for bodily injury if you are hit by an at-fault motorist who does not have enough insurance to cover your claim. This does not cover damage to property.

Stacking of UM or UIM — this coverage allows you to either multiply the amount of uninsured or underinsured motorist coverage by the number of vehicles on your policy or to receive uninsured or underinsured motorist coverage from more than one policy under which you are insured. It costs extra to stack uninsured or underinsured motorist coverage.

Funeral Benefit — this coverage pays, up to a certain dollar amount, money for funeral expenses if you or a family member dies as a result of an auto accident.

Income Loss — this coverage pays a portion of your lost wages when injuries sustained in an auto accident keep you from working.

Collision — this benefit pays to repair damage to your car as a result of an accident. Most banks or lenders require you to buy this coverage to receive a car loan.  Under Pennsylvania law, the insurance company applies a $500 deductible unless you request a lower amount. Generally speaking, the higher your deductible, the lower your premium.

Comprehensive — generally, this pays for theft or damage to your car from hazards including fire, flood, vandalism or striking an animal. Most banks or lenders require you to buy this coverage to receive a car loan. There are various levels of deductible that may be purchased.

Extraordinary Medical Benefits — this coverage pays for medical and rehabilitation expenses that exceed $100,000. It provides a maximum of $1 million of coverage.

Accidental death benefit — this is a benefit paid to the personal representative of an insured if the bodily injury from a motor vehicle accident results in death within 24 months of the date of the accident.

Rental reimbursement coverage — this pays for an individual’s expenses, up to the limit on their policy, to rent a vehicle if they have a covered comprehensive or collision loss.

Towing coverage — this reimburses an individual, up to the limit on their policy, for towing and labor costs for a covered disabled vehicle. This coverage is usually only available if comprehensive and collision is carried on the vehicle.

Gap coverage — this pays the difference between an insurance company’s payment for a totaled vehicle and the balance of a vehicle loan. This coverage is traditionally only available when an individual is purchasing a new vehicle.

How rates are determined

When you are ready to purchase insurance, the insurance company or producer (agent) will ask you a series of questions and, based on your answers, will decide whether or not they will accept you as a policyholder. This practice is known as underwriting. By law, insurance companies may not unfairly discriminate by using underwriting standards based on things such as race, religion, nationality or ethnic group, age, sex, family size, occupation, place of residence or marital status. Based on your answers and your circumstance, the appropriate rate to charge you for your premium will be determined.

Certain items will be taken into consideration when figuring your premium, such as the type and age of the vehicle, safety features, where the vehicle is garaged, the average number of miles driven in a year, the coverage and limits chosen for the policy and the driving history of the drivers, to name a few. Some companies do use credit information for underwriting, but are prohibited to use it at renewal time. By law, insurance companies are prohibited from unfairly discriminating between individuals of the same class and of the same hazard in the rates they charge, and may not charge different rates based on an applicant’s race, religion or national origin.

When you’re ready to apply

You need to know what coverage you want, what limits of liability you require and what deductibles you desire. Also, you need to have the following basic information available on all drivers in your household:

• All drivers’ names, ages, sex and marital status
• Driving record (accidents and moving violations)
• Annual mileage driven
• Full vehicle identification number
• Year of vehicle
• Cost of vehicle
• Special equipment, such as anti-theft devices, airbags, etc.

Things to keep in mind

Inquire about discounts (such as multiple policies with the same company, multiple vehicles, airbags, anti-theft device, etc.) and/or surcharges the company applies. Not all companies will offer the same type of plans or have the same underwriting rules (eligibility/acceptability guidelines). Therefore, it is critical to ask for this information.

Make sure you know the length of the policy term. Policies can be six months (semi-annual) or one year (annual), depending on the insurance company.

Many companies have their own payment (installment) plans that allow you to pay the premium over a period of time, sometimes for a fee. If you decide to buy a policy on an installment plan, find out the applicable service fees.

If you use a premium finance company to pay for your insurance, the monthly payments may be easier; but the total of payments will be larger. Finance agreements are separate contracts that often include a limited power of attorney that gives the finance company some authority over the termination of your policy. Moreover, if the policy is cancelled, the insurance company must remit all return premiums to the finance company, who will apply them to your account.

Ask about higher deductibles. By requesting higher deductibles on comprehensive and collision coverage, you may be able to lower your costs. However, remember that the deductible you choose is what you are responsible for paying out of your pocket in the event you file a claim against your automobile insurance policy.

Should you drop comprehensive and/or collision coverage on an older car? It may not be cost-effective to have comprehensive or collision coverage on cars worth less than $1,000 because any claim you make would not substantially exceed the annual premium cost and deductible amounts.

Personal effects and equipment such as cellular telephones, compact discs, CD players and custom stereo speakers and systems that are not permanently installed in the vehicle by the manufacturer generally are not covered, unless specifically declared and added to the policy.

Read what you sign. Remember, you are ultimately responsible for the accuracy and completeness of the information on your application.

Teen drivers

Insuring a teen driver is often an additional cost for many parents. Some companies require that a teenager be added to the policy upon obtaining his/her learner’s permit. Check with your insurance producer (agent) or company to determine their requirements. Many companies consider drivers under the age of 25 a higher risk, and this often translates into higher premiums.

Your child may be eligible for discounts. Ask your insurance company if they offer discounts for good grades or completed driver education courses.

Mature drivers

Taking a driver safety training course is an excellent way to keep your driving skills sharp and it can also earn you a reduced rate on your automobile insurance, if your carrier offers such a discount. Pennsylvania law requires insurance companies to provide at least a five percent premium discount for each vehicle on a private passenger automobile policy under which all named policyholders are 55 years of age or older and have successfully completed a driver improvement course that meets the standards of Penn DOT. 75 Pa.C.S. § 1799.2. Individuals must take an approved course every three years to continue to be eligible for the discount, and they may be disqualified if within the three years of completing the course they are involved in a chargeable accident, convicted of a moving violation or are convicted - or have -Accelerated Rehabilitative Disposition (ARD) for driving under the influence of alcohol or a controlled substance.

Insurance companies recognize that mature drivers face unique challenges as they get older, and they may reward those mature drivers who take the initiative to minimize risk by enrolling in approved driver training courses.

Options for those without auto insurance

Pennsylvania’s Assigned Risk Plan is a program that offers automobile insurance to those who are unable to obtain coverage. All insurance companies writing automobile insurance in the commonwealth are required to participate in the plan. Applicants are assigned to insurance companies in proportion to the amount of business each company writes in the commonwealth. You may contact the plan’s customer service office at (401) 946-2800 or, toll-free, at (800) 477-6146

Pennsylvania’s Dept of Insurance
http://www.portal.state.pa.us/

Pennsylvania’s DMV
http://www.dmv.state.pa.us/

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Mandatory Auto Insurance Coverage

Georgia Bodily Injury & Property Damage Limits:

Bodily injury limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for bodily injury or death caused by an insured person in an auto accident.

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Property damage limit: This is the maximum amount your insurance policy will pay when an insured person becomes legally liable for damage in an auto accident to the property of other people (e.g. light poles, fences, another vehicle, etc.).

Bodily Injury & Property Damage coverage:

$25,000 person/$50,000 accident/$25,000 property

$50,000 person/$100,000 accident/$50,000 property

$100,000 person/$300,000 accident/$50,000 property

$100,000 person/$300,000 accident/$100,000 property

$250,000 person/$500,000 accident/$100,000 property

In Georgia a driver must have a minimum coverage of 25,000 for bodily injury to one person, $50,000 for bodily injury sustained by two or more persons in a single accident, and $25,000 for property damage that results from one accident. To adequately protect yourself, you may want to purchase much more than the minimum amount of coverage required for Georgia.

Common Exclusions: Bodily injury and property damage coverage apply to injury and damage from normal use of the insured vehicle. Coverage is limited by your policy and there may be some circumstances in which coverage does not apply. For example, in some policies coverage does not apply to:

1. Bodily injury or property damage arising out of the use of your vehicle while transporting people or property for a fee.
2. Injury or damage caused by an intentional act.
3. Injury or damage as a result of operating a vehicle owned by a person covered by your policy, where the vehicle is not listed on your policy.
4. Injury or death of you or a family member.
5. Property owned by, rented by or in the control of an insured person.

Please Note: This coverage definition is intended only as a guideline. All terms and coverage is defined solely by your policy.

Factors that Affect Car Insurance Rates

If you are a driver in Georgia (or anywhere for that matter), you know how complicated and confusing it can be to file a car accident claim, switch car insurance companies or simply add a person on to your policy. To help make things easier when dealing with your auto insurance company, we have listed some helpful tips for Georgia car insurance customers below. Understanding these items can not only save you a lot of time and money on your Georgia auto insurance, but it will also help you be better prepared in the event of a car accident.

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1. How your Georgia car insurance company determines your car's value after it has been declared a "total loss".
When totaling your car, your insurance company's goal is to help you find a new car within the same market. To do this, car insurance companies use three different methods for determining the value of the car declared a total loss, such as:

• Computerized vendor quotes
• Market research
• Online resources, such as Kelley Blue Book and Edumunds.com

If the car insurance company is unable to find a car from within your area, they may have to find a replacement car outside your zip code, which can dramatically affect your car's true value. For instance, if you reside in a big city within Georgia, such as Atlanta, Marietta or Augusta, then the cost of replacing your car will likely be more expensive then if you lived in a suburb or more rural part of Georgia.

2. Making a car insurance claim could increase your rates.
Typically, insurance companies raise your car insurance rate by 40 percent in the event of an accident. However, some insurance companies will only increase your personal rate as opposed to your entire rate, but that is at the discretion of the insurance company.

If you are a good driver that does not have any driving violations, then you will want to consider going with a car insurance company that offers an "accident forgiveness" or "forgive the first accident" policy. This will help keep your insurance premium from fluctuating in the event that you file a car insurance claim.

3. Your credit score does more than affect your credit, it can also affect your car insurance rate.
That's right; your credit score can impact how much you will pay for car insurance! Think it is not fair; well many insurance companies tend to disagree! Studies show that there is a direct correlation between your insurance risk score and the likelihood that you will file a car insurance claim. Your insurance score is used to evaluate your stability as a driver. So if you pay your bills on time, are in good standing and have a long standing credit history with lenders, then you will be more than likely be consider a dependable person. However, if you tend to pay your bills late, open and close credit frequently and are in poor standing with creditors, then you will likely be considered an unstable person and a potential threat on the road.

You can improve this "poor standing" by starting to pay your bills on time and establishing a good history with lenders. One way to start down this path is by contacting a free credit counseling service for guidance such as Consolidated Credit Counseling Services, Inc.

4. When switching car insurance companies, you must cancel your insurance policy first.
Though it is possible to cancel your coverage at anytime, it is important to note that many insurance companies require a written statement, including the date of termination, in order to officially close your car insurance policy. If you do not do this, and you receive and ignore the next bill, your policy will be canceled automatically by the insurance agency for delinquency of payment. The downside to this automatic cancellation is that it will show up on your credit record, which could potentially impact your credit score!

The safest thing to do when switching car insurance companies is to call your company and let them know that you are canceling your policy. The company will send you a cancellation request that needs to be filled out and sent back.

5. Adding a teen to your car insurance policy.
Most insurance companies do not require you to add your teen to your car insurance policy when they are a certain age, only when they receive their license. On the other hand, if you are in a high-risk pool, you may be required to add them when they receive their driver's permit. If you forget to add your licensed teen, and they are involved in a car accident, they will be covered; however, your insurance company may charge you back premiums from the date your teen received a license.

For your Georgia teen to begin the process of receiving their license, they must complete the following steps:

1. Pass the Driver Education Course to receive a Driving Eligibility Certificate.
2. Present the Certificate to get the Step 1: Learner's permit.
3. Practice driving with a parent or guardian supervisor in the passenger seat.
4. Complete required amount of in-car practice.
5. Take and pass the Alcohol & Drug Awareness Program.
6. Receive Level 2: Class D license.
7. Practice driving without a supervisor.
8. Receive Class C license at 18 years of age (or upon renewal).

This process is for first time drivers who are at least 15 years old. To ensure that the teen driver receives ample time to practice and to offset the number of accidents that involve teen drivers each year, Georgia has adopted a graduated licensing system called Teenage & Adult Driving Responsibility Act (TADRA) which includes:

Step 1: Learner's Permit
Parent or guardian must sign for the teen's driving permit after proof of residency and social security have been authenticated. The teen must also provide a Certificate of Attendance, which shows that the teen is currently attending school (or proof of graduation). In addition, Georgia teen drivers must always be accompanied by a licensed driver when they are behind the wheel.

Step 2: Class D License
Teens are eligible for a Class D license when they are between the ages of 16-18. They must pass both the written and the driving exam, and have had their learner's permit for at least 12 months. They must also have completed 40 hours of in car driving, six of which must be done at night. This level of license carries restrictions, such as no driving between 12am-6am, for the first 6 months, no non-family members in the car, and after 6 months, only 3 passengers under 21 years of age are permitted in the car at a time. A final requirement before they receive their Class D is that they must take and pass an Alcohol Drug Awareness Program. In order to receive their Class D license, Georgia teen drivers must present their Alcohol Drug Awareness Program certificate to their local DMV.

Step 3: Class C License
A Class C license is issued to those who are over 18 and have passed the written exam and driving test, or after having had a Class D license. To receive a Class C, your record must be clear of any traffic convictions for the previous 12 months.

To learn more about Georgia teen driver laws and regulations, please visit the Georgia DMV

6. Paying in installments may increase your car insurance.
"Fractional premium" fees are usually charged when you divide your car insurance annual premium into installments. Six month, quarterly or monthly are the typical breakdowns for most insurance companies. Generally, the more you break down your installments, the higher the administrative/fractional premium fees are. Always ask when applying for a new car insurance policy, and see exactly what the fees are for each payment you break down. Make sure to also ask your insurance provider if they offer an alternative way to make payments, such as Automatic Clearing House (ACH) processing, which withdrawals the funds right from your checking account. This may help eliminate processing fees while helping you stick to your budget.

7. How much does your car model affects your premium.
The auto insurance company premium rating system for cars is on a scale from 3 to 27. The ratings are established by the Insurance Services Office (ISO), and the higher the number of your model, the higher your premium will likely be. These numbers are only available to auto insurance companies - so, no luck trying to find out your car's number before you purchase your car. But you can contact your insurance company for a quote to gain an idea of how much it will cost to cover your new wheels.

8. Paying for someone else's bad driving.
If you loan your car to someone and they end up crashing it, you will have to file a claim with your car insurance company. As a result, you will have to pay your deductible (or any that apply) and your rates could potentially increase your car insurance rate. If your car is taken without permission, you are typically not held liable. If the driver is uninsured and causes damages exceeding your policy limit, the injured party may come after you for medical or property-damage expenses and not your friend.

9. Personal property in your car is not covered by your auto insurance.
Stolen or damaged items from within your car are not covered by your auto insurance policy. Most policies will only cover smaller and less expensive items like CDs, but if you carry more expensive things, you will want to consider adding a rider to your home insurance policy. Keeping photos or video of your items is also a good idea. If something is stolen from your car, you may have to file a claim on your home insurance if you do not have a rider in place.

Even though most states typically have similar laws in place for car insurance, they do not typically have similar car insurance rates. That's because Georgia car insurance rates are influenced by Georgia's geographic location and its state laws. With that being said, it is always a good idea to shop around and compare the rates of various auto insurance companies. To assist you in the process Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the cheapest auto insurance coverage for your budget

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Ways to Establish Financial Responsibility

When establishing financial responsibility, the state allows vehicle owners to:

• Purchase liability coverage from a carrier licensed to sell auto insurance in Tennessee.
• Post a cash deposit or bond with the Department of Safety (DOS).

NOTE: The state also allows businesses and government agencies with 25 or more vehicles to apply to qualify as self-insurers.

Tennessee Liability Insurance Requirements for Private Passenger Vehicles

If you choose to purchase traditional liability insurance to satisfy the state’s financial responsibility requirements, your policy must meet these minimums:

• $25,000 for one injury or death
• $50,000 for all injuries or deaths
• $15,000 for property damage for one accident

Keep in mind there are plenty of additional types of coverage that might suit your insurance needs better than simple liability insurance. If you’re doing business with a lienholder, for example, purchasing additional insurance such as comprehension or collision coverage might be a requirement until you’ve paid off your auto loan.

Proof of Insurance and Financial Responsibility

You can show proof of insurance when you:

• Show the insurance card, binder, or declaration binder your insurance carrier issues you.
  Show the certificate from the DOS that state you’ve posted a cash deposit or bond in the amount required.

Because the most common circumstances in which you’ll need to show proof of financial responsibility are times when law enforcement pulls you over or you’re involved in an accident, it’s best to keep this proof in your vehicle at all times.

Penalties for Failure to Maintain Financial Responsibility

The DOS outlines the penalties for failure to maintain financial responsibility. Simply put, a conviction of having no proof of insurance when a law enforcement officer stops you or you’re involved in an auto accident is a Class C misdemeanor and results in:

• A fine of no more than $100.
• License suspension.
• A STOP against your vehicle file, which prevents you from renewing your registration.

Getting back on track generally means paying your fine, obtaining and showing proof of financial responsibility, and then reinstating your license. If you need further instructions specific to your situation, please contact the DOS at (866) 903-7357.

Factors that Affect Car Insurance Rates

If you are a driver in Tennessee or anywhere for that matter, you know how complicated and confusing it can be to file a car accident claim, switch car insurance companies or add a person on to your policy. To help make things easier when dealing with your auto insurance company, we have listed some helpful tips for Tennessee car insurance customers below. Understanding these items can not only save you a lot of time and money on your Tennessee auto insurance, but it will also help you be better prepared in the event of a car accident.

1. How your Tennessee car insurance company determines your car's value after it has been declared a "total loss"
When totaling your car, your insurance company's goal is to help you find a new car within the same market. To do this, car insurance companies use three different methods for determining the value of the car declared a total loss, such as:

• Computerized vendor quotes
• Market research
• Online resources, such as Kelley Blue Book and Edmunds.com

If the car insurance company is unable to find a car from within your area, they may have to find a replacement car outside your zip code, which can dramatically affect your car's true value. For instance, if you reside in a big city within Tennessee, such as Nashville, Memphis or Chattanooga, then the cost of replacing your car will likely be more expensive then if you lived in a suburb or more rural part of Tennessee.

2. Making a car insurance claim could increase your rates
Typically, insurance companies raise your car insurance rate by 40 percent in the event of an accident. However, some insurance companies will only increase your personal rate as opposed to your entire rate, but that is at the discretion of the insurance company. If you are a good driver that does not have any driving violations, then you will want to consider going with a car insurance company that offers an "accident forgiveness" or "forgive the first accident" policy. This will help keep your insurance from fluctuating in the event that you file a car insurance claim.

3. Your credit history may determine your insurance premium
In the State of Tennessee, the use of your credit history to determine your insurance premium is permissible. It may be used to determine your payment options, be them monthly, quarterly, or having to pay the entire premium at once. Your history may also be used by insurance companies to create an "insurance risk score". This score is used as a factor in determining your auto insurance rates.

Pay your bills on time and try to improve your score if it is less than ideal. In doing so, you are helping to improve your credit history in the long run and you may save money on your car insurance premium.

4. When switching car insurance companies, you must cancel your insurance policy first
Though it is possible to cancel your coverage at anytime, it is important to note that many insurance companies require a written statement, including the date of termination, in order to officially close your car insurance policy. If you do not do this, and you receive and ignore the next bill, your policy will be canceled automatically by the insurance agency for delinquency of payment. The downside to this automatic cancellation is that it will show up on your credit record, which could potentially impact your credit score!

The safest thing to do when switching car insurance companies is to call your company and let them know that you are canceling your policy. The company will send you a cancellation request that needs to be filled out and sent back in.

5. Adding a teen to your car insurance policy
Most insurance companies do not require you to add your teen to your car insurance policy when they are a certain age, only when they receive their license. On the other hand, if you are in a high-risk pool, you may be required to add them when they receive their driver's permit. If you forget to add your licensed teen, and they are involved in a car accident, they will be covered; however, your insurance company may charge you back premiums from the date your teen received their license.

For your Tennessee teen to begin the process of receiving their license, they must complete the following steps:

1. Obtain a permit packet from the DMV
2. Pass the vision and written test
3. Obtain a learner permit
4. Practice driving with a licensed adult for at least 180 days
5. Pass the Tennessee driver's test and complete 50 hours of behind-the-wheel training
6. Obtain an intermediate restricted license
7. Receive an intermediate unrestricted license at 17
8. Apply for full graduated driver license at 18

This process is for first time drivers who are at least 15 years old. To ensure that the teen driver receives ample time to practice and to offset the number of accidents that involve teen drivers each year, Tennessee has different privileges for each license in their graduated license system:

Learner Permit
At 15 years old, a teen can apply for their learner permit. A parent or guardian must sign for the teen's driving permit after proof of residency and social security number have been verified by the DMV. The teen must take and pass a knowledge test in order to obtain their Learner's Permit. While driving under this type of permit, the teen must be accompanied by a licensed, adult driver over the age of 21 and is limited to driving between the hours of 6a.m. - 10p.m. Tennessee teens must have their Learner's Permit for at least 180 days before they can apply for their immediate restricted license.

Intermediate Restricted License
To receive an intermediate restricted license, the teen must be at least 16 years old, have had their Learner's Permit for 180 days, completed 50 hours of behind-the-wheel driving, and passed a driving skills road test. Once they have met these requirements, they can drive unsupervised between the hours of 6a.m. - 11 p.m. with no more than one passenger in the car, unless otherwise accompanied by a licensed adult over the age of 21.

Intermediate Unrestricted License
When the teen is at least 17 years old and has had their intermediate restricted license for at least one year, they are able to apply for their intermediate unrestricted license.

Graduated Driver License
Once the teen has completed the requirements needed and are 18 years old, they are then able to apply for a Graduated Driver's License. The "intermediate" word will be removed from their license, but the license will still have the "under 21" indicator.

To learn more about Tennessee's teen driver laws and regulations, please visit the Tennessee DMV.

6. Paying in installments may increase your car insurance
"Fractional premium" fees are usually charged when you divide your car insurance annual premium into installments. Six month, quarterly or monthly are the typical breakdowns for most insurance companies. Generally, the more you break down your installments, the higher the administrative/fractional premium fees will be. Always ask when applying for a new car insurance policy, and see exactly what the fees are for each payment you break down. Make sure to also ask your insurance provider if they offer an alternative way to make payments, such as Automatic Clearing House (ACH) processing, which withdrawals the funds right from your checking account. This may help eliminate processing fees while helping you stick to your budget.

7. How much does your car model affect your premium
The auto insurance company premium rating system for cars is on a scale from three to 27. The ratings are established by the Insurance Services Office (ISO), and the higher the number of your model, the higher your premium will likely be. These numbers are only available to auto insurance companies - so, you're unable to try and find out your car's number before you purchase your car. But you can contact your car insurance company for a quote to gain an idea of how much it will cost to cover your new wheels.

8. Paying for someone else's bad driving
If you loan your car to someone and they end up crashing it, you will have to file a claim with your car insurance company. As a result, you will have to pay your deductible (or any that apply) and your rates could potentially increase your car insurance rate. If your car is taken without permission, you are typically not held liable. If the driver is uninsured and causes damages exceeding your policy limit, the injured party may come after you for medical or property-damage expenses and not your friend.

Even though most states typically have similar laws in place for car insurance, they do not typically have similar car insurance rates. That's because Tennessee car insurance rates are influenced by Tennessee's geographic location and its state laws. With that being said, it is always a good idea to shop around and compare the rates of various auto insurance companies. To assist you in the process Insurance.com offers an auto insurance comparison application. Here, you will be able to evaluate multiple rates from best-in-class insurance providers - helping you find the cheapest auto insurance coverage for your budget.

Tennessee Dept of Insurance

http://tn.gov/commerce/

Tennessee Tag and Registration

http://www.tn.gov/revenue/vehicle/

Tennessee DMV

http://www.tn.gov/safety/dlmain.shtml

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Ways to Establish Financial Responsibility

To meet financial responsibility requirements, many vehicle owners choose to purchase liability coverage from carriers licensed to sell insurance in the state; however, you can also obtain proof of financial responsibility when you:

• Obtain a Motor Vehicle Liability Bond for no less than $50,000.
• Obtain a Certificate of Cash Bond for no less than $50,000.

Alabama Liability Insurance Requirements for Private Passenger Vehicles

If you choose to purchase traditional liability coverage from an insurance carrier rather than obtain a Motor Vehicle Liability Bond or Certificate of Cash Bond, your policy must include:

• $25,000 injury liability for one person
• $50,000 for all injuries in one accident
• $25,000 property damage in one accident

Purchasing basic liability coverage ensures you’re meeting the state’s minimum financial responsibility requirements, but there are many other kinds of coverage available to help you further protect yourself and your vehicle.

Proof of Insurance and Financial Responsibility

You must carry proof of insurance in your vehicle at all times. There are several ways you can show proof that you’re meeting the state’s financial responsibility requirements:

• An insurance card, premium receipt, binder, declarations page, or a certificate of liability policy from your provider.
• A copy of your liability insurance policy.
• A copy of the proof of vehicle purchase and the old insurance card for the vehicle your purchase replaced (only valid for 60 days after purchasing the new vehicle).
• A copy of the rental agreement if you’re renting the vehicle.
• A copy of your Motor Vehicle Liability Bond.
• A copy of your Certificate of Cash Bond.

Penalties for Failure to Maintain Financial Responsibility

The Motor Vehicle Division (MVD) can suspend your vehicle’s tag registration if you fail to maintain financial responsibility. The steps to reinstate the registration depend on the offense number:

• First Offense: You must obtain and provide proof of liability insurance and pay a reinstatement fee of $100.
• Second Offense: Your registration will stay suspended for four months, you must obtain and provide proof of liability insurance, and you must pay a reinstatement fee of $200.

Need more information about the state’s financial responsibility requirements, penalties for no proof of insurance, and how to reinstate your vehicle registration? Contact the MVD at (334) 242-3000.

Alabama Motor Vehicle Division

http://www.ador.state.al.us/motorvehicle/index.html

Alabama Dept of Insurance

http://www.aldoi.gov/

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