Reader’s Question:

I was driving my way to work. As I was sitting at a red light, someone just rear-ended me. It wasn’t my fault, but my car insurance premiums in Arizona just went up. What happened here?

Tracy

Gilbert, AZ

That’s quite tough, Tracy.

Chances are, your auto insurance company in Arizona might be penalizing you for an accident or traffic violation that happened to you even months before that recent incident. For someone who has a spotless driving record, it is very unlikely that the auto insurance premiums will increase after any accident that is not your fault. But even a single traffic violation or any fender-bender in the past will surely yield an auto insurance increase. Every company would vary with regards to length of time between accidents in classifying you as “accident prone”.
Determining who’s at fault in any driving mishap is always by the traffic authorities. Whoever gets the ticket during any incident is always the one at fault and you can never turn that around even if you think you had no fault. With what happened to you though, even if you were rear-ended while you were minding your own business, your auto insurance company will still base premiums on risk factors. Try to recall if you’ve had any speeding ticket or other traffic violations prior to this accident you just had. If you had one, then your auto insurance company might have deemed you to be an at-risk driver. The increase then is not necessarily because of the most recent accident. Auto insurance rates are correlated to your overall propensity toward accidents.

Reader’s Question:

Can I purchase auto insurance without a Social Security number in Arizona?

Patrick

Chandler, AZ

Yes, you can purchase car insurance in Arizona without a SSN but insurance providers will require you to have a US driver’s license which depending upon state laws in which you reside in, you may be required to have a social security number in order to get a license.

There are controversies over the use of credit scores for insurance rating, however the bottom line is that insurance providers have not been able to find a better indicator of risk factors other than using a simple credit-based insurance score along with the other factors that can affect auto insurance rate. It is not less controversial than the use of marital status or sex and even age as a factor. Each of these factors have come under public scrutiny as biased and a form of profiling. Insurance providers are trying to assign an insurance rate to a risk pool. They work hard to determine risks and assist the pool by having those contributors pay their equal share.

Reader’s Question:

My auto insurance has been canceled in the past due to non-payment, am I required to pay the entire car insurance premium up front?

Jim

Gilbert, AZ

You might have to pay your whole auto insurance up front, instead of financing or making payments along the way, if you have had a lapse of coverage. This will depend upon the underwriting rules of the car insurance company you are trying to get insurance with and if you will be required to make a payment in full for your next car insurance policy.

You may in fact be required in Arizona to pay in full and have your car insurance agent file a financial requirement certificate or SR22. Some states require a six month paid in full if you have allowed your car insurance to lapse. The Financial Responsibility certificate is referred to as an SR22 in Arizona.

Reader’s Question:

I am over 60 years old and retired. Should I get uninsured/underinsured motorist coverage? My insurance agent said that I don’t need it because I am retired and have Medicare. What do you think I should do? I live in Tucson Arizona.

George

Tucson, AZ

The best way is to purchase as much insurance as you can afford. It may not be easy to decide about such “extras” as uninsured and underinsured motorist coverage, especially if your insurance broker in Tucson Arizona has given you an advice already. From what you have said, I would keep the coverage. Usually its premium is a small portion of your total premium.

Like all insurance policy, you wish you had more only when you need it.

I would recommend contacting the Arizona Department of Insurance consumer division for car insurance. Having the Arizona state facts about how often this type of insurance is needed at their fingertips, they should assist you make your final decision regarding this type of coverage.

Reader’s Question:

Can I drive out-of-state with a Restricted License or Conditional license?

Jamie

Phoenix, AZ

If you have a restricted or conditional license because to your main full driving privileges being suspended or revoked, then normally there are limitations to where and when you can operate the vehicle. Each state has different rules and guidelines for where you can go with a restricted license.

For instance in Arizona you can only go between your place of employment and your place of residence during specified period of time, secondary or post secondary school according to your educational schedule, treatment facility and office of your probation officer, office of a physician.

If you have a conditional or restricted license and need to drive out of state you will need to check with your Arizona Department of Motor Vehicles to to verify if you can do so. If it is for work, school or an emergency, likely the limitations on your license will not permit you to do so.

Reader’s Question;

Can a 17 year old teen buy and insure a vehicle from a private seller in Mesa Arizona with cash without consent from parent?

Amy

Mesa, AZ

This will depend upon state laws if a seventeen year old teen (or any aged minor) can buy a vehicle from a private seller in Mesa Arizona with cash without getting their parent’s consent. The age at which an individual can legally have ownership of a car varies from state to state.

Generally, a teen or minor cannot enter into a contract therefore cannot be a sole owner of a car. Normally a minor cannot actually own a property. Technically, his or her parents own that property. If a parent or a guardian will co-sign on a loan for a vehicle, the minor can purchase a vehicle, but the parent will be the legal owner.

There can be exceptions to this generalization and this depend upon state laws. For instance in Arizona, they have an emancipation statute for teens or minors over 16 who can show they are sufficiently mature to handle their own financial and health-related responsibilities. If the order is granted, the minor may be able to enter into legally-binding contracts for the purchase of property, including vehicles and insurance.