Do You Need Rental Vehicle Insurance in New York?
Reader’s Question:
I am from Mexico and I am going to New York for a business trip. I will be staying there for just a few weeks; however, I would still need to rent a vehicle to aid me in my work. Can I drive even with just my driver’s license? How can I get insurance if I only have my driver’s license?
Arthur
New York, NY
The International Convention on Road Traffic is formed to institute standardized reciprocal privileges on matters such as driving. This convention includes the United States and some 100 countries around the world. It includes an agreement on allowing foreign drivers to drive in the US using a private vehicle, on certain conditions only.
The NY State Department of Motor Vehicles states that a valid foreign driver’s license is considered to be valid too in the state of NY. However, this foreign driver must confirm that he is still a resident of his own country in order for the NYS to verify the validity of the foreign driver’s license. This foreign license is needed to get an international driver’s permit. This permit does not stand as a driver’s license but only a guarantee that the foreigner has a valid driver’s license in his home country.
Most car rental companies allow foreign drivers to rent vehicles provided that they are above 25 years old, have a valid license from their home country, and have an international driver’s permit.
Most insurance companies do not accommodate foreign visitors who don’t have US driver’s permit. There may be some who sell auto insurance policies but you have to show them valid foreign driver’s license and international driver’s permit. If the foreign visitor has an auto insurance policy in his home country, then he may ask the insurance carrier if they can cover a rented vehicle in the US.
Want Cheaper Auto Insurance Premiums in New York?
Reader’s Question:
One auto insurance company here in New York is charging me higher premiums for their insurance, citing my not-so-good credit history as reason for my not getting cheaper auto insurance. Do they really look into people’s credit history? What for?
Daisy
Albany, NY
Interesting question. Really interesting question. I asked around, too, and did some research on my own, you see. And here is what I got.
There are some auto insurance companies (I suppose that includes yours there in New York) that take into account one’s credit history. They feel that a good credit standing is a reflection of how good one’s behavior would be when the time comes that he or she would be making the claims on the auto insurance. They think that a good credit history can prevent unpleasant insurance losses. From my own point of view, I do not see where this line of reasoning is coming from.
Well, anyway, apart from your credit history, these auto insurance companies consider a few other things about you, and they are: your age, your driving record, the state you live in, your type of vehicle, and so on. These are the factors that the auto insurance company will consider when computing for your premium.
So, if you’re after cheaper auto insurance premiums, you should start working on cleaning up your credit record this year. By next year, you may ask certification from the Credit Bureau. That way, you may avail of auto insurance discounts that someone who does not have a good credit record normally would not enjoy.
Given a Ticket For Talking On Cell Phone While Driving in New York?
Reader’s Question:
I received a ticket in New York because I was caught talking on a cellphone while driving. The police officer told me that no points will be placed. How will this incident affect my insurance rates?
Gene
North Hempstead, NY
The law of the states of New York does not allow any mobile device while driving except when calling 911, medical
fire or police in a state of emergency. Failure to comply with this law entails a maximum fine of $100 and a surcharge
of $50 aside from the ticket.
The ofense is not considered as probationary license violation and you will not receive points for this since you received a ticket.
Your insurance company will determine whether the incident will affect your insurance rates. Some insurance provider, though, does not increase the rates if the violation is only minor. If the offense is repeating, this may become a concern and may remove any privileges like driver discounts.
Auto Insurance Lapse – Need Temporary Auto Insurance in New York
Reader’s Question:
I have an unregistered car in community parking lot. Because of the insurance lapse in NY, my registration is suspended so I returned the car plates. But my community apartment parking management warned me of towing my car because it is not registered. Since I do not have a private home, where should I store my car? Is there a temporary parking registration? Where can I get this?
Mishi
Brooklyn, NY
As you are aware, registration and driver’s license will be suspended indefinitely if the car is without insurance and he owner fails to surrender the vehicle plates to the New York DMV.
On the otherhand, a lapse in your insurance coverage in New York State and failure to immediately surrender the vehicle plates will suspend the registration for the same number of days that the car is without an insurance but has held the vehicle plates. You should pay the termination fee of $25 when the suspension period ends to reinstate your driver’s license.
The site of New York State Department of Motor Vehicles provides a list of the civil penalties amounts for registration suspensions caused by insurance lapse. You can look for a private storage facility to solve you parking situation until you get your plates back and reinstate your registration since most of the pubic lot, like your apartment’s parking lot, will tow vehicles if the parking lot management finds out that the car is without a registration.
You can check with NYS DMV if there is any temporary parking registration or any other type of decal that you could place on your car while it is in current location so that the car will not be towed.
What Is The Minimum Auto Insurance Needed in New York?
Reader’s Question:
I would like to know what is the minimum insurance that I should have for my car. Is it okay to get just the minimum or should I buy more insurance? This is Chris from Buffalo, New York.
Chris
Buffalo, NY
Hey Chris. If you want to drive legally in Buffalo, New York, you will need to have liability insurance with the following minimum amounts of coverage: $10000 for property damage, a minimum of $25000 and maximum of $50000 for injury and a minimum of $50000 for death with a maximum of $100000. Your coverage for liability has to remain in effect even if the vehicle is not used as long as the registration is valid. Now, as to your question on getting more coverage, this would be dependent upon several factors as well. First of all, you will have to decide up to how much can you pay for your insurance. Second, take into consideration your ability to pay out of your own pocket if ever something happens that is not covered by your insurance?
Next think about the value of your car both to your lifestyle and as an asset in your personal finance books. Now, decide whether it is more practical for you to pay a higher premium for more coverage, then get more insurance. Generally you would do this if your car is relatively new, or too costly to repair on your own. Otherwise, it may be better to just keep a little more in your bank account to tide you over if you do have to pay out of your own pocket should anything happen.
Tags: auto insurance, car insurance
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