Car Insurance for Young Drivers in Illinois
Reader’s Question:
Does a teen-age child need to have a car insurance to drive their parent’s car in the state of Illinois? We live in Cicero, IL.
Tyler
Cicero, IL
Normally, the requirement of adding a newly licensed child to your auto insurance policy is stated in your car insurance company’s guidelines and is not a mandate from your state. Majority of insurance companies would require you to list all licensed drivers living in your household on your insurance policy so that they will be properly covered to drive your cars in cases of accident claims. You should contact your insurance agent as early as your teen-age child has obtained his driver’s learner’s permit to see if you need to add him during this stage or you can wait until he is fully licensed before adding him to your policy.
What will happen if your insurance company is not informed of the licensing status of your teen-age child and is not added during the time of an accident involving him operating your vehicle? It may be possible for the insurance carrier to deny your accident claim. There are also instances of car insurance companies covering the claim initially but then charging you for the premiums that should have been previously paid for if your teen-age child has been added early on.
You can also shop for auto insurance quotes in Cicero IL for your teen-age child car insurance online.
Does Car Insurance Improvements Affect my Car Insurance Rate?
Reader’s Question:
If after completely restoring my 1965 Ford Mustang two-door convertible which cost me $8,750 ( the work needed replacement for the dented quarter-panels, fixing some rust, painting the exterior with the original color, reupholstering the interior, and adding a new rag top), the car is now worth about $22,200. How would my car insurance rate in Champaign, IL be affected now that my car should have a higher market value?
Jane
Champaign, IL
Now is a good time for you to buy a stated-value policy if you do not want depreciation to start at the $8,750 you paid, but at the $22,200 your car is now worth. Without a stated-value policy, it is going to be harder for you to convince your insurer of the increase in your car’s value.
You also could get your insurer to provide you with a rider for improvements, but really the compensation will come on the back end. The appraiser should include upgrades, and you should definitely take credit for things that improve the value of your car. It is always advisable to touch base with your Champaign, IL agent or insurance company before you get into an accident; to be sure any upgrades are covered.
A word of warning though: Not all car improvements will result in an increase your car’s market value. In some cases, what you may see as an improvement may actually hurt your car’s value. Let’s say putting your truck on a high frame with huge wheels may make you feel like you’re on top of the world, but your insurer may not agree that it increases the value of the car since these changes appeal to a limited audience.
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