Insurance Rules

[torob]

How does insurance exactly work?
I always thought every driver needs to get insurance to be able to drive car X.

For example if a parent has insurance, then the child also need to buy insurance if he/she wants to drive.. but if the child doesn't buy their own insurance then if pulled over they'll get a "no insurance" ticket -- which i heard is up to $2000 fine

But a friend is telling me that, if a parent has insurance, then the child doesn't need to get insurance because they are covered under the parent. But if you crash then the original insured person, the parent, is fucked... but if you get pulled over, you won't get a no insurance ticket

So which one is it ?

[Jetta-2.0]

you wont get a ticket if your driving your mom/dads car. If a cop stops you and asks for Insurance then you give him what you have, some of them can be annoying and ask if u are allowed to drive the car and some times make a call to the parents to make sure you are allowed to drive the car. Now if you get in a car crash and your not under the Insurance under your mom or dad then the Insurance might be dicks and tell your mom or dad that hes not under your Insurance and we will not fix your car or who ever you hit, but some do have nice spots and they let the first one slide but your Insurance will sky rock after wards :thumbsdow so if you want to drive ur moms/dads car make sure they put you as a second driver on there Insurance their Insurance is goin to go up beacuse you are under 25 but youll then be coverd

[torob]

Originally posted by Jetta-2.0
you wont get a ticket if your driving your mom/dads car. If a cop stops you and asks for Insurance then you give him what you have, some of them can be annoying and ask if u are allowed to drive the car and some times make a call to the parents to make sure you are allowed to drive the car. Now if you get in a car crash and your not under the Insurance under your mom or dad then the Insurance might be dicks and tell your mom or dad that hes not under your Insurance and we will not fix your car or who ever you hit, but some do have nice spots and they let the first one slide but your Insurance will sky rock after wards :thumbsdow so if you want to drive ur moms/dads car make sure they put you as a second driver on there Insurance their Insurance is goin to go up beacuse you are under 25 but youll then be coverd

Thats interesting, never knew that - thanks

[Kloubek]

So... I gots a question then...

As I understand it, there is a "grace period" whereby, if you buy a new car, you can drive it under the same insurance for a period of 12 or 14 days or something like that.

If the previous owner signed it over via the little registration slip and didn't put down the date of sale, what is to stop someone from driving around without changing over the insurance and/or registration?

[Zero102]

Originally posted by Kloubek
So... I gots a question then...

As I understand it, there is a "grace period" whereby, if you buy a new car, you can drive it under the same insurance for a period of 12 or 14 days or something like that.

If the previous owner signed it over via the little registration slip and didn't put down the date of sale, what is to stop someone from driving around without changing over the insurance and/or registration?

The lack of date on the bill of sale indicating you are within 14 days? :dunno:
In order for this to be valid you must present a DATED bill of sale. That said, I know somebody who drove a car for nearly 18 months by constantly re-writing bills of sale to keep in the car.
Generally your insurance will not transfer the comprehensive or collision coverage onto the new car, so if you have any interest in having either of these coverages you should get the insurance transferred over.



About the borrowing your parent's car question, when your parents get their insurance they are required to report all licensed drivers living in the same house. These people must all be listed on the insurance. If your parents insurance has the same address as your license, and you are not listed on the pink slips it is very likely they will not cover you in the event of a collision. As far as getting a driving without insurance ticket you are probably in the clear.

[FraserB]

No ticket for no insurance, I'm covered under my parents insurance as an occasional driver while I look for a new car. When I had my own, I could still legally drive theirs under the same title of occasional driver. I assume most cops will see the same address on the registration and DL and figure that you have permission, some might make a phone call though.

[Masked Bandit]

Originally posted by Kloubek
So... I gots a question then...

As I understand it, there is a "grace period" whereby, if you buy a new car, you can drive it under the same insurance for a period of 12 or 14 days or something like that.

If the previous owner signed it over via the little registration slip and didn't put down the date of sale, what is to stop someone from driving around without changing over the insurance and/or registration?

You have to be a little careful with this one. There are several rules and conditions that come along with the 14 day "Newly Acquired Automobile" provision. I suggest you discuss with your broker to verify that you qualify in the first place (not everyone does). Aside from that if you had an accident the insurance company may contact the prior owner to verify when they sold you the vehicle.

Can this loophole be used in a dishonest manor? Absolutely.

[95EagleAWD]

Originally posted by Kloubek
So... I gots a question then...

As I understand it, there is a "grace period" whereby, if you buy a new car, you can drive it under the same insurance for a period of 12 or 14 days or something like that.

If the previous owner signed it over via the little registration slip and didn't put down the date of sale, what is to stop someone from driving around without changing over the insurance and/or registration?

It absolutely does not.

That rule simply covers the use of a license plate that was on your previous car on the new one for a short period.

You MUST have insurance on your car by calling your company, showing them the BOS and getting all the right paperwork.

[WildWolf]

Originally posted by Kloubek
So... I gots a question then...

As I understand it, there is a "grace period" whereby, if you buy a new car, you can drive it under the same insurance for a period of 12 or 14 days or something like that.

If the previous owner signed it over via the little registration slip and didn't put down the date of sale, what is to stop someone from driving around without changing over the insurance and/or registration?

I just was talking to my insurance company about this yesterday. If you sell/trade/dispose of your vehicle, and in the process buy a new vehicle, you can transfer the plate from the old vehicle onto the new vehicle.

It can only be done on vehicles of the same type (ie. you can not put your passenger vehicle plate on an 18 wheeler) and you will have the same coverage for up to a maximum of 14 days from the date you got rid of the car they belong on.

I was advised to keep the bill of sale for both vehicles in the vehicle until I transferred the insurance and registration.

This was my understanding of what I was told. Best bet is to always give the insurance company a phone call.

[moka989]

All the 14 day period is for is if you have insurance and regerstration on car X and then you buy car A you can swap plates from car X onto car A and drive A legally for 14 with the bill of sale, therefore giving you an allowance of time to change over regerstration and insurance from car X to car A. That's it. I asked a month ago at AMA that's what my guy told me

[95EagleAWD]

Originally posted by moka989
All the 14 day period is for is if you have insurance and regerstration on car X and then you buy car A you can swap plates from car X onto car A and drive A legally for 14 with the bill of sale, therefore giving you an allowance of time to change over regerstration and insurance from car X to car A. That's it. I asked a month ago at AMA that's what my guy told me

It's only for registration. Your INSURANCE must be transferred right away.

[Kloubek]

^^^ Well, I'm guessing you WOULD know...

Thanks for the info.

[tom_9109]

Under the Alberta standard automobile policy If you acquire a new vehicle and currently have insurance on all the vehicle you own and they are all with the same company your insurer agrees to cover that newly acquired vehicle for a period of 14 days with the smallest amounts of coverage on any of your owned vehicles.

Always best to call the insurance company right away.


If you're driving someone else's vehicle and they have insurance you are covered provided you have consent to be driving it. In the case you're not supposed to, IE 'No drivers under 25' and you get into an accident their collision probably will not cover the damage to the vehicle you're driving but the insurer must cover the third party liability to the minimum amount required by Alberta law, $200,000. This is called 'absolute liability' and the will try to recover any amount paid out under absolute liability from the policy holder.

[Masked Bandit]

Originally posted by 95EagleAWD


It's only for registration. Your INSURANCE must be transferred right away.


No, that's not true. There is a provision in the SPF#1 for newly acquired automobiles that allow up to 14 days for insurance extension under certain circumstances.

[Kloubek]

See... I know the issue has been brought up before. But there has always been debates over what the ACTUAL rules are. Is there no government link or anything online that shows people EXACTLY what the rules are?

And furthermore, with all this indecision on the rules, how are the public supposed to know the rules anyway? We have a CAR message forum here, and there is STILL debate over what the rules are.

Honestly, I think Canadians would benifit from a site which lists all the laws. The could require municipalities to include theirs as well, since some could differ from city to city. Would this site be ridiculously full of information? Of course it would. But it has always bothered me how people can get arrrested, fined, or otherwise in trouble for laws they don't even know exist. Some may say it is due dilligence to inquire about laws, but
a) It is hard to inquire about things when you are not even aware you would need to
b) Even if you do, there is mixed information like we see in this thread.

[speedog]

Isn't this all just as simple as "Why doesn't torob just call their insurance company"?

[torob]

Originally posted by speedog
Isn't this all just as simple as "Why doesn't torob just call their insurance company"?

I got my answer in the first respond to the thread... the rest was just other questions in regards to insurance -- topic continued instead of making new thread

I didn't call insurance because what i would get from them wouldn't probably be as detailed or easy to understand compared to what i would get here.

[speedog]

No problem, was just wondering because this thread has kind of rambled on for what should have been something pretty simple.

[scat19]

Every insurance company is different too... so I would have just called the best source for information. :dunno: :dunno:

[Kloubek]

Just read the thread Speedog, and you'd have your answer! :thumbsup:

[speedog]

Yupp, I guess so. Shouldn't have been so quick to judge I guess.

[Zero102]

Originally posted by Kloubek
See... I know the issue has been brought up before. But there has always been debates over what the ACTUAL rules are. Is there no government link or anything online that shows people EXACTLY what the rules are?

And furthermore, with all this indecision on the rules, how are the public supposed to know the rules anyway? We have a CAR message forum here, and there is STILL debate over what the rules are.

Honestly, I think Canadians would benifit from a site which lists all the laws. The could require municipalities to include theirs as well, since some could differ from city to city. Would this site be ridiculously full of information? Of course it would. But it has always bothered me how people can get arrrested, fined, or otherwise in trouble for laws they don't even know exist. Some may say it is due dilligence to inquire about laws, but
a) It is hard to inquire about things when you are not even aware you would need to
b) Even if you do, there is mixed information like we see in this thread.

The fact is that there IS a site that tells you EXACTLY what the rules are in this matter, I have posted links to it probably 5 times now. Basically, 95EagleAWD is wrong, your insurance is valid on the new vehicle for 14 days. Depending on the insurance company, collision and comprehensive typically do not transfer over (or rather, are not required to transfer over) until you properly insure the new vehicle, but you will have PLPD insurance to get the car home.

I am hunting for the links now and will post them when I find them

*EDIT*
Found the Insurance one:
http://www.finance.alberta.ca/publications/insurance/standard_automobile_policy_2007.pdf
Bottom of page 12

However, I am still trying to find the vehicle registration regulations, those specify about using a plate for 14 days on a new vehicle.

[Masked Bandit]

Originally posted by torob



I didn't call insurance because what i would get from them wouldn't probably be as detailed or easy to understand compared to what i would get here.

Really? That definitely shouldn't be the case. The fact that a collective of (mostly) non-insurance people can provide you with better information than your broker is pretty damn sad. Who are you with?

[95EagleAWD]

Bah!

I owe an asshole MP at CFB Wainwright a kick in the head then.

:whipped: