Santa Ana, California Auto Insurance
Reader’s Question:
I bought a car in my name in Santa Ana, California (CA), and I need insurance for it but my license has been suspended. Can I insure my vehicle to someone else’s name or, can I insure it with suspended license?
Matt
Santa Ana, CA
Even though your driver’s license is suspended, some insurance companies will permit you to insure your vehicle.
There are some insurance company that will allow it, but they will require you provide them proof of it’s reinstatement within 30 days from your policy’s inception date. Otherwise, they will cancel your policy.
There are also insurance providers that will permit someone else to insure your car in their name, even if that individual has no insurable interest in your car. Those carriers are limited and they do require the owner to be listed as a driver on the insurance policy. Under certain circumstances you may be listed on the policy, but you would not be included and not covered under the policy terms.
Car Insurance Information
Reader’s Question:
If I pay my car insurance every month, does it helps me to build good credit standing?
Gene
Sacramento, CA
Typically car insurance premiums are not paid on a loan contract, but rather directly to the insurance providers. You pay for future coverage and if you don’t pay, then you wont have future coverage, therefore no credit is being given to the consumer. In some circumstances, you may finance your premium through a premium finance contract but those contracts don’t report to a credit bureau and like I said if you don’t pay the collateral (coverage) is removed.
If you have unpaid premiums or outstanding balances for coverage received then a company will try to collect. If they can’t collect they may forward to a collection agency. Those will for sure negatively affect your credit rating.
Not having a credit history can make it hard to get insurance, buy a car or get a house mortgage. A credit score is assigned by many insurance providers and it is based on your credit history including such things as bill paying history, late payments, the number and type of accounts you have, collection actions and outstanding debt. Your payment history typically makes up the most important aspect of this, about 35 percent usually.
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