Reader’s Question:

Can I rent a car in Yuma, Arizona if I am currently driving my mother’s vehicle and covered under her insurance but not on my own?

Anne

Yuma, AZ

Many rental car companies in Yuma, Arizona will rent you a vehicle as long as you meet the requirements of their “terms & conditions” and a rental vehicle is available. Most rental companies offer a lot of ways to insure your rental vehicle, simplest is either by using your own car insurance policy, or by buying rental insurance from the rental company.

Since you are already included in an insurance policy, you may be able to use your own insurance to insure your rental vehicle. This all depends on the coverage you have and the rules of your insurance provider with regards to rental cars. You can contact your insurance provider to know what kind of coverage you have and what you can do when renting a vehicle. There is no standard answer with rental vehicle coverage transferring. It is especially not easy because each state is different.

Tags: auto insurance

Reader’s Question:

If I pay my car insurance every month, does it help build my credit record in North Pinal, AZ?

Ben

North Pinal, AZ

Not exactly Ben. Typically auto insurance premiums are not paid on a loan contract, but rather directly to your insurance provider. You pay for future coverage and if you don’t make the payment, then you have no future coverage, therefore no credit is being given to the policyholder. In some cases, you may finance your car insurance through a premium finance contract but those contracts do not report to a credit bureau and again if you don’t pay the collateral (coverage) is cancelled.

If you have unpaid premiums or outstanding balances for coverage received then a carrier will try to collect. If they cannot collect they may forward to a collection agency. Those will negatively affect your credit report in North Pinal, AZ.

Building good credit is essential and paying your bills on time each month is a good way to start. Your credit report is something that the insurance provider will look at when you start a policy and is part of many insurance provider’s rating systems as well so it is essential to build and maintain a good credit history.

Tags: car insurance, credit report