Insurance: When To Keep, When To Skip

Whether or not you have to carry insurance depends on the type of insurance in question. In the US, drivers are legally required to have automobile liability insurance and, in most states, must carry proof of this insurance when driving. However, there are no dedicated laws requiring individuals to carry their health insurance card on their person, although it is recommended to do so when going to the doctor's office. If you have a car that is not being driven and is in storage, you are also not legally required to carry insurance, but it is recommended to protect yourself from potential expenses.

Do I need insurance for a car in storage?

While it is not a legal requirement to have insurance coverage for a car that is not being driven and is in storage, it is still recommended that you keep your car insured. This is because, in the event that your vehicle is stolen, vandalised, or damaged in an accident or weather-related event, you will be responsible for any resulting expenses if you don't carry insurance.

Comprehensive coverage can protect your vehicle from theft, weather events, and more while it's in storage. This is the only type of insurance coverage you need if you won't be using your vehicle for a long time. It covers any event that can damage your car while it's sitting still, such as theft, vandalism, building collapse, and fire.

If you decide to reduce coverage for a car in storage, make sure you remember to revert to your previous policy when you need to drive the vehicle again. Cancelling your car insurance coverage can mean insurance companies may view your lapse in insurance as a risk, causing an increase in your rates when you decide to get coverage back in place.

If you are storing your car, you may be able to reduce your coverage to just comprehensive coverage, which would cover any damage that happens while your car isn't being driven. This is sometimes referred to as "car storage insurance" or "parked car insurance".

Do I need to carry my health insurance card?

Whether or not to carry a physical health insurance card is a matter of personal preference. It is not mandatory to carry a physical copy of your health insurance card, but doing so can make receiving care easier in some situations.

Advantages of carrying a physical health insurance card:

• Having your insurance card with you is the surest way to make a medical treatment go smoothly with easy access to your information.
• If you need to call your insurance company, having your card allows you to do so from anywhere, as most insurance cards list the phone number on the back.
• In some situations, if you don't have your health card, you may have to pay the entire medical bill and then request reimbursement from your insurance company. Your card typically notes the level of benefits you have, so it is important to have it on hand to provide accurate information about the costs of care to your doctor.

Disadvantages of carrying a physical health insurance card:

• Carrying your health insurance card increases your risk of identity theft. If your insurance card is stolen, it provides the thief with opportunities to use your information to visit a doctor, fill a prescription, purchase medical equipment, or file false claims in your name.
• Not only is your insurance card an avenue for medical identity fraud, but it also opens you up to other types of identity theft. Your insurance card may list the names of your family members, your employer, and your full name, which can be used to steal your identity.

Alternatives to carrying a physical health insurance card:

• Many insurance companies now offer digital versions of insurance cards that can be accessed through a mobile app or online.
• You can carry your insurance card only when needed, such as when going to a doctor's appointment.
• Make a photocopy of your insurance card and keep it in a secure place at home. If you lose your card, you can use the copy to notify your insurance company so they can be on the lookout for fraudulent activity.
• Most doctors and healthcare providers will accept a picture of your health insurance card, usually through your insurance company's mobile app.

Ultimately, the decision of whether or not to carry a physical health insurance card is up to you. Consider the advantages and disadvantages of each option and choose the one that best suits your needs and preferences.

What are the penalties for driving without insurance?

Driving without insurance in Georgia is considered a misdemeanor and can result in serious penalties, including fines, jail time, and the loss of driving privileges. Here is an overview of the penalties for driving without insurance:

First Offense

If you are caught driving without insurance in Georgia, you will be given 30 days to provide proof of new insurance. If you can verify coverage within this period, there will be no penalties. However, if you had a short lapse in coverage of 10 days or less, you will be required to pay a $25 lapse fee. Failure to pay this fee within 30 days will result in a suspended registration, and you will have to pay a $60 reinstatement fee to get your registration back.

Second Offense

For a second offense within five years, your license and registration will be suspended for 90 days. You will need to provide proof of insurance for at least a six-month minimum policy to regain your driving privileges. Additionally, you will have to pay a $25 lapse fee and a $60 reinstatement fee. You may also face up to a year in jail, depending on the circumstances.

Third and Subsequent Offenses

For a third offense within five years, your license and registration will be suspended for six months. You will be required to pay a $25 lapse fee and a $160 reinstatement fee. To get your license and registration back, you must provide proof of insurance for at least the minimum required coverage for six months. You may also be sentenced to up to 12 months in jail. Additional penalties may apply if you are convicted of driving a suspended vehicle.

Fines and Jail Time

For a first offense, you may be charged with a misdemeanor, resulting in a fine of up to $1,000 and/or up to 12 months in jail. The severity of the penalties increases with subsequent offenses.

Civil Lawsuit

In addition to criminal penalties, if you are involved in an accident while uninsured, you may face a civil lawsuit. This could result in the forfeiture of your home and savings. Furthermore, if you are unable to pay for the damages to the other person's vehicle, your license will likely be suspended.

What is the minimum auto insurance coverage?

The minimum amount of auto insurance coverage you need to buy varies by state. But no matter where you live, liability car insurance—which covers damage and injuries you cause to others in an accident—is the main required coverage.

• California: $15,000 for bodily injury to one person, $30,000 for bodily injury to multiple people in a single car accident, and $5,000 for property damage (written as 15/30/5).
• New York: $25,000 per person and $50,000 per accident for bodily injury, and $10,000 for property damage (written as 25/50/10).
• New York is also a No-Fault state, which means drivers are required to have Personal Injury Protection (PIP) that provides medical coverage for the driver and their passengers if there’s an accident, no matter who was at fault.

State minimums are usually inadequate and won't cover your car's repair bills. If you want better coverage, you'll need to buy more than the minimum requirements.

In addition to liability insurance, some states also require car owners to carry one or more of the following types of auto insurance:

• Uninsured motorist insurance
• Personal injury protection (PIP)
• Medical payments coverage (MedPay)

If you finance or lease your vehicle, you may also be required to carry collision and comprehensive coverage.

What is the difference between certificate and evidence of insurance?

While you may not be legally required to carry insurance in some cases, such as for a car that is not being driven and is in storage, insurance can provide valuable protection against various risks. Now, when it comes to differentiating between a certificate of insurance and evidence of insurance, these are both types of proof of insurance used in different contexts.

A certificate of insurance (COI) is a document issued by an insurance company or broker that verifies the existence of an insurance policy. It is not a legal contract but serves as proof that an individual or entity is covered by an insurance policy. COIs are typically requested by clients or third parties to confirm that a business owner, contractor, or another entity has the necessary insurance coverage. This protects the client from assuming any risk if the contractor or provider is responsible for damage, injury, or substandard work. The COI includes essential details such as the policyholder's name, policy effective date, type of coverage, policy limits, and contact information for the policyholder and insurer.

On the other hand, evidence of insurance is used to demonstrate the types of first-party coverages an individual or entity has. First-party coverages protect the insured from losses resulting from injuries to themselves and damage to their belongings and property. For instance, if a community clubhouse sustains fire damage, first-party insurance coverage would be used to cover the expenses. Residential and small commercial properties typically use an insurance form called ACORD 27 for evidence of insurance, while large commercial properties use the ACORD 28 form.

In summary, the primary distinction between a certificate of insurance and evidence of insurance lies in their purpose: the former provides proof of insurance coverage to third parties, particularly in business contexts, while the latter demonstrates the types of first-party coverages held by an individual or entity.

Frequently asked questions