Category: Auto Insurance

If you didn’t already know, Kansas is one of 48 states that requires auto insurance by law. Driving without auto insurance–even home from the dealership after first buying a car–is illegal.

If you’re tempted to drive without car insurance to skip out on the premiums and save yourself a little cash, or simply for the added convenience, think twice. Here are the penalties in Kansas if you get caught driving without auto insurance.

What auto insurance is required in Kansas?

When you purchase car insurance in Kansas, you’re actually buying six individual coverages. These are each designed to protect you against a different kind of loss.

Here are the six different types:

Bodily Injury Liability

This coverage helps pay for medical bills incurred by someone who you injured in an automobile accident. It includes rehabilitation, funeral costs, and other expenses. It also includes settlements of lawsuits/your legal expenses.

Property Damage Liability

This coverage helps pay for repair costs done to property you damaged in an automobile accident. It also includes settlements of lawsuits/your legal expenses.

Personal Injury Protection (PIP)

Also called no-fault, PIP pays for any rehabilitation, medical expenses, funeral expenses, lost wages, or in-home assistance that is needed for you or any passengers of yours who were injured or killed in a car accident. This applies regardless of fault, and passengers who own their own car may need to go through their insurance first before another person’s policy.

Uninsured/Underinsured Motorist Protection

This coverage helps pay for you or your passengers’ medical, rehab, or funeral bills in the event of an accident involving an underinsured or uninsured driver. It also covers hit-and-runs and can cover you and your family if you’re hit while walking or riding a bike.

Collision Coverage

Optional collision insurance covers your vehicle for collision-related damages, including collisions with stationary objects, like curbs and street posts.

Comprehensive Coverage

Optional comprehensive insurance covers your vehicle against non-collision damages, so fire, theft, vandalism, and similar may all be covered under your policy.

What are the penalties for driving without car insurance in Kansas?

If you are caught driving without the minimum level of coverage–(so the above coverages minus collision and comprehensive)–you could be fined. In fact, driving without car insurance in Kansas may constitute as a misdemeanor. You could have your license and registration suspended, or you could even face imprisonment. Here are the penalties you could face for driving without car insurance in Kansas:

• For a first offense, you could see a fine of $300-$1,000. You may face imprisonment of no more than six months, or a combination of a fine and imprisonment. Your license and registration will also be suspended until proof of insurance has been filed and you’ve paid the $100 fee to reinstate your documents.
• For a second offense, you could see a fine of $800-$2,500. You may face imprisonment of 90 days mandatory. Your license and registration will also be suspended until proof of insurance has been filed and you’ve paid the $100 fee to reinstate your documents.
• For a third offense or habitual violation, you could see a fine of $1,500-$2,500. You may face imprisonment of 90 days mandatory. Your license and registration will also be suspended for three years, and you’ll have to pay a $100 fee or $300 fee if your violation to reinstate your documents if your violation is within a year of the previous one.

What if I have insurance but don’t have it on me?

If you are caught unable to produce your proof of insurance, usually a physical document/i.e., pink slip, you may be considered guilty of an “administrative violation.” This is similar to a seat-belt ticket. You could have this citation dismissed if you can prove to a court of law within ten days that you have proof of valid insurance.

Driving without car insurance (not being insured at all) and being caught not having valid proof of insurance on your person when being pulled over are two different crimes. Just make sure you’re able to show proof of your insurance later on if you’re stuck in a sticky situation at first–otherwise you may be faced with similar consequences as you would if you were caught uninsured.

How does a lapse in insurance impact my future rates?

A lapse in insurance or “car insurance lapse” is any amount of time when your policy becomes inactive. A condition such as this can result in higher premiums and of course, fines if your policy is inactive during a period where you are still driving.

A lapse can also signal to a future insurer (or current insurer if you go back with who you were insured with previously) that you are a high-risk driver who is likelier to get into an accident than someone who remains consistently insured. Auto insurance companies will generally readjust your rates to reflect this higher-risk, meaning you could end up paying two or three times as much. Longer lapses may mean higher insurance rates.

And if you get into an accident during a lapse? You’ll be solely responsible for any of the damages, to yourself, your vehicle, and possibly even for the other driver/their injuries if you were at-fault. This can be massively expensive, with a price tag of tens of thousands of dollars. You’re probably better off paying your premiums, which overall would be much less than the larger cost of a loss. Plus, paying your premiums consistently won’t saddle you with a high-risk label for the next 3-6 years.

Need auto insurance, fast? Give us a call at AHI Group. We’d be happy to help you out and get you what you need, when you need it.

Auto thefts increased in frequency rather dramatically during the COVID-19 pandemic, jumping by almost 20% in 2020 and 2021. The National Insurance Crime Bureau (or NICB) has released statistics showing that these numbers are beginning to drop once more, but in certain areas of the country, they’re still rather inflated, causing serious ramifications to policyholder’s car insurance.

The current rate of auto theft in the U.S. amounts to two stolen every minute. While it has dropped in some states, such as Kansas, South Carolina, Arkansas, Oklahoma, Indiana, etc., rates for theft have increased in California, Texas, Washington, Florida, and Colorado. Here’s what’s going on.

Which states are considered designed hot spots for theft?

Regardless of where you live, taking precautionary measures to protect your car (such as not leaving it running, concealing your keys and not leaving them in your car, parking in well-lit areas, etc) is crucial. However, some areas have been identified as being more at risk than others. The list below (from Forbes) is comprised of different states in descending order with their theft rates per 100,000 residents:

1. Colorado (731)
2. District of Columbia (700)
3. Washington (603)
4. Oregon (541)
5. New Mexico (540)
6. California (520)
7. Missouri (483)
8. Nevada (481)
9. Texas (350)
10. Tennessee (337)
11. Minnesota (312)
12. Illinois (308)
13. Oklahoma (299)
14. Louisiana (297)
15. Arizona (295)

Which states are considered designed hot spots for theft?

Numerous factors contribute to why certain states may put you at higher risk of auto theft than others. For one, population density. Several of the states as designated on this list have some of the highest populations in the U.S. (California, Texas, Ilinois, etc.) and densely populated cities, which provide more opportunities for thieves to operate quickly and anonymously.

Another reason why these states may be considered hot spots for theft is economic conditions. Economic disparities can influence crime rates, including car theft. States with higher unemployment rates and economic instability often see a rise in criminal activity as individuals may turn to theft out of financial desperation.

Border proximity, law enforcement resources (or lack thereof), socio-political factor, and the availability of high-value vehicles all tend to factor into why certain states may see more auto theft than others. Usually, a combination of these factors may contribute to a state landing itself on the “hot spot” list. However, no state’s citizens are immune to auto theft.

Which cars are most at risk for auto theft?

It varies by state, city, and insurance company, however generally older “high-volume” (aka number of insureds on the road) are taken more often than your luxury/new vehicles since they’re most often taken to be sold individually as parts. They’re usually driven away or towed where they can be stripped down into components and then sold off to repair shops and over the Internet. Sometimes even overseas!

Electric cars tend not to be the target of theft for one reason: a lacking of charging infrastructure in overseas countries. There isn’t much demand for their parts as there aren’t many electric-powered vehicles in the countries these parts are being sold to, so as a result they can be less at-risk for theft. Still, they’re not entirely immune, and vehicles can still be stolen for any number of purposes!

Why your rates could be impacted if you live in theft hot spots

Living in a high-risk area for car theft can significantly impact your auto insurance rates, even if you haven’t personally experienced theft. Insurance companies base their premiums on the likelihood of claims being filed, and residing in a theft hot spot increases this risk. Your rates could be higher for any of the following reasons:

• You’re now an increased risk for insurers. Living in a neighborhood with a high incidence of car theft puts you at an increased risk of your insurer having to pay out for stolen vehicles. This increased risk is reflected in higher premiums to offset potential future losses.
• Historical data and trends show a higher incidence of future losses. Areas with a history of high car theft rates are considered more dangerous, and this statistical analysis influences the calculation of your insurance rates. Even if your car has never been stolen, the past data from your area plays a significant role in determining your premiums.
• The cost of claims is higher in your area. Insurers factor in not just the value of the stolen vehicle but also administrative costs, investigations, and potential legal fees. Higher claims frequency in theft hot spots drives up these costs, leading insurers to charge more to cover these expenses.
• You may be asked to invest in security measures. Insurers might require or recommend additional security measures for your vehicle, such as alarms, GPS tracking, or immobilizers. These added precautions can reduce the risk but also increase the overall cost of insuring your car, as its total replacement value has now increased. However, some insurers will discount your insurance for these devices, which can combat the overall increase.

In essence, living in these “hot spots” can result in higher insurance premiums – even if you yourself have not made an insurance claim! Having a better grasp on these factors may permit you to navigate your insurance options better so you can find ways to lower your rates.

Have additional questions? Our agents at AHI Group will be more than happy to help out. Request a quote or, better yet, give us a call and ask us directly.

Classic cars are beloved by the car community, with around 43 million cars in the United States fitting the definition of “collector” or classic vehicle. The combined value of those collector cars is estimated to exceed $1 trillion in insurable value.

What exactly is a classic or collector car? How does one define classic for both registration and insurance purposes? Let’s get into it.

What old does a car have to be to be considered a classic?

There are several ways to truly define a classic car, and those can differ immensely. America’s Classic Car Club defines classic as a vehicle that is distinctive or fine and generally built between the years of 1915 and 1948. That being said, to register a classic car you would need to adhere to state law. With most states, cars of that age are considered vintage or antique automobiles. Make sure to check with your own state’s specific automobile guidelines.

From an insurance perspective, the age of a classic car must be at least 20 years old but not more than 40. In order to have it insured and registered as a classic, your vehicle must not be modified and kept to its original design/specifications. Any restoration done must be consistent with the way the car was built originally, meaning that it needs to include the kinds of materials used in the interior and all the kinds of parts used in the engine. No “modern” applications, so no built-in nav system or audio player.

Is it expensive to insure a classic car?

You may be surprised to learn this, but classic car insurance is traditionally less expensive than typical automobiles. This is because classic cars have restrictions on how long/far they can be driven and how often, and some insurers or states only allow classic cars to be driven and used at events like car club meetings, parades, or car shows. They cannot be used for daily transportation.

If a car spends more time in the garage than out and about, there’s less risk of it getting into an accident or experiencing other damage. Rates will be lower, but this doesn’t mean that these cars should be without insurance. Firstly, it’s illegal in most states to drive without auto insurance, and even though classic cars are only driven sporadically, it’s still enough that they need to adhere to automobile regulations. A ticket could cost you more than the car would cost to insure for one whole year.

However, there are instances where you won’t always pay less to insure a classic. Classic cars, unlike regular automobiles, become more valuable with age. Any other new car will start depreciating the second it leaves the dealership, but classic cars, after a certain point, begin to appreciate. If they are well-maintained, their replacement cost will be much higher than it is for new cars.

Like any other car, the cost to insure a classic car varies by location, driving record, car usage, and more. Working with an agent is the best way to get affordable car insurance.

Why do classic cars need special insurance?

Classic or collector cars are not only valuable but also require specialized care and maintenance. Because of their distinct characteristics and needs, classic cars require special insurance coverage that differs significantly from standard auto insurance.

As mentioned above, the value of a classic car is often significantly higher than that of a standard vehicle and it appreciates with time. Special insurance policies typically offer “agreed value” coverage, which means the insurer and the car owner agree on the car’s value at the time the policy is written. This ensures that in the event of a total loss, the owner will receive the full agreed-upon amount, rather than a depreciated value.

Classic cars are also not used as primary vehicles or driven regularly and are used solely for special occasions. Classic car insurance takes this into account, offering policies tailored to limited usage. This can result in lower premiums compared to regular auto insurance, which assumes daily use and are much higher mileage than classic/collector cars.

There is also special consideration when insuring classic cars due to the uniqueness of their repairs. Repairing a classic or collector vehicle often requires specialized knowledge and skills, as well as rare/custom-made parts. Standard auto insurance may not cover the costs associated with these specialized repairs. Classic car insurance policies often include provisions for using original parts and cover the higher costs associated with maintaining and restoring classic vehicles.

Liability insurance often comes with additional implications. Classic cars often draw attention and can attract larger crowds at events. This increased exposure can raise the risk of accidents or incidents involving the car. Special insurance policies for classic cars often come with higher liability limits to provide additional protection in case of any damage or injury claims.

How do I get insurance for a classic car?

Working with an agent is one of the best ways to get affordable insurance for your classic car. Not only will an agent be able to help you find an insurance policy that meets the needs of your exact classic car, but they’ll also be able to find you a great price! Call AHI Group at 913-839-1478 for a free quote.

We’ve all occasionally driven other people’s cars, whether because ours was in the shop awaiting repairs or because we’re visiting another state or even country. You might not have thought too much about it. After all, you have insurance. Isn’t that good enough? But does auto insurance follow the car, or does it follow the person?

In a nutshell: car insurance coverage technically follows the car and not the person, but there are exceptions to this rule, including the state where you live, who’s listed as a driver on your policy, and the kind of endorsements you have.

Is there such a thing as “driver insurance?”

You can be listed on others’ insurance policies as an occasional driver, but there’s technically no such thing as driver insurance. There is also non-owner car insurance for those who don’t own vehicles at all but may regularly borrow/rent them, which can help to satisfy a SR-22 (or FR-44) form. You may also be able to purchase endorsements that will cover you while using rental vehicles or borrowing friends’ vehicles, but that’s limited in duration and applies situationally. Adding endorsements will also increase your car insurance premiums.

Friends and extended family members who don’t have vehicles but might want to take your vehicle out for a spin sporadically can be covered under your policy, but we recommend informing your agent or insurer of this first. They are unlikely to be covered if they were to get into an accident unless they’re included in your policy’s terms, but be mindful of the fact that their actions may impact your insurance.

What is non-owner car insurance?

If you don’t own a car but frequently need to rent cars or borrow the cars of others, you can purchase a liability policy separately known as non-owner car insurance. It’s also helpful if you ever need to show proof of car insurance.

Non-owned car insurance, depending on the state, can include liability coverage as well as other required options, like uninsured motorist or medical payments coverage. Each state has its own requirements for minimum auto insurance (except for the few states that don’t require insurance), and each car must be insured adequately to satisfy the law. The primary focus of non-owned coverage is on liability insurance.

Only one person may be listed on a non-owner car insurance policy. Some companies will apply coverage to a spouse, but many don’t include this option.

Non-owner car insurance offers coverage if you get into an accident in a borrowed vehicle and helps to pay for the damages/injuries of others via the liability coverage provided by the policy. Keep in mind that non-owner car insurance is secondary to any existing coverage on the policy, so if you got into an accident with a friend’s car while having this insurance, and that friend had bodily injury limits of $15,000 but the accident capped out at $30,000 in medical bills, there’d be an outstanding $15,000 to pay. Non-owner car insurance could help cover the remaining amount. In short, non-owner car insurance covers:

• Bodily injury and medical expenses caused while driving a vehicle owned by someone else
• Property damages caused while driving a vehicle owned by someone else
• Legal defense if you are sued for causing an accident in a car owned by someone else

Non-owned car insurance won’t cover damages to the car you’re driving, any injuries you sustain, any injuries sustained by other passengers, business driving, or personal belongings. In fact, that car won’t be covered at all for physical damages unless the registered owner already has a full coverage car policy; non-owned car insurance shouldn’t be depended on to provide protection that doesn’t already exist with the vehicle’s main policy.

Who needs non-owned car insurance?

Here are some reasons why someone might choose to purchase non-owned car insurance:

• You frequently use car-sharing services. Companies that offer these services, like Zipcar, usually have their own insurance but non-owned car insurance may help in extending the otherwise limited options that the companies provide.
• You want to avoid having a gap in your car insurance.
• You frequently rent vehicles while abroad or travelling, or just in general.
• You’re faced with a state law to file an SR-22 or FR-44 form (which requires you to show proof of car insurance if you’ve ever had a DUI conviction, been caught driving without insurance, license suspension or revocation, etc.) This way you can get auto insurance and show proof of insurance without needing to own a car.

Will my auto insurance cover me if I’m driving another vehicle?

This goes back to the question of, “does auto insurance follow the car or the person?” The short answer is technically no, but if you are listed on the policy of that other vehicle, then you would be covered. It wouldn’t be your auto insurance per se, but you would be covered.

With some insurers, they’ll accept others driving your car as “being covered” assuming that there’s a reasonable belief that you’d have had permission to drive the car. This goes for a lot of situations, such as the following:

• Borrowing a family member’s car while yours is in the shop for repairs
• Driving the vehicle of a parent with permission, assuming you haven’t been excluded from their car insurance policy
• Renting a car from a car rental company or car-sharing marketplace (with some exceptions)

With the above scenarios, your full insurance may not extend to these borrowed/rented vehicles. Generally, all you’ll have is liability coverage, but your comprehensive/collision coverage likely won’t apply. With certain car rental companies or agencies, you’ll often be asked to purchase the insurance that they offer to ensure that their asset and investment is fully protected.

Get unique coverage solutions with AHI Group

Don’t own a car but drive and rent others’ cars often? Own your own car but frequently use rentals when you travel? Lend your car to a friend? Whatever your unique situation is, AHI is happy to discuss your coverage needs with you and find a policy suited to how you drive. Give us a call today.