Wednesday, August 3, 2011

Auto Insurance for 17 years old

Getting Auto Insurance for a 17 year old depends upon laws being practiced in different states. In most states and countries 17 year old is allowed to drive but according to insurance companies 17 years old can not enter in to a insurance contract. I f a 17 years old want insurance it must be with permission of parents and parents must sign contract to validate it. Insurance costs depends on company to company.It is expected that Insurance premium and costs would be very high for a 17 years old.

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Auto Insurance Payments and Claim Receipts tax issues

while getting Claim settlement receipts from Auto Insurance companies is whether what amount they are receiving is taxable or non taxable. Auto insurance claim settlement payments are non taxable. You can get settlements from insurance provider in forms of,1) Repairing or replacing your car, 2) Medical expenses if you need medical treatment or rehabilitation treatment due to a car-related injury, 3) Replacement services (housekeeping, child care, elderly care). This is for things you used to do but cannot do now due to your injury.
Car Insurance payments are not taxable because they are compensation for your loss and intended to retrieve back your previous financial position not as a addition in your financial standings. Insurance claim settlement payments are not income so there is no tax payment on them. These claims settlements are generally not taxable, you should report what you receive to the IRS. You just need to report your claims payment as income.

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