Transcript Auto Insurance Don’t Drive without Insurance! Driving without insurance is a risky proposition.

Auto
Insurance
Don’t Drive
without
Insurance!
Driving without insurance is a risky proposition. Although
it might save you money in the short run, the potential
long-term consequences make these savings not worth
the risk. For one, you could face serious legal
repercussions for driving without insurance. But legal
woes are probably the least of your worries. If you are
uninsured and are in an accident that is your fault, you
will be financially responsible for paying for the damages
and injuries of the parties involved. Unless you’re
independently wealthy, that means one minor fender
bender could jeopardize your assets and put you on the
brink of bankruptcy.
Driving without insurance is dangerous and expensive.
Legal Issues
Most states require that you carry minimum
levels of liability coverage. If you are caught
driving without the mandatory levels of
insurance, you could face an array of unpleasant
consequences. In some states, your vehicle tags
may be revoked and the car impounded. Other
states charge uninsured drivers heavy fines,
usually ranging from $150-$500. You might also
have your license revoked for a certain period of
time if you fail to provide proof of insurance.
Financial Responsibility
Though not every state requires you to carry liability
insurance, all states do have at least a financial
responsibility law. Those states with financial
responsibility laws do not require drivers to have liability
coverage with an insurance company, but they do require
that all drivers prove that they are financially able to
cover their liability in the event of an accident. In these
states, any of the following items qualifies as proof of
financial responsibility:
• Self-insurance certification
• Certificates of deposit
• Surety bonds
Lapses in Coverage Mean High
Premiums
If you’re driving without insurance, you will have
lapses in coverage on your record. That means
that if you ever apply for an auto insurance
policy, your prospective insurer will find this out.
To insurers, lapses in coverage are red flags for
high-risk drivers. Any lapse in coverage, no
matter how short, could result in sky-high
premiums or your insurance application being
denied.
Simple Ways to
Lower Your Auto
Insurance
Premiums
Auto insurance can be a very expensive
necessity. A good policy can cost you anywhere
from a few hundred to a few thousand dollars a
year. This can be quite the strain on your budget
if you are overpaying for your auto insurance. To
reduce this strain, we’ve compiled ten simple
tips to help you lower your auto insurance
premiums by as much as 40%.
Here’s what you can do:
1. Shop around. It is always a good idea to
compare many different policies when you are
shopping for auto insurance. Most experts
recommend that you get at least two or three
quotes on policies before committing to one.
This will help you find the best deal.
2. Increase your deductibles. As a general rule, the
higher your deductibles are, the lower your
premiums will be. This is because you are
assuming more financial risk with higher
deductibles, so the insurance company is able to
offer you reduced premiums. However, keep in
mind that higher deductibles mean higher outof-pocket costs if you are in an accident.
3. Eliminate certain coverage's from your policy. Not
all auto insurance coverage's are absolutely
necessary. You want to keep coverage's like bodily
injury liability and property damage liability, as
these are required by law. Coverage's that you
might eliminate include collision, comprehensive,
medical payments, and uninsured motorist.
4. Drop collision & comprehensive for older cars. If
you drive an older car with little to no cash value,
collision and comprehensive coverage will do you
no good. The insurance company will only
reimburse you for damages up to the cash value of
the vehicle.
5. Keep your credit report looking good. Your
credit report is one factor that influences
your premiums. By paying your bills on time
and maintaining a good credit history, you
can keep your insurance rates low.
6. Drive less. Most insurers offer low-mileage
discounts to policyholders who drive less
than a certain number of miles per year. You
can use the bus, carpool with friends, or take
a plane when driving to another state to save
on mileage.
7. Keep your driving record clean. You will enjoy a
significant discount if you do not have any
moving violations within a certain period of
time. Try to avoid accidents, speeding tickets,
etc. by driving defensively at all times.
8. Select a low-profile car. Sports cars and high
performance vehicles will cost more to insure
because they are a higher theft risk and the
drivers of these vehicles are more likely to be
reckless. Large vehicles and new cars also cost
more to insure. Low-profile cars include
relatively small, safe sedans.
9. Look into safety & security discounts. You
may qualify for certain discounts if your car is
equipped with the following safety features:
air bags, anti-lock brakes, automatic seat
belts, tracking systems, car alarms, etc.
10.Ask about other discounts. Insurers offer a
plethora of discounts, but you usually have to
ask about them first. Ask your agent about
discounts for which you might be eligible.
How Marriage
Affects Car
Insurance
Taking the big plunge will radically alter your life, and
your car insurance policy is no exception. Once you
get married, you will need to change your coverage
so both of your policies are from the same company.
If you both already have policies from the same
insurer, then you should contact your agent about
purchasing a single policy together. After you get
these logistical issues squared away, there is good
news: getting married almost always saves you
money on your car insurance. Statistical data indicate
that married people are less of a claims risk than their
single counterparts, and, as a married man or
woman, you will reap the rewards—lower premiums.
In this post, we’ll give you some basic information
about marriage and car insurance and explain how to
go about merging your policies.
Marriage & Auto Insurance
Here is some helpful information about marriage
and car insurance:
– Car insurance rates usually drop for men (and
sometimes women) under the age of 25 when they
get married
– You can save money and simplify your life by
consolidating all of the insurance policies in your new
household
– As a married couple, you may qualify for several
discounts, including the multiple-vehicle and multiplepolicy discount
Test your driving knowledge!
http://moneycentral.msn.com/
quiz/driving-skills-quiz/home.aspx