Car Insurance coverage is legally an unavoidable plight for most car owners and drivers. In the USA, all road-going vehicles must have auto insurance to safeguard against accidents or other financial exposures. However, it comes at a cost not everyone can afford.
Many drivers avoid buying car insurance or filing minor or even major claims after an accident. The scenario can be broadly explained as follows – due to high insurance costs, 1 out of 8 motorists choose to drive uninsured, and many even consider canceling their car insurance in order to afford other expenses. Moreover, with fluctuating economic conditions, people are trying to keep their costs as low as possible.
It is essential to get the proper insurance before you get behind the wheel for the first time. Having auto insurance ensures that you are covered for any kind of damage. Investing in a car is a huge deal for many. It is essential that you protect your investment with the right insurance.
Look for Insurance along with the Car
If you are looking for your first car, it is a good idea to start looking for insurance simultaneously. New drivers will typically pay the highest fees to insure their cars, and this usually makes it unaffordable to insure certain cars at all. This means if you are searching for your ideal first car to drive, you should look for it in tandem with searching for insurance policies. The last thing you want to do is to buy a car and then discover you cannot afford to insure it.
Even When your car is Off-the-Road
Indeed, even if you own a car that you aren’t currently driving, you will still need to get it insured unless you have what is called a Statutory Off Road Notification. This is known as a SORN, and the idea is that it covers vehicles that are kept in a garage or other location off road, and thus do not need to be insured. You must make the notification though – if you keep your vehicle off-road and you don’t notify the authorities, you could receive a fine. Thus you should always make sure you go through the proper process. If you decide to get the car out and start driving again, it is time to get insurance.
When you Are Remodeling your car
Another example of a time when you need to think about insurance is if you already own a car and you are looking to do a lot of work on it. If you are going to radically change how the car looks, you will be changing its value too. This could in turn, have a knock-on effect on your car insurance UK policy, so if you want to style your car you should look into the insurance possibilities prior to doing so.
When you Need Peace of Mind
Accidents happen and it is not going to your fault all the time. Sometimes, the other person’s mistake can become your liability. Insurance coverage will ensure that you can afford to repair or replace parts of it without going broke. For peace of mind, you must get auto insurance coverage. For many people, buying a car can be one of the biggest investments of their life. So, it is important to protect that investment with the right insurance coverage. Get insurance and rest assured that you will be compensated should anything happen to your car.
Save Time and Money
As you know accidents can happen and your mind end up being the guilty party. The fall-out of an accident can mean you paying up compensation. With an insurance coverage you can ensure timely settlement of the matter. The insurance will also cover cost of the repair and replacement, which means you will not be left out to dry. With the right insurance coverage you can save a lot of time and hassle.
How to Choose the right car Insurance
There are so many car insurance companies and choosing the right one is not that easy. When looking for car insurance, you need to make sure that you choose the company that offers the kind of coverage you want. The insurance provider needs to have experience, reputation and affordable schemes to match your budget. Do a little research online and look for online reviews to see what the other clients are saying about the company.
Listed below are some of the things you can do to lower your auto insurance cost
There are several alternative options for low-income drivers and owners who are just trying to make ends meet. Insurance Trak offers the widest selection of auto insurance programs at greatly discounted prices to help people from hitting the road uninsured. We have many useful suggestions consumers can use to make their insurance premium more affordable.
Check the market value of your car against the amount you are insured for – Ask your insurer to adjust the premium cost in accordance with the market value of the car to account for depreciation.
Choose a higher Deductible – Being willing to pay a higher deductible reduces your monthly premium. But, keep in mind the repair cost of an accident or any physical damage can be very high and costly.
Installing safety equipment – Get your car a new tracking device or alarm system. This will improve your car’s security, and may get you a discount on your policy. Once the tracking device is installed, inform your insurer and request a revised quote.
Have a good driving record – Driving records count for a policyholder. Drivers who are younger and have less driving experience will be charged insurance fees. Get a certified driving training course to build your driving record.
Do not make claims too often – Auto insurance claims, if made too often, will result in higher premiums. Claiming minor damage on your policy will drive up your premiums.
Keep your details updated – If you have moved to a different location in the same state, update your personal details within 24 hours. This may assist you in dropping your insurance premiums.
Choose your car wisely – In general, buying a high-performance car means greater risk to the driver and the car. So, high-performance cars call for higher premiums and more coverage.
Compare Insurance Quotes – Car insurance premium costs vary from company to company, so it pays to shop around.
Combine your household and car insurance together – A joint insurance policy of your home and car insurance can offer many benefits. You may have lower monthly premiums and maximum insurance coverage. Buy your homeowners and car insurance from the same insurer.
Maintain continuous car insurance history – Too much disruption in your car insurance history might increase your premiums. Maintaining continuous auto insurance coverage may help lower your costs over time.
The key to saving money is now in your hands!
How to Get Low Auto Insurance Quotes with Bad Driving Records
Recent studies show that vehicle insurance rates are still reasonable across the USA and actually going down in California. There are even studies suggesting that auto insurers should increase their rates because they are not making enough money. It is fair to say that you would enjoy these great low rates if you are a good driver. On the other hand, motorists with less than a perfect driving history may struggle to find affordable premiums.
What Makes You a Bad Driver?
Automobile insurers can offer great deals, but they can be very picky as to whom they offer these special deals. Some companies may be lenient towards established drivers after one traffic violation ticket or small claim. For example, you may only see a slight increase in your premium if you had one speeding ticket or fender bender in the last ten years.
However, you would probably see a significant premium hike if you have had more than one ticket or incident in the last three years. They may be for minor violations or a couple of fender benders. But the number and frequency of the incidents will be enough to put you in the high-risk driver category. Those incidents are pieces of evidence that your driving has been slipping down lately, and the chance of you causing a big accident is now high.
In addition, you can go straight into the highest-risk drivers group if you get caught driving under the influence of alcohol or other substances. Being charged with reckless driving can have similar effects as well.
How Can You Still Find Reasonable Rates with Bad Driving History?
Experts at DUI Law Office explain that DUI charges are considered a criminal offence and can limit your eligibility for driving at all. Here are some of the tips to help you reduce the premium when you are facing increased costs due to driving records.
#1 You Can Still Qualify for Other Discounts
Luckily companies look at a few other factors when they are pricing the premium. Each discount works independently from the other; failing to qualify for one doesn’t prevent you from claiming the other. You can still claim discounts for having a great credit score, being a member of AAA (or other recovery service providers), being a member of an association that qualifies for discounts with some companies, having a private parking facility, being married, and living in a safe zip code. Those discounts will reduce the burden a bit. Actually, a great credit score can qualify you for 20% discounts with some companies.
#2 Going for a Safer Car
If you are considering changing your automobile, this may be a good time to pick a safer and insurance-friendly car. Vehicles insured are one of the most influential factors on premiums. Most insurers don’t like sports cars with large engines or ones with bad safety records. You will have to pay a lot of money for car insurance when you have a high-risk car and a bad driving record.
#3 Telematics Auto Insurance
Pay As You Go policies can be a great way of lowering your premium when you are young or considered high risk. A little device is fitted on your auto that transmits information about your driving to the insurer. If you make a few improvements on your driving, you could get large savings from the next renewal. And most companies offering these policies give immediate discounts for choosing to agree to be monitored.
#4 Shopping Around
Getting a high quote from one insurer should not discourage you. You should get a few quotes since each company will price the risks differently. A large company may have the luxury of demanding three times the normal premiums when they come across a bad driver. But not all companies have the luxury of turning away applicants. They may be keener to offer better rates.
Technology to Improve Your Car Insurance?
Advances in technology are making almost every aspect of our lives easier than before. For example, you can do all your banking online, watch your favorite television shows anytime, and order groceries to be delivered right to your door. You might not think about it often, but technology can also change how you approach your car insurance.
If you’re concerned about the amount you’re paying for your insurance coverage, new technology could be the key to unlocking a greater discount on your premium. Many insurers now offer Usage-Based Insurance (UBI) plans, which ask drivers to install a telematics device to track their driving habits. These devices can record information about your acceleration, braking, and distance driving and then relay that data to your insurance provider so they can get a clear picture of your driving habits. In return, you could be eligible for a lower premium. Many companies offer a discount just for signing up for UBI, and up to 30 percent in savings when it’s time for renewal. In addition, studies have shown that UBI can change your driving habits for the better.
Of course, providing this type of information to a large company could raise some privacy concerns, so the Financial Services Commission of Ontario lays out the rules that protect drivers who sign up for UBI. Based on these guidelines, any information collected by your insurance company cannot be shared with a third party without your express consent. In addition, the information cannot be used to increase your premium, only to set a discount, review rating criteria, detect and prevent fraud, and manage claims. That being said, data from your telematics device could be used as evidence against you in a claim if it reveals that you were speeding or braking suddenly before an accident.
If you are concerned about claiming your insurance company, a dash cam is another way to use technology to your advantage. Dash cams can record your journey and events when your vehicle is parked. This means that your dash cam can provide footage of a car that hit you or catch a vehicle’s license plate unlawfully leaving the scene if you need proof to submit a claim. Like UBI, dash cam footage only works in your favor if you do not have any fault in a collision. Otherwise, you’re dash cam could prove a case against you.
Each year before its time to renew your insurance, you should be comparing quotes between providers. A lot can change in a year – both with premiums and your life situation – so the great deal you got last year might not be your best option anymore. Technology also makes it easy to compare car insurance quotes online. When doing your research this year, consider how UBI could lower your premium, and ask your chosen insurer if having a dashcam would benefit the claims processes.
The Bottom-Line
As you can see it is always wise to consider all the angles when looking for the right insurance policy for your own vehicle. Make sure to choose the right auto insurance company that offers a great deal and is reliable. No matter what type of vehicle you have, the right insurance coverage is very important for protecting your investment from all sorts of damage.