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Tips and Tricks About Purchasing Auto Insurance
When shopping for an auto insurance quote get at least three different quotes because rates can vary significantly from company to company. If you've been driving without auto insurance some insurance companies may be wary to insure you. If this is the case don't be surprised if you have to pay a more for insurance than someone who has a good car insurance history and clean driving record. Again, it's wise to get auto insurance quotes from a few different companies.
The Internet allows us now to get insurance quotes online to find the cheapest quote but be careful about selecting a company based solely on that quote. A lot of "bait and switch" advertising, unfortunately, finds its way on the web ... so you have to be especially cautious on the web to read all the fine print and disclaimers.
With car insurance playing such a crucial role in our lives, because you never know when you are going to be in an accident, it's important that you get auto insurance now if you do not have it.
Here are come consideration points when getting a car insurance quote.
Remember it is just a quote! A quote is rarely the exact amount that you are going to be paying, or billed, after you sign up. Obviously you'll want to compare the quotes you get to decide which company is going to be the most affordable--but don't sign on with an insurance company based solely off a quote. It also helps to find an agent you really like, who is there for you if you need help, and responds back to your questions and inquiries.
Read the insurance policy carefully (including the fine print!).
Although a car insurance quote is an estimate of what the company is going to be charging you it is important to complete the forms accurately. The quote is only meaningful if you provide accurate and up-to-date information.
Changing-Switching Auto Insurance Companies
It is common practice for most insurance companies to allow for policy cancellation at any time during the policy term by sending written notice simply notifying them of the date of cancellation. This does not mean that your car insurance policy is necessarily over at the end of each policy term so don't assume that you can cancel by not paying your next bill. If you fail to provide written notice of your intent to cancel your policy your insurance company will automatically bill you in advance for the next term's payment. Failure to pay your policy premium will terminate your policy but it will in most instances also go on your credit report.
You can terminate your auto insurance policy for many number of reasons. Just be sure to give your current insurer fair and reasonable notice or it could end up costing you money or in a conflicting situation potentially negatively affect your credit history. Moving to another state, dumping or getting rid of your vehicle, or simply informing your existing insurer you are not happy with their level of service is sufficient reason to cancel your policy. To some, having a close working relationship with your insurance agent is and important consideration ... getting your answers and phone calls returned quickly, as noted above, plays when deciding which new insurance company to choose.
It is very important to have a "seamless" transfer of coverage. Allowing your car insurance policy to be canceled may adversely affect your ability to get auto coverage or get the "best insurance package" in the future. Some insurance companies will consider you a high-risk applicant, thus charging you a higher premium, if you have a lapse of coverage -- so avoid this trap by officially terminating your policy in writing, and in a timely manner. All you need to do is call your insurer and inform them you want to cancel your policy and stipulate to them an effective end date. Your insurer will send you a cancellation request form by email, fax, or mail. Be sure to review the form carefully before you sign and return it to your insurance company contact.
If switching to another insurer be sure to coordinate the effective starting date of your new policy with the termination date of your old policy. You do not want to get in an accident during any uninsured interim. Even one day without insurance is not worth the risk so go through the official termination process to avoid any problems.
INSURANCE ISSUES
Hopefully you have done your due diligence in finding a good auto insurance company? Unfortunately, roughly 15% of American cars on the road do not any type of insurance coverage. In California, about 3 in 10 drivers are either without insurance or underinsured. Reasons vary as to why they the have no car insurance. Some believe it is not necessary and other simply say they can't afford it. Regardless of "their reason" getting involved in an accident with an uninsured motorist poses some additional problems. Getting Uninsured Motorist Coverage can protect yourself financially from these drivers without adequate auto insurance.
What is Uninsured Motorist Coverage?
Uninsured (including underinsured) motorist coverage is provided by nearly every automobile policy sold in California. Your uninsured motorist coverage is designed to compensate you for a loss that you sustain caused by a driver who is uninsured, or inadequately insured. Uninsured motorist coverage is insurance coverage that protects you if you are involved in an accident with a motorist who has no insurance or if you are victim by a hit-and-run driver, or a driver that left the scene of an accident, who is never located. Uninsured motorist coverage is available in the same amounts as regular liability insurance coverage.
Insurance companies today are required by California law to include uninsured motorist coverage as part of every automobile policy written unless you specifically decline it in writing. This coverage, by the way, is usually designated on the first page of your automobile insurance policy by the letter or letters "U" or "UM"
Who is Insured by my Uninsured Motorist Coverage?
With uninsured motorist coverage as part of a policy it affords coverage for you and all members of your family who reside in your household with you. This also includes any minor children of yours who do not reside with you or your children who are attending college.
You do not have to be an automobile driver or passenger in order to be eligible for benefits. Your automobile UM policy applies if you were a pedestrian, bystander, bicyclist, or motorcyclist in an accident, too, as the motorist who caused your injuries was uninsured or underinsured.
Uninsured motorist coverage also benefits other passengers in your car, or someone driving your car with your permission, who are injured by an uninsured or underinsured driver.
What if it is I without Auto Insurance Coverage?
If for whatever reason you are driving without car insurance you are breaking the law in California. And, with approximately six million auto accidents in the U.S. annually, you are also tempting fate to a significant degree. If you drive, and don't have auto insurance, here are some things to consider:
California financial responsibility law requires owners of vehicles to provide proof that they are financially responsible for injuries and damages that their vehicle may cause. The most common proof of financial responsibility, of course, is to have auto insurance (your auto insurance papers or insurance card).
The State of California Vehicle code also has established firm guidelines and the state will impose penalties for driving without insurance (or a valid drivers license). These penalties may range from several hundred to several thousand of dollars in fines, vehicle impoundment, and even incarceration (jail time). The possibility of penalties such as these should be enough reason for anyone to purchase auto insurance.
Few occurrences in our lives today have the potential to be more financially devastating than if you are in an automobile accident at which you are at fault and you don't have car insurance. In addition to fines, you very likely will be responsible for paying all medical bills of the injured person or persons in the accident, and for all of the property damage you caused. You make yourself a certain target to get sued for all damages and the potential outcome of financial loss for not having car insurance and the monetary costs could be as high as hundreds of thousands of dollars. And, this does not factor in the basic emotionally strain most must feel when driving, or having been in an accident, without adequate auto coverage.
Purchasing Car and Other Insurance
When you purchase car insurance basic minimum coverage is required by California state law. These are typically called limits of liability for Bodily Injury and Property Damage. Any reputable insurance agent can tell you what those minimums are, or you may also contact the California Department of Insurance.
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