With cars in garage which are not being used, you still have to buy a car insurance for them. It can be a vehicle which once used by your teen when in college or a sports car which is occasionally used or a vehicle being damaged awaiting repair. All these will need a car insurance and yes you need to know how to minimize your premium rates on them.
Every state demands its driver to own an insurance with minimum liability requirements. If you want to escape, there are verification programs which will detect that your car is not insured and hence a heavy fine. Your state will decide your policy minimum limits on bodily injury and property damage. For example, Minnesota requires you to buy 30/60/10 coverage ($30,000 per person, $60,000 per accident and $10,000 for property damage) With high limits, it will be higher premium. However, with no fault insurance states, it works differently. The driver has to claim under his own policy and not under the other driver’s policy. This happens through Personal Injury Protection, which covers injuries.
Want to Cut The Cost ?
Even if the state mandates some coverages, there are ways in which you can bring down the costs. Consider collision and comprehensive coverages. Collision works when your car collides with another car or an object. Comprehensive works when your car is hit by perils. However, if the car is unused for a long time then these coverages will not be worth having and will just be waste of your money. Your car price also matters in buying these deductibles. A car of high value will have a benefit when any collision occurs than a car of lesser value.
An option which is becoming popular is “Pay as you drive”. You will be paying premium only for the miles driven. It is a special reward for those vehicles which are unused are not being used frequently. This definitely puts your car insurance premium to lower rate.
Most Americans, in an attempt to hold onto savings they cut down on their daily expenses. An inclusion of even car insurance premium into the block list, affects you. If you are not owning a car insurance, it simply means you are going uninsured. This does cause trouble to the other person involved in any accident with you as he will have to turn to uninsured motorist coverage under his own policy. Do not try and save on that little money.
Lapse in Coverage and It’s Penalties
If there is any lapse in coverage then it will easily trigger penalties. This is often expensive and becomes difficult for you to obtain a policy in future. Unfortunately, it so happens that drivers who are uninsured tend to often meet with accidents. Such instances, with no insurance or a gap in coverage easily burns your pocket. You will be labeled as risky by the insurance companies and will end up paying heavy fines when you decide to get insured again.
Be it any state, driving without an insurance is illegal. With high number of uninsured drivers, Oregon state has rolled out stringent measures for those who fail to get covered and heavy fines for lapse in their coverage. Any driver can be easily held by the cops by just running down on the number plate of the vehicle and be punished severely for lapse or failure to hold a policy.
Financial Hardship and Insurance
There are drivers who cannot afford insurance due to unemployment, without work permit or even relying on other members for commuting. With small paychecks they are unable to pay premiums and obtain a car insurance policy. In such situations, talk to your agent or the insurance company and tell them about your financial condition. They would raise your deductible on comprehensive or collision coverages, cut down on policy rates to reach required state minimum liability and reduce your premium rate. You will also be given an option to pay premium only for the miles driven, framing an affordable insurance rate.
When the insurance premium is high for adults only, the premium for notorious teenage drivers will be even higher. Every teenager will face high car insurance premium till they are experienced drivers. To get really good at driving, it will take lot of time and lot of practice is required, because driving is a learned skill. While driving, new drivers will undergo many accidents and these accidents statistics will be translated into higher insurance rates for teenagers and inexperienced drivers. Teenager drivers can do a few things to reduce the insurance rates.
- Discounts for Good Grades : To get good marks, car insurance should not be the motivation. Many insurance companies charge less premium for young drivers who consistently score high marks. Poor performance in school and accidents done by the teenagers will result in higher insurance rates.
- Taking No Alcohol : Teenage drivers try to test their boundaries and hence end up paying high insurance rates. Alcohol is one of them. Combination of alcohol consumption and inexperienced driving can lead to accidents and may end up paying high insurance rates. Many schools in U.S encourage the students to sign the pledge promising to make them stay away from alcohol till they are of the legal drinking age. You will be lowered with less premiums from the insurers if you have such commitments.
- Driver Education Course : Many insurance companies give discount if the drivers have completed the driver education course, because you can learn skills which the new drivers can learn and use them to avoid accidents and dangerous situations.
- Choose a Safe Car : Your insurance rate matters on what kind of car you have no matter what your age is, but your premium will be more if inexperienced young drivers are there in the policy. Hence choosing the right car for the teenager is important.
One of the most expensive thing to purchase in any part of United States of America is car insurance. If you want to know any information about insurance when you are planning to buy a car, there are sources like consumer groups, publications, state libraries and insurance department which give information about insurance. First and the foremost thing is you should know about your state requirements, laws and also what your insurance company fetches you and what your insurance company is providing you.
- Location : As the urban place will be prone to vandalism, traffic, thefts etc and if your car is garaged in such a place then your car will be at risk.
- Driving History : Your insurer will enquire you about the accidents and violations committed by you or if you have paid for the losses which had happened because usually drivers will have high risk and will be charged with high rates.
- Gender and Age : Due to the distractions many youths commit accidents. Age and gender becomes one of the prime factor because males commit more accidents than female and people aged from 25-30 are prone to accidents.
- Prior Insurance Coverage : If you have bad records with the previous company then your car insurance premium will increase. If the customer has paid his premiums on time and maintained proper relation with car insurance then the premium rates will reduce.
- Make and model Of the vehicle : If your sports car is met with an accident then your premium will increase as the vehicle itself will be costly.
- Vehicle Usage : Risk factor of a driver will be estimated by the miles he travels. If he drives more then the risk increases no matter if it is being used for pleasure or business.