Auto Insurance Mistakes You Never Want to Make

Have you ever made a terrible mistake due to the sheer lack of knowledge? Have you later wished someone had warned you before-hand? Well, that's exactly what we're doing today. In order to save you from unprecedented grief and debt, we've decided to explore some of the most common and costly auto insurance mistakes.

People pose several justifications for not doing so, ranging from "Nobody can tell me what to do!" to "I'm the safest driver in the country and will never cause an accident." to the most frequent, "I can't afford it." Are these your favorite excuses for making this mistake? Well we have news for you.

    First off, the government can and will tell you what to do and it says that you have to have valid auto insurance in order to drive. Still feel rebellious? Well, go right ahead but keep in mind that you will be penalized if caught driving without car insurance. Common penalties include and are not limited to having your license and registration suspended, having your car impounded, and getting an expensive ticket. Not so tough now, are you?

    For those who think they are the safest drivers on the road, kudos to you for having such a high level of self confidence, but no matter how great you think your driving skills are, remember that anybody can get into an accident. And if you're found at fault or the other party is also an uninsured motorist like you, you'll have a world of financial problems to contend with, not to mention the aforementioned penalties attached to driving without insurance.

    Yes, times are hard, the economy is still in shambles, and spending your hard-earned money on insurance (which you may never need) seems like a complete waste. You genuinely may feel like you can't afford auto insurance. But consider this: Can you afford thousands of dollars in medical bills and damages? Because that's the risk you take every single time you drive without auto insurance.

So now that we've convinced you to purchase car insurance, let's take this one step further. How much is enough? The minimum amount of car insurance every driver is required to have varies from state to state. While most states require some amount of liability coverage, which covers damages caused to another person's vehicle, property, or person, some states require that you carry PIP (Personal Injury Protection) coverage as well. While this is the minimum required to legally drive a car, it may not be enough. The minimum required auto insurance may not cover theft/vandalism of your car, collision into posts, trees, animals, etc., or damages due to rain, etc. For your insurance to really serve its purpose you should at least have collision and comprehensive coverage, in addition to the state mandated liability and PIP (if applicable). Don't skimp on auto insurance coverage; it could set you back by thousands of dollars, and your insurance policy won't be able to help you out.

Picking the wrong insurance provider

Let's tackle the next hurdle: choosing the right insurance provider. Yes, we know that the internet is littered with ads for 'CHEAP INSURANCE QUOTES', but falling into their trap may not be the best idea. When picking an insurance company, don't choose a company simply because it gave you the cheapest deal. An obscure, unheard-of insurance company is not likely to have the funds, means and inclination to handle a claim the way you need. Besides, a common ruse is to lure people in with cheap auto insurance premiums initially, only to raise the rates later for absolutely no reason. Opt for an established, reliable, well rated auto insurance company that offers you affordable automobile insurance quotes and thorough coverage. If you're going to be paying premiums every month, look at car insurance companies that will handle your claims seriously, efficiently, and effectively. You'll save money in the long run and enjoy a greater peace of mind.

Just because you have purchased full auto insurance from a great provider, doesn't mean you can now proceed to crash into the first car that brings out your road rage, or drive while you're inebriated (translate: drunk). Yes, you can file a claim with your company and have the damages taken care of. But that is if you have adequate coverage and if your claim is approved. Also, making a claim tends to raise your insurance premiums. Furthermore, if you cost your insurance company too much money, or exhibit behavior indicating that you will do so in the future, they will not keep you around as a client. Yes, you can look for new auto insurance providers if this happens, but good luck finding someone to represent you if your driving record is sullied with DUI's or other major offences. Remember, a clean driving record will get you the best auto insurance rates out there.

Opting for a Deductible you can't afford when buying an auto insurance

Many people decide to reduce their insurance premiums down by opting for a higher deductable. However, please keep in mind that in the event of a claim you will actually have to pay this deductable. While you may never have to file a claim, you must prepare for the day you might. So make sure you can actually afford to pay the deductible you sign up for.

Set a reminder on your phone, circle the date on your calendar, keep a certain amount of money aside every month so that you don't run out; do whatever it takes to pay your insurance premiums. Failing to make your insurance payments on time will result in termination of your policy and this will leave you completely uninsured. Any damages you or someone you crash into sustains from this point onwards are your own burden. Also, if your policy has been cancelled due to non-payment, other auto insurance companies will be wary of taking you on as a client.

Lying to/ withholding information from your agent

You may be tempted to misrepresent yourself or your vehicle to your auto insurance company in order to save a few bucks but trust us, it's not worth it. Be honest about purchase price, condition, modifications, tickets, accidents, miles driven, and pretty much everything regarding your vehicle and its use. Anything less than full disclosure can be construed as fraud.

Not reading your policy (Yes, you need to read EVERY word)

Yes, it's long. Yes, it's tedious. Yes, some of the font is really tiny. But you must read EVERY word, especially the fine print. Why? So that you know exactly what to expect from your auto insurance provider and don't get any nasty surprises later on. For example, you may think that your insurance provider will cover the costs of a rented car if you get into an accident that prevents you from driving your own vehicle. But on having this situation occur, you may find that your policy doesn't include this service. Similarly, you may be eligible for several discounts and privileges that your auto insurance agent has conveniently neglected to mention. But if you read your policy carefully, you'll know about your rights and privileges.

Auto Insurance Policies pick pay as you go

There may be times when you find yourself in need of car insurance for just a single day, or maybe you need to drive for a week or two. There are many reasons why you may want this type of cover and in these circumstances it simply does not make sense to get a standard annual policy. An annual policy will usually cost you a large upfront fee so even though you can always cancel the annual policy when you no longer need it, you will already have paid a large sum of money up front. Even more relevant is if you need to drive for a day or two, but then not for a few weeks, then you need to drive again, then you don't need a car, and so on. Ongoing annual policies are a terrible waste of money if you have this type of pattern of irregular driving needs.

A motoring policy for a single day is ideal when you purchase a new vehicle. Instead of having to take the time to apply for an annual policy at the time of purchase you can get car insurance for a day in a matter of a few minutes. Temporary insurance is quick and easy to get and this makes it ideal for times when you spot the car of your dreams and you want to snap it up before anyone else does. You can put a quick basic policy in place, then sort out a longer term plan when you get home.

Another reason you may want to get car insurance that lasts a day or two is because you need to use someone else's vehicle and your insurance does not cover you. By purchasing temporary car insurance you will get the insurance you need without paying a lot for it.

There are times when someone needs to borrow your car or van. Perhaps you are temporarily unable to drive, or you have family coming to visit from out of town and they will need a vehicle to drive. This is a perfect time to get car insurance for a day. Your vehicle will then be properly covered in case of an accident.

Another group of people with irregular driving habits tend to be younger people living with parents. If you are not working full time and do not need a car for regular commuting, you may only need a car very occasionally. You could go weeks without needing to drive, but then want to do a lot of driving in a short space of time. A traditional policy would be a waste of money in this situation. The best option for ongoing irregular driving would be a pay as you go policy. This is where a tracking box is fitted to your vehicle and you are charged by the insurer based on the driving you actually do.

Car insurance for a daySince car insurance for a day is so quick and easy to get you will find that there are certain restrictions that apply to it. In most cases the insurance company will insist that you are at least 25 years old. Your licence will have to be clean too. In other words they do not want any violations or accidents on your licence. A clean licence is a sign that you are a safer driver and a lower risk to them. Many times they will also want you to have had a licence for a certain period of time.

The car insurance companies may also put restrictions on the type of vehicle you can insure. They will most likely not insure a car which has been modified. The vehicle may have to have a particular limit on the value, also. Car insurance for a day is very useful in certain circumstances. You may find that getting this type of insurance is exactly what you need until you can get an annual policy in place.

How to Lower Car Insurance Rates

In the present economic times we are all looking for ways to cut back on our expenses. Even those that are in the higher bracket of the income level are looking to cut back on their ways of expenditure as our paychecks are now being finished before the end of the month. One area that not a lot of persons look when they are trying to find ways to save is to their car insurance company. The truth is that you can lower your car insurance rates and this will save you a good amount of money. You may not be able to buy a house but you will be able to save more for your golden years or save for your children's college funds. There are a number of ways that you can lower your car insurance rates.

Change The Structure Of Your Current Policy

One of the most effective ways to do this is to combine your home insurance and your car insurance. If your insurer offers this feature you will see that it will give you lower combined rate when you add up what you pay individually now for both house and car. If your company doesn't offer this feature then you can switch to a company who does. The best part about switching companies is that the new company may give you another discount just for joining them.

Another method of restructuring your policy is to pay a higher deductible. Some of us won't be able to do this but it helps in the long run especially if you maintain an accident free driving record.

Renegotiate With The Company your car insurance

If you have been with your present company for years and have insured multiple vehicles with them they may be willing to lower your rates. Your chances are even better if you have a clean driving record. Ask, you won't be disappointed I promise you... they want to keep you as a customer till you reach your golden years so if you have been a good customer they will lend some level of leniency towards you.

Shop Around for a car insurance

If you have tried any of the above and they don't seem to be working or flat out won't work then you can take your business elsewhere. Like I said before, you will be able to find a lower rate and you may even benefit from switching companies as the new company will want to give you an extra incentive for joining them.

Knowledge of the methods to employ to reduce your car insurance rates is simply about researching what is available to you in the world of insurance. You can use this information to negotiate a better rate or you can forget the negotiation and just jump ship on that old company. If you have been with them for a long period though, it may be better if you stay so explore your options thoroughly before you make the decision.

Auto Insurance Myths Debunked

We've all heard a few old wives tales. Like the one about cracking your knuckles and how doing so will give you arthritis. It has no basis in fact by the way, so go knock yourself out. Old wives tales, myths, urban legends- call them what you will - generally crop up around things that are important to us but we can't quite understand. Given that auto insurance is mandatory in our country, significantly affects our wallets every month, and is actually a pretty complicated, confusing subject, it's no wonder that there are quite a few auto insurance myths out there. Today we'll debunk 10 of the most common and misleading auto insurance myths.

Myth 1: I'll save money by going for the cheapest quote available.

Fact: When you buy auto insurance, you're basically purchasing peace of mind and the knowledge that an accident won't mean the end of your savings and a lifetime of debt. However to ensure that you will be covered for any losses or damages, it's better to opt for automobile insurance quotes from a company that has a reputation to maintain and the means to pay out when you make a claim. Opting for an obscure, fly-by-night insurance company just because it gave you the cheapest quote is a bad idea. If it rejects your claim, or does not have the funds to pay out, you could potentially lose a fortune.

Myth 2: All I need is Minimum Liability.

Fact: Yes and No. Minimum liability is all you need in order to drive legally. However, it is definitely not all you need if you want to be covered in the event of an accident. Minimum liability is the minimum car insurance you are required to purchase to drive legally, and the amount varies from state to state. But there are many accident scenarios which are not covered by minimum liability. Liability only covers damage caused by your car to others'. It does not cover damages to or theft of your own car. At the very least, it is advisable to get comprehensive and collision coverage as well as liability.

Myth 3: Red cars cost more to insure.

Fact: No. The color of your car has no bearing on your insurance rates. The make, model, and condition of your car do affect your insurance rates, but the color does not.

Myth 4: Rusty, old cars are cheaper to insure.

Fact: An old, deteriorating car will cost more to maintain, will need repairs more frequently, and has less security devices. This makes it a greater risk for insurance companies, and so they usually charge higher premiums on these cars. Second hand cars that are only a couple of years old and are in a good condition tend to fetch the best car insurance rates.

Myth 5: My insurance company can cancel my policy at any given moment, for any reason whatsoever.

Fact: Once you have signed its policy, an insurance company can only cancel it under certain conditions that were mentioned in the aforementioned policy. The State laws decree what can be included in the cancellation provisions of the policy. Usually, a policy is cancelled on grounds of non-payment or fraud. However, at the end of the term, a company may choose to discontinue the policy with a customer, in which case, the company must give the customer 30 days notice before the end of the term. If you believe that your policy was cancelled on unfair grounds, you can file a complaint with your Insurance Commissioner. Contact information for all states is available at the National Association of Insurance Commissioners website.

Myth 6: The insurance company doesn't care about my credit scores.Fact: Credit scores do affect your insurance rates. Insurance companies determine your financial reliability and credibility on the basis of your credit scores. Whether or not you have a history of defaults or arrears on credit card bills, interest, loans, etc, helps the insurance company anticipate the risk involved in taking you on as a client, and hence determines what insurance rates they offer you.

Myth 7: An accident will always increase my insurance ratesFact: Many car insurance companies offer something called 'First Accident Forgiveness', which means that the first accident you get into will not adversely affect your insurance premiums. So an accident doesn't necessarily result in an increase in insurance rates.

Myth 8:Younger drivers always pay obscene interest rates.Fact: Not necessarily. Many car insurance companies offer young drivers discounts for completing defensive driver's credits. Others give students below the age of 25 discounts for exceptional academic performance. Students can also get discounts by installing air-bags and anti theft devices. By availing of these discounts, a student driver can definitely enjoy affordable insurance rates.

Myth 9:Car insurance covers the costs of items stolen from my car.Fact: Generally, personal possessions left in the car are not covered by car insurance. Some home insurance policies cover such items, but that varies from item to item and policy to policy.

Myth 10: If I get into an accident and the other party is at fault but has no insurance, my insurance company will pay for my damages.Fact: Not necessarily. If you have sufficient Collision coverage or Uninsured Motorists coverage then the damages to your car and person will be covered. But you're on your own if you don't. This is why some states require that all drivers carry Uninsured Motorist's coverage. So what have we learnt today (besides the fact that we can crack our knuckles all we want)? We've learned that a statement doesn't become true just because many people repeat it. All of the above statements have led people to make bad insurance decisions. So save your friends and family some hard-earned cash and spread the word about these auto insurance myths!

Auto Insurance Quotes – Insure Yourself

Previously, Instant Online Auto Insurance, you have to decide what type of insurance you want. Many online insurance companies that provide car insurance quote. If the car is equal to or less than the cost of deductibles and charge it must be borne in mind obligations. Obligation quote, then the damage that can lead to another car, the passenger or the driver. Or it may be a cover, which includes all the above, and the damaged vehicle. If the car is purchased in the financial conditions, the company requires a comprehensive basis. This also apply for valuable classic car.

There are many insurance options to help you get the perfect car insurance you need. There are different liability and medical protection, including insurance, which protects you as little or no insurance. Vehicle areas should be protected from collision coverage and a wide range of options. Additional protection can be extended also to protect you from various injuries, including loss of profit, the cost of child care and medical care.

Two limitations should be established for the coverage. First you meet the minimum requirement for liability coverage set. It is always best to take a restriction such as high and affordable. It may cost you more in insurance payments, but it saves you money if you have an accident. Some people go bankrupt just because of the claims.

In addition, the Deductible fee will be paid before the insurance in force. It is used to repair your car, and should be involved in the accident. The lower the deductible the higher the quote for the policy, and the higher you set the deductible at the lower your quote will be; because people tend to be more requirements, if Deductible is lower.

Now, all you need is turn on computer and go online. Pick some auto insurance companies that have websites. It is better if you know someone experience it before and ask for recommendation.Then, you will need to give some information like the value of the vehicle, the plate number, and cars' condition to these auto insurance companies. The final step is answer the questions about driving history whether you experienced any accidents or any making traffic violations, etc. Do all steps on each site that you choose and then compare the quotes to make final decision.