Tag: Auto Insurance

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Financial Insurance

Reduce, Pause, or Cancel Your Car Insurance

Reduce, Pause, or Cancel Your Car Insurance

In some cases, you might want to pause or cancel your car insurance on a car you aren’t actively using. It can be a great way to cut down on costs for a few months and save money that could be better used in another area of your life.

Some car insurance companies will allow you to suspend the car insurance for a few months while in others you will need to cancel it completely. It’s a common way for people to save money when they are having a financial hardship. Many companies will be lenient if you explain to them the situation and tell them it’s for economic reasons.

Most car insurance companies will make you call or appear in an office to pause or cancel your plan. This is for security purposes because they want to ensure that you are the one canceling the plan and not someone else.

Reducing Your Plan

This involves minimizing your plan to only pay for the car insurance parts that are required by your state. It’s called a minimum coverage option. Most states require you to have liability insurance, personal injury protection, and medical payments coverage.

You might want to also keep comprehensive coverage if you are storing the vehicle. This will make sure that the car is covered if it is stolen or is damaged from falling objects. It will also protect the car from vandalism.

Make sure to contact the DMV if you only have comprehensive coverage and not liability coverage. This way they know no one is driving the car and you only have insurance to protect it from non-driving damage.

They will usually make you file an affidavit so that it’s on file somewhere that no one will be driving the car.

Pausing Your Car Insurance

This allows you to stop paying the car insurance momentarily for a few months while you get your finances together. This allows you to keep from experiencing coverage lapse. It’s also more cost-effective than canceling your insurance and then reapplying for a new one at a later time.

Pausing car insurance is only allowed by some companies and usually under certain circumstances. You will also need to go to the DMV and get an affidavit of non-use. This allows you to legally stop paying car insurance while you are not driving the car.

This isn’t usually an option if you have a car loan. Lenders almost always require you to have coverage but check your agreement to see the specific protocols.

Canceling Your Plan

This will also not work if you have a car loan. Canceling completely ends your insurance. If you decide to start driving again, you will need to look for a new policy and resign a plan.

This also requires a DMV visit to receive a form to say you will not be driving the car. This will create a lapse in your insurance history and might may your insurance more expensive when you begin to drive again.

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Financial Insurance

How Long Does a Car Accident Stay on my Record?

How Long Does a Car Accident Stay on my Record?

Those shopping for car insurances right now can surely expect a low rate. But, only if they’ve maintained the cleaning driving record one can have. It is a fact that the safest drivers are the favorites of insurance companies while those with shifty records may end up with big costs.

However, the good news is that car records do not last on your records forever. You’ll be able to reduce your premium once you understand when accidents clear off your history.

When Accidents Leave Your Records

There is no doubt that car accidents are very scary and stressful. Not only physically, mentally and emotionally but also financially. In addition to dealing with the other entire trauma surrounding your life and body from an accident, you also have to bear the financial burden resultantly.

Your insurance premiums simultaneously increase when you suffer an accident. Can you guess why? Simply because the insurance company now views you as a “high risk” for its business. But you do not need to lose heart just yet: accidental blemishes will disappear from your record with time. You only need to be patient.

The length of time it takes for records to clear depends on how severe your accident was. It also depends on which state you met the accident in. Car laws vary by state and many states have a pint system where they follow traffic violations.

So if you’re a driver that committed an egregious vehicular crime God forbid, you’ll be getting more point for it. In the case of too many points, chances of license suspension altogether are also high. The problem in some states is that their points system is not the kind that indicates the length of time your records will show the accident.

For example, if you’re in California and you commit a DUI offense there, then you can forget about low rates for straight thirteen years because that’s how long your car accident is going to feature in your records. But if you’re in Michigan, the car law is going to be slightly easy on you and they will only hold your accidental offense for two years on your records.

Here is a helpful table to see how long your accident will feature on your records:

  • Minor Accident – For three years
  • First minor accident – For many insurance companies, this is a forgivable incident. If you have had a minor first-time accident, it may likely not show on your records at all.
  • DUI – This offense stays on your record for ten straight years.
  • Hit-and0run – Another accident that occupies a place on your record for ten years.

The best idea is to refer to the local guidelines of your state or get in touch with your local motor vehicle department for specific information regarding your case.

If the Accident Wasn’t Your Fault

Not every accident will by purely your fault. Sometimes you just are the victim of another driver who caused it and you simply got unlucky. In such a situation, the accident does enter into your driving record and stays there for the stipulated time but it does not impact your insurance premium.

All you need to do is get your police report copy to serve as evidence of your innocence in the accident.

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Financial Insurance

Car Insurance: Tips & Ideas for Cutting Costs

Tips & Ideas for Cutting Car Insurance Costs

When you’re behind the wheel, you need car insurance to protect you. But how can you make the liability insurance or car coverage more affordable for you?

Here are some tips and ideas for cutting your car insurance costs:

  • You must remember that insurance companies offer multi-car discounts and make it your goal to take advantage of that. Hence, if you try obtaining a quote from an auto insurance company for a single car, they will surely give you a higher quote.

But if you asked them for quotes for several cars or drivers at one time, you will get a more discounted bulk rate. Do you know why? Because they’re willing to give you a deal if they see promises of more business from you.

You can gather your family members, neighbors, friends etc and then ask for a collective quote.

  • Insurance companies are smarter than you think. They conduct studies to prove that people with good credit scores are less like to make insurance claims. Hence, try paying your bills on time and clearing your credit card debt before purchasing your car insurance. You could win lower premiums this way.
  • Being a safe driver is one easy way to cut car insurance costs. It’s common knowledge that safe drivers are the favorites, especially for car insurance companies. Try to maintain a good driving record and you’ll win safe driving discounts in return on your insurance, almost up to 10% to 23 %.
  • Insurance companies insure different people and cars differently, which is why you will find a difference in thousands of dollars between their quotes. This is why we suggest you first shop around well to see who’s offering what. With three or four quotes in hand, you can settle for the most reasonable one.
  • There are some insurance companies who award discounts to those who undergo defensive driving course. With this course, you can the number of points on your license. You may even opt for accident prevention or similar course to win this discount. Not a bad idea it seems!
  • Bundling your insurances can lower your costs too. You may already be having a homeowner’s insurance or some others and if you wish to purchase more than one policy, it would be a great idea to ask your agent to bundle these. In return, your insurance provider may give you a discount, which they often do on bundle insurances.
  • Using mass transit will shower fewer miles on your insured automobile in year and that is sure to reduce your costs too. You see, it is typical for an insurance company to make you fill a questionnaire before signing up for discounts. If you are commuting for three to four hours daily back and forth from work, you will surely be paying more premiums that those who only drive a mile a day.

Hence, a good idea is to ask your insurance company about their mileage thresholds. That way you can plan your mileage accordingly to win a discount.

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Financial Insurance

8 Questions To Ask Before Buying Car Insurance

car insurance

Car insurance is one of those things that everyone has to have, but now and then you probably see an ad that makes you wonder if you might be overpaying. So you inevitably shop around, but when you’re getting quotes from various agencies, there are some important questions to ask before you cut a check for those first premiums.

1.   What Coverage Options Do You Have

You will want to know if there is coverage for any other drivers. Often this will be needed in situations where a roommate or family member borrows your vehicle. You want to make sure that anyone else driving your car is covered should an accident happen. Another good option is underinsured or uninsured motorist insurance.

2.   Will My Job Alter My Coverage

You’ll be asked certain questions about your driving, how far you drive on average, how far you drive for work, and so on. If your job is in delivery, transportation, sales, or similar lines of work, be sure your vehicle will have coverage if an accident happens while you’re working.

3.   Why Is My Premium So High

This is a great question for your current insurance agent if you feel you’re paying too much. Ask them what factors are driving up your costs. You may be able to address them.

4.   How Significantly Does Raising My Deductible Lower My Premium

Frequently, insurers will offer lower premiums for drivers choosing a higher deductible. This can be good to keep your premiums low, but it can also work against you if you are no good at saving. While you can get lower rates with a higher deductible, if you don’t generally keep that much in savings for an emergency, you may find you can’t pay.

5.   What Discounts Are Available Through The Agency

This is a great question for any insurer, current or potential. There are often insurance discounts for everything from airbags, to theft-deterrent devices, to good students, and even jobs that are known for having safer drivers.

6.   Is Gap Coverage Available

This is a crucial question to ask if you still owe on your vehicle. Gap insurance will make sure that you aren’t paying off a car that’s been totaled by covering the amount remaining on your loan.

7.   Are There Fees Or Discounts For Certain Payment Options

Some insurance companies charge a fee to take a debit or credit card. Some offer discounts for setting up a direct debit through a bank account, as well as discounts for paying 6 months or a year at a time.

8.   Is A 24/7 Roadside Assistance Option Available

If you have a mechanical breakdown or an accident while you’re on the road, it will be when you least expect it. 24/7 roadside assistance is important for things like breakdowns, flat tires, dead batteries, things like that. While they are often available from just about any towing company, they are usually quite expensive, and having your insurance pick up the tab is always nice.

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Financial Insurance

Need Auto Insurance? Ask These 8 Questions

Auto Insurance

Many factors go into auto insurance decision making. Not only do you have to consider your premium, but you also need to decide what kind of coverage you need and how much to purchase. All of these things make it difficult to buy a car insurance policy.

Fortunately, you can better prepare yourself for car insurance shopping when you evaluate your personal priorities. In addition to calculating your budget, you should ask yourself eight questions to which policy options are best for you and your needs.

1. How Many Miles Do I Drive?

If you’re a stay at home mom or telecommuter, you might not put more than 100 miles a month on your car. However, you could easily put more than 1,000 miles on your car every month if you have a long commute to work. It’s important that you find an insurance policy that reflects the miles that you drive. For example, a mileage-based insurance would be a great option for low-mileage drivers.

2. What Do I Use My Car For?

You need to consider how your car will be used in order to find the proper coverage. If you are simply driving to work or using your car for personal reasons, a standard car insurance policy should be fine. However, you may need to get commercial insurance if you use your vehicle for rideshare, delivery, or any other tasks that you get paid to complete.

3. What Kind of Car Do I Own?

The type of car that you own can have a huge impact on your insurance rates. Not to mention, it impacts the type of coverage you require. Any modified or classic cars require special insurance. If you have a sportscar, you might not need a particular policy, but you should expect higher rates since your car is more likely to be stolen or damaged. On the other hand, customers with “safe” cars can usually enjoy discounts for safety features.

4. Where Do I Live?

Your location can also affect your insurance rates tremendously. People in urban areas are more likely to be victims of theft and vandalism, so they spend more money on car insurance.  Customers in rural or suburban areas typically have lower insurance rates. While you might not be able to control where you live, you should keep in mind how your location can impact your insurance policy.

5. Where Do I Park My Car?

Do you often park your car in the street? Do you keep it in a garage? Where you park your car can also be a risk. If you live in area where you park on the street, you also have to worry about other drivers hitting your car along with the risk of theft. If you don’t have a garage, your car is also susceptible to damage from hail, fallen branches, and more, so we recommend upping your comprehensive coverage.

5. Will Anyone Else Drive My Car?

Most car insurance policies cover occasional drivers, but you should make sure that frequent drivers are all listed on your policy. A frequent driver could be anyone who lives with you and borrows your car often. They could include a spouse, teenage children, roommates, and more.

6. How Much Do I Love My Car?

If you drive an old car and don’t care about its appearance, then you could buy the bare minimum insurance policy. Full coverage insurance would be better suited for anyone who loves their car and take pride in caring for it.

7. Do I Own My Car?

Leases and financing are great options for acquiring cars, but they can impact your auto insurance policy. You may be required to insure the car for its full value or the gap between what you owe and its current market value. This insurance is called supplemental gap insurance since it goes along with your collision and comprehensive coverage.

8. What Are the State Requirements?

Every state has its own rules and regulations for car insurance. It is up to you to research and find the minimum liability coverage for your vehicle.

Request a Auto Insurance Quote

Now that you know more about your car insurance needs, you should be able to find a great policy. We suggest that you start out by getting a car insurance quote from several companies with similar coverage levels. By doing so, you can get a fair comparison and find the right option for you!