This entry was posted on Friday, February 12th, 2010 at 6:20 am and is filed under Vehicle. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
No matter how you pay for car insurance, you probably pay a pretty hefty sum of money for car insurance. While it is possible to lower the amount that you pay by shopping around for insurance, you may still wonder what all those dollar give you. In short, you get peace of mind for the dollars you will pay. The long answer may help you to better understand the final destination of your premiums.
Purchasing car insurance fulfills your state’s financial responsibility laws. These laws are different in each state. Some states only require drivers to have very little liability insurance, while others require more liability insurance and other coverage as well. In some states, the insurance company is required by law to report if you allow the coverage to lapse by even one day and the state can cancel your vehicle’s registration or your driver’s license until you submit proof of insurance and pay a fine or the administrative cost to reinstate.
Driving without car insurance, however, can cost you much more than just a fine. If you are in an accident, you can be held financially responsible for the other person’s vehicle and medical expenses. In addition, you will likely be ticketed for driving without insurance. These expenses can far outweigh anything you might pay in insurance fees.
In addition you will have to pay to have your own vehicle repaired or replaced. In the interim time, you may have to pay for a rental vehicle to take you to and from work and fulfill other duties for which you need a vehicle. This can sometimes be several weeks. The cost you pay for the rental vehicle is often a significant amount of money.
Additionally, you will want comprehensive coverage on the vehicle that will pay in cases of theft, vandalism or for breakage of glass. Car thefts are far more common than we want to think. Stolen cars are often driven until they are wrecked or damaged. They may also be stripped and the parts sold. Even when the car is recovered, it has often been damaged beyond repair.
Newer vehicles are often required to have comprehensive coverage by the loan company. If you do not have the insurance the finance company will purchase their own insurance on the vehicle that offers you no coverage, but will pay off the loan if the vehicle is damaged or stolen. This insurance is very costly and will be added to the end of your loan on the vehicle.
Comparison shopping for insurance is a great way to save money that you pay for insurance. There are many companies that offer free insurance quotes. You will find several of these companies online. For the most accurate quotes, go ahead and give your personal information. Then once you have collected three to five quotes from different companies, take time to compare each quote to find the best price for your insurance.
When you think about it, the price you pay for peace of mind is not all that much.
Looking for a quick and efficient roadside assistance service? As Canada’s largest automobile association, they have towing services, caa membership, and other services available to all their members. There’s even special promotions such as New York City vacation packages.
read comments (0)