Florida Insurance Now

Auto Insurance

Purchasing a new car can be a large investment today. Many people feel that what you pay for a new car, you could almost put a student through college. When you’re paying that much for a car, you’re going to want to make sure that it’s adequately insured.

Minimum Insurance Requirements

Many states require car owners to carry a minimum amount of liability insurance. Currently, every state requires that licensed drivers carry liability insurance on their automobiles. Many states also require you to have comprehensive or collision insurance if your car is not fully paid for. If your state doesn’t require it, your lending institution usually will.

Bank Loans

When you borrow money to buy a car, a bank wants to know that if your car were totally destroyed in an accident, they’d still get their money. If your car is destroyed and worth nothing, you don’t have a lot of incentive to make the loan payments! Even if the law doesn’t require you to have auto insurance, many reasons exist why it’s just a good idea to have auto insurance.

Accidents Do Occur

Regardless of how careful a driver you may feel you are, everyone has an accident at some time in their life. Whether it’s sliding into ditch on an icy road, having your car damaged by a flying object or a deer bumping into it, many risk factors can cause you to need auto insurance. This is why they’re called accidents. For the small price you pay for auto insurance, it’ll be more than worth it if your car is damaged. Whether you’ve borrowed money to buy your car or have spent months or years saving for it, you want to know that if your car becomes damaged, you have adequate auto insurance to have it fixed or replaced.

We Live In The Age Of Lawsuits

Liability is another reason why it’s so important to have auto insurance. As much as we hate to admit this, we are in a day and age of lawsuits. Few people are involved in accidents that don’t turn around and sue the other driver or their insurance company. Your insurance will give you peace of mind, knowing that if this type event should occur, you’re protected. There are many ways we can cut back on expenses to save money. Don’t let eliminating auto insurance be one of them!

Auto Insurance Savings

The phrase “insurance poor” usually means that we don’t even need insurance; also, many use it as a way of saying they are poor from paying for too much insurance. Regardless of what it means, two things remain true. We need insurance, and we always feel we’re paying too much for it. Auto insurance is a necessary expense if you own a car and are a licensed driver.

Coverage

Whether it’s full coverage (comprehensive, collision, medical payments and liability) or just the basic liability insurance required by law, auto insurance is a necessity. However, there are simple steps you can take to save you money by decreasing the amount you’re paying for your auto insurance.

Deductibles

Ask about a higher deductible. The deductible is the amount you have to pay before the insurance company will pay their share. If you have a $500 deductible and the damages are $3,000, you pay $500 and the insurance company will pay $2,500. By increasing your deductible from $500 to $1,000, you can save up to 10% or more on your premium. Make sure; however, that you don’t have a deductible so high that you can’t afford to pay it if an accident does happen.

Combine Insurance

Combine your auto insurance with your home insurance. Most insurance companies will give you a discount if you have more than one insurance policy with them. Combine as many of your insurance policies as you can with the same company. If you have more than one vehicle insured, put them all on the same policy. This will also give you a discount. If other members of your household also have insurance policies with this company, inform the insurance company of this fact.

Buy Less Expensive Cars

Buy autos that are cheaper to insure. Yes, it really is true that red sports car can cost you more in premiums than a blue station wagon. If auto insurance costs are a real concern to you, get quotes on auto insurance before you buy a car.

Your Driving Record Counts

Watch your driving record. The more speeding tickets, moving violations and at-fault accidents you have on your driving record, the higher your auto insurance is going to be. Violations stay on your record for anywhere from 3 to 5 years so watch your driving record and drive the speed limit!

Your Credit Score

Your credit score really does affect your auto insurance costs! Keep your credit scores as high as possible and check your credit report every year to ensure it’s accurate. If there is a negative entry on your credit report, it can affect your auto insurance and credit history.

Ask About Discounts

Ask about discounts. All insurance companies provide some sort of discounts. If you can get multiple discounts on your auto insurance, it can lower your premiums substantially. Discounts may include non-smoking, low-mileage, good student, safe driver, multi-car policy and more. Don’t be afraid to ask!

What’s the difference between cancellation and non-renewal?

There is a big difference between when an insurance company cancels a policy and when it chooses not to renew it. Insurance companies cannot cancel a policy that has been in force for more than 60 days except:

If you fail to pay the premium.

You have committed fraud or made serious misrepresentations on your application.

Non-renewal is a different matter. Either you or your insurance company can decide not to renew the policy when it expires. Depending on the state you live in, your insurance company must give you a certain number of days notice and explain the reason for non-renewal before it drops your policy. If you think the reason is unfair or want a further explanation, call the insurance company’s consumer affairs division. If you don’t get an explanation, call your state insurance department.