But before you start searching for car insurance, you should know the following five important things.
1. You Can Still Get Car Insurance Even After a Conviction
While you can check out this post to learn 53 Interesting Car Insurance Facts [That You Probably Didn’t Know], in this article, we’ll look at some of the most important things you might not know.
For instance, if you have been convicted, you may be wondering whether you can still get car insurance.
Well, in the U.S., the answer is yes – you can indeed get auto insurance. However, to do so, you will need to get an SR-22 certificate.
The certification of financial responsibility is an insurance company’s guarantee to the state Department of Motor Vehicles that you can and will obtain the legally required car insurance coverage.
As soon as the SR-22 is accepted by the DMV, your license’s suspension will be lifted and you can drive legally again.
2. It’s Not Always More Expensive to Insure a More Expensive Car
Some people believe that when you own a more expensive vehicle, it will cost more to insure. While that can sometimes be true, it’s not always the case.
Therefore, if you’re looking to buy a new car, it’s important that you calculate what the insurance cost will be for the different models you’re considering purchasing before you buy.
For example, a high-end SUV could have better claim rates for theft and accidents than a car with a lower price tag, in which case, your premiums would cost less.
3. You Could Pay More for Coverage if You Let Your Insurance Lapse
If you’re not planning on driving for an extended time, you might think you can save money by stopping your car insurance until you plan on driving again.
But actually, it’s usually best to keep paying for your insurance as it can end up costing you more to get coverage after a lapse.
The reason is car insurers consider uncovered drivers to be a higher risk, even if you have good cause for not driving and being uninsured for a certain period. Indeed, even a lapse of one day can lead to you paying higher car insurance rates.
4. You Could Save Money by Paying Your Premium in Full
Most people pay their car insurance in monthly installments, but you might not know that you can potentially get a significant discount if you pay the whole of your premium upfront.
You can avoid the administrative fees and other costs that you’re charged for paying your car insurance monthly.
So, before you pay your premium, make sure you ask your insurance provider about how much of a discount you could receive for paying your entire premium in one go.
Though, paying your premium in monthly installments could be the better option for you. And there are always other ways of saving money in general. For example, debt consolidation companies like Credit Associates could potentially help you to get back on track financially.
5. Comprehensive Coverage Doesn’t Include Collision Coverage
A recent study showed the majority of Americans believe their comprehensive coverage includes collision coverage. Well, it doesn’t.
The former provides protection against damage caused to your car by incidents that aren’t collisions, such as vandalism, floods, and fire, as well as theft.
But you will need the latter coverage to be reimbursed for damage should your car be damaged in a collision with another vehicle or object when you’re at fault.
While liability insurance is legally required in most states in the U.S., both comprehensive and collision coverage are optional.
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