Auto Insurance

By Chimezirim Odimba

It is completely illegal to operate a motor vehicle without adequate auto insurance. It is up to the state to determine the amount of coverage that you must have to legally drive your vehicle. In the long run you will save more money by actually buying auto insurance than trying to skate through without it.

The Secretary of State won't allow you to obtain license tags for your vehicle if you cannot provide proof of valid auto insurance. If you want to legally drive a car then you must also have license tags that are valid. Those that have no insurance risk tickets, hefty fines, and may even have their driver's license suspended.

Your automobile can be hauled away at your cost when you drive without auto insurance. States pay the price for uninsured motorists. Auto insurance offers a blanket of protection to everyone involved.

If an accident were to happen and you are driving without insurance, the consequences are very serious. Drivers with no insurance risk losing their vehicle and also open themselves up to the prospect of being sued.

All parties involved in an accident, including passengers in your vehicle can, by law, take you to court for any expenses that they may have incurred. Auto insurance is the only form of protection that a driver is offered to absorb most of the costs.

Any costs that are involved with repairing your car will be paid for by the insurance company, once you have satisfied your deductible amount. In the event that your car can not be repaired then the insurance company would pay for you to buy a new one.

One day, those who have chosen to not buy auto insurance are going to have to, even of it is just for the purpose of renewing your tags. Insurance companies are well aware of folks that have a tendency to drive and have no insurance.

These people are considered to be high risk and while they can still buy insurance it is often probationary and extremely costly. When you drive without insurance the cons definitely outweigh the pros.

About the Author:

Learn more at Safe Auto Insurance and Cheap California Auto Insurance. Chimezirim Odimba helps you pay less for more.

Auto Insurance Benefits of Collision and Comprehensive Coverage

By Joseph Welusz

Car Insurance Coverage

The most commonly recognized coverages, in addition to the basic liability are collision and comprehensive coverages also known as other than collision coverage. This article will explain the differences in coverage and what is covered so when you get free insurance quotes you will be well informed.

Collision Coverage

Collision coverage will pay for damages resulting from an automobile accident where you collide with another object, such as another car or tree. The coverage is comparable expensive when compared to the other coverages included in a car insurance policy. Collision coverage is optional and isn't required by law, although a leasing are finance company my require it.

If you have an old car and it is not worth at least $2000, you might want to consider not buying collision coverage. You will likely pay more for the coverage than you would get if you filed a claim. This is because insurance companies are only required to pay for the lessor of either what the car is worth or the costs to fix it. They might deem you vehicle worth less than what it will cost to fix.

Comprehensive Coverage

This coverage will pay for almost all other damages to your vehicle including, theft, vandalism, severe weather, flood, fire, the hitting of an animal and glass including your windshield. This coverage isn't as expensive as collision coverage and is chosen by many consumers. This coverage is also optional and not required by law.

When considering collision and comprehensive coverage, you should consider your deductible. A deductible is an amount of money you agree to pay as part of a claim before the insurer is committed to pay the rest of the claim. For example, if you carried collision coverage with a $200 deductible and you had a $500 loss, you would have to pay $200 and the insurance company would have to pay the remaining $300.

In essence, the deductible lowers your premium because your are taking part of the financial burden off of the insurance company unless you choose a zero dollar deductible also known as a full deductible. The reason insurance companies offer deductibles is because it decreases the chance of you filing a small claim, which are expensive for the insurance company to handle.

If you purchase a new car with a loan, the financial institution that loaned you the money might require you to purchase comprehensive and collision coverages. This is because they see your car as collateral for the loan, and they want to make certain it is worth something if they need to repossess it.

If you decide or are required to buy comprehensive and collision coverage you can reduce your cost by agreeing to higher deductible but remember that will be the amount you need to pay before the insurance company pays there share. As the car gets older many people choose to only have comprehensive coverage to protect themselves against other than collision claims. This will help them secure cheap car insurance on an aging vehicle.