Ramifications of Driving without Automotive Insurance Coverage
Lowering Your Risk Assessment will Lower your Auto Insurance Premium
August 31, 2009 — Penalties of driving without a proper auto insurance policy in affect can cause a myriad of problems. Even if you are not involved in an accident, you can still be assessed penalties and fines if you are pulled over for a simple traffic violation. In some states, you can even have your license suspended if you are found driving without the proper coverage. Finding the right automotive insurance company is an important step, but it is one that needs to be taken immediately. The legal and monetary ramifications of not being covered are steep and you can protect yourself from this with simply making sure you have the proper coverage and that it is in effect and never expires.
When receiving automotive insurance quotes, it is important to remember that your age will have some say in the amount you are given. They will also come to this number based on a personalized risk assessment. It they come to the conclusion that you are a higher risk; your insurance premium will be higher. There are a few things you can do to help keep this number down.
• If you are in the position where you require automotive and homeowners or renter’s insurance, try to apply for them through the same insurance company, if you can. A lot of companies will apply a multiple policy credit and this will lower your premium amount.
• Being a safe driver will help to insure that your insurance rates stay at a normal rate. Many companies keep track of your driving history to assess your risk and to come up with your policy premium. Speeding and running stop signs will cost you in the long run on your insurance premium.
• If you are a college student, many insurance companies offer discounts for keeping your grades up.
• When looking to buy a new car, pick one that is a safer, lower liability vehicle by your insurance company’s standards. The safer the vehicle, the better your insurance premium will be.
• Don’t skimp on the extra safety options that are available when buying your vehicle. Airbags and an anti-lock brake system can lower your premiums.
• Enrolling in a defensive driving course can offer you a discount through some insurance companies.
You need to keep in mind that this is a business transaction and it is one that is based on risk. Your insurance company is in the business of providing automotive insurance in the hopes that they will collect premiums and not have to pay out for damages as much as they are taking in. When you raise your risk level, your premium will raise as they are not going to want to take the risk of having to pay out more than you have paid in. Asking if discounts are available is always a great idea. Most well-established companies will offer discounts for safe drivers and receiving this discount can lower your premium
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