The Pitfalls Of Having Car Insurance
All states require that anyone driving a motor vehicle to have car insurance.
While this can be beneficial, there are many pitfalls of having car insurance.
Although specific problems may vary from state to state, there are a few that are especially worth mentioning.
One of the pitfalls of having car insurance is that car insurance quotes are based in part on a person's credit rating.
Some California car insurance companies, for example, quote significantly higher rates for people with low credit scores.
These people may never have had an accident or ticket, but they pay higher rates all the same.
Although this may not commonly be seen as one of the pitfalls of having insurance, sometimes people decide deliberately to wreck their vehicle so that they no longer are responsible for it.
They choose to run into another person, and then claim excessive medical bills.
The insured person then becomes liable for the other person's behavior, because he or she was a responsible, law-abiding citizen with insurance.
It pays to shop around for car insurance.
Don't buy the first policy that you find.
Sometimes, agents learn that you were offered a better rate elsewhere, and work hard to compete with that price.
You may get a discount of as much as ten percent of the policy cost by doing this.
Be sure that your policy meets your state's requirements for insurance.
Some states require higher coverage on personal property or medical liability.
Others require certain minimum values for uninsured or underinsured motorists.
Some insurance companies are licensed only to practice in certain states.
If the insurance company is not licensed in the state where you live, you cannot legally obtain insurance from the company.
This is particularly important in the case of insurance companies that offer online quotes.
Although most companies will know, it pays to check.
If you have difficulty locating an insurance agent, or have just moved to town, ask around.
Friends or colleagues may be able to refer you to a wonderful agent who can be very effective in helping you obtain the best rates.
Don't forget to ask about multiple policy discounts as well if this applies to you.
Shop around and get the best deal possible.
Remember, though.
Sometimes it is better to pay a little more for quality than to get the best rock-bottom price.
You may find that it is worthwhile to spend a few extra dollars and know that one of the bigger, better-known insurance companies are holding your policy.
While this can be beneficial, there are many pitfalls of having car insurance.
Although specific problems may vary from state to state, there are a few that are especially worth mentioning.
One of the pitfalls of having car insurance is that car insurance quotes are based in part on a person's credit rating.
Some California car insurance companies, for example, quote significantly higher rates for people with low credit scores.
These people may never have had an accident or ticket, but they pay higher rates all the same.
Although this may not commonly be seen as one of the pitfalls of having insurance, sometimes people decide deliberately to wreck their vehicle so that they no longer are responsible for it.
They choose to run into another person, and then claim excessive medical bills.
The insured person then becomes liable for the other person's behavior, because he or she was a responsible, law-abiding citizen with insurance.
It pays to shop around for car insurance.
Don't buy the first policy that you find.
Sometimes, agents learn that you were offered a better rate elsewhere, and work hard to compete with that price.
You may get a discount of as much as ten percent of the policy cost by doing this.
Be sure that your policy meets your state's requirements for insurance.
Some states require higher coverage on personal property or medical liability.
Others require certain minimum values for uninsured or underinsured motorists.
Some insurance companies are licensed only to practice in certain states.
If the insurance company is not licensed in the state where you live, you cannot legally obtain insurance from the company.
This is particularly important in the case of insurance companies that offer online quotes.
Although most companies will know, it pays to check.
If you have difficulty locating an insurance agent, or have just moved to town, ask around.
Friends or colleagues may be able to refer you to a wonderful agent who can be very effective in helping you obtain the best rates.
Don't forget to ask about multiple policy discounts as well if this applies to you.
Shop around and get the best deal possible.
Remember, though.
Sometimes it is better to pay a little more for quality than to get the best rock-bottom price.
You may find that it is worthwhile to spend a few extra dollars and know that one of the bigger, better-known insurance companies are holding your policy.
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