by onlinefinancialnewsletters | Oct 29, 2018 | Personal Protection
If you’re a driver in the US, or many countries for that matter, you are required by law to have car insurance. Driving without car insurance is illegal, and for a very good reason. Although a technical US exception is New Hampshire, where drivers don’t have to have insurance per se… they still have to be able to prove that they have enough money put away in order to pay out if a crash happens. For all intents and purposes… you have to have car insurance in the US.
Over 37,000 people die in US car crashes every year, with a further 2.3 million becoming injured or disabled. All of this mounts up to a whopping $230 billion in costs annually, and car insurance is designed to protect drivers (and their four-wheeled assets) in case of unexpected events. Still, if you’re idiotic enough to drive without insurance and get caught, here are some of the consequences you’re likely to face.
Tickets/fines
If you get caught driving without valid insurance, you’re likely to get a ticket and you will also be fined. Although the fines vary from state to state, some parts of the country charge you thousands of dollars if you’re caught driving without insurance.
Suspension
The police have the power to remove and suspend your driving license if you’re caught driving without auto insurance, something which no driver wants to deal with! You’ll only be able to get your license back if you pay to have it reinstated (which isn’t cheap) and also provide proof of insurance. It can vary from state to state when it comes to how long you’ll have your license suspended, and repeat offenders can see their license being taken away permanently.
Towing
If you’re caught driving without insurance by police, you could be prevented from driving away by them having your car towed. You needn’t be in a crash or serious incident – you might have your car pulled over due minor speeding or a broken taillight, suddenly finding that your car is being towed away and impounded because you’re driving around uninsured.
While you haggle for insurance in the meantime, you’ll also be racking up impound fees too, making any financial struggles greatly exaggerated. In some regions, they begin auctioning your car away if you cannot pay and organize insurance quickly enough! In NYC, your car starts to go through the auction process a mere 72 hours after being impounded!
You could wind up in serious financial trouble
If you have a crash and you’re found to be at fault, you’re very likely to be financially responsible for covering the medical bills and repair expenses of the driver you crashed into, something which would have been made much easier had you possessed auto insurance. If you cannot pay, the victim driver may take you to court, causing you to rack up a fortune on legal fees, damages, and much more.
Police are beginning to get serious
The average uninsured driver rate in the US is around 12%, although some states are trying very hard to crack down on this number even further. For example, in Arizona, the police conduct random tests to see whether vehicles are insured or not. If they aren’t, the police will suspend the car owner’s driving license. Also, in Louisiana, the police are now able to monitor residents’ car insurance status in real time. For example, if pulling someone over at a traffic stop, Louisiana police will be able to check the driver’s insurance status almost instantly.
Getting future insurance
The irony here is that all of these consequences will be noted down and recorded in official documents, making it even more difficult and expensive for you to get insurance in the future. Having had your license suspended, for example, is likely to raise your insurance premiums when you DO look to organize insurance. Lying for your car insurance policy is insurance fraud, something which would also increase your premiums. The moral of the story is to simply follow the law, be honest, and choose adequate coverage. Otherwise, you could find yourself in both legal and financial trouble.
Looking for affordable car insurance which is tailored to your individual needs and circumstances? Get in touch with a member of our expert team today, who can consult with you and offer you top-tier advice.
by onlinefinancialnewsletters | Oct 18, 2018 | Personal Protection
We’ve all been there at some point – you’ve just passed your test, you’re excited to finally have some freedom, and then you realize that you’re going to have to pay car insurance. Car insurance, like all insurance, features premiums which are calculated according to risk. Unfortunately, the younger and the more inexperienced you are at driving, the higher the risk is that you’re going to crash. The result? Largely unaffordable car insurance premiums for young drivers.
You see, drivers aged between 15-20 make up only 6.7% of all drivers in the country, yet they’re involved in 20% of all the crashes. The numbers just aren’t in the favour of young drivers and college students! Nonetheless, finding affordable car insurance for college students is still a possibility. Here are some ways to find an affordable car insurance plan if you’re a college student.
Get good grades
Certain insurers, such as Allstate and Geico, will offer car insurance discounts to college students who can demonstrate that they achieve good grades, the thinking being that straight-A students are less likely to be reckless drivers. State Farm even offers a 25% discount for students with high grades! To qualify for such discounts, you usually have to be 25 or younger, enrolled in a school/college/university full time, maintaining a 3.0 GPA (or be on the honor roll/ dean’s list), and be able to provide proof of your grades via a report card, school letter, or another means of proof.
Look into pay-as-you-go coverage
If your car is mainly used for social and recreational use, such as going to visit friends or going to the grocery store, it may be worth considering pay-as-you-go car insurance which costs less if you driver fewer miles. Officially known as usage-based insurance (UBI), this type of insurance uses data about your driving to determine your premiums, meaning that it will be lower if you drive safely and less often. However, if you’re prone to long late-night trips and heavy acceleration, this may not be the best thing for you.
Choose an adequate amount of coverage
The state you’re in will have a minimum coverage requirement, so you should be sure to comply with this if you think that you’re going to need a more traditional driver-based car insurance plan. The National Association of Insurance Commissioners has a map which can tell you the insurers in your university’s state, ensuring that you’re adequately protected. For example, Nevada state laws stipulate that you must have a car insurance liability policy which covers $55,000, while in Texas, you need to have at least $115,000 in liability coverage.
After meeting the minimum state requirements, decide whether or not you need extra coverage. For example, if you drive an expensive car or you’re moving to an area which is known for car theft and crime, you may want to consider additional coverage. On the other hand, if you’re a very safe driver who is unlikely to crash, increasing your deductible could dramatically reduce the cost of your premiums.
Think about staying on your family’s plan
Surveys show that around 52% of college students leave their car at home when they leave for college. Even if you’re one of those people, it may be a good idea to stay on your family’s multicar insurance plan. You can be named as an “occasional” driver on the policy, keeping you protected when you drive at home, while still reducing your premiums. This is sometimes called a “resident student discount” or “student away at school discount”, and usually applies to students attending college more than 100 miles away from their parental home.
All things considered, you should consider your budget and your existing expenses when deciding what car insurance you can afford. Are there existing expenses, such as textbooks and groceries, which you may be able to cut down on? Whatever you do, avoid being underinsured, as getting into a crash without adequate insurance could see your claim being rejected, meaning you’ll pay enormous sums of money – often more than you would’ve saved by having too-low premiums in the first place.
If you’re a college student looking for advice of affordable car insurance, why not get in touch with a member of our knowledgeable insurance team today?
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