Archive for February, 2012

Maybe you are thinking that who would know if you could drive a few months without insurance? Or one morning you get up and realize that you need to save money on your budget and first thing you think of is dropping auto insurance? This is a bad idea and you should think twice before going ahead. Your chances of getting caught is very high now that police uses special technology to check which vehicles are insured and which are not.

Then, there is the problem of dealing with claims. Don’t even think about the repairs to your automobile first. Think about the people you caused injures and damages. Who is going to pay for their losses? Do you have thousands of dollars sitting in the bank? Probably not and that is why you don’t want to buy a policy. But it is your responsibility regardless of being insured or not. They will still want compensation even it means it takes thousands of years for you to pay. They will keep taking it out of your wages.

uninsured motoristsConsequences of getting caught without insurance can be very serious depending on which state you are in. Some states will impound your car and you can only take it back when you have proof of insurance. There will be fines to pay as well and there could even be jail sentence if you caused an accident or this was your second offence.

Then, you will have to explain it to every company that you will get quotes to be insured. One of the first questions they ask before they give you a quote is if you are currently insured or not. And if not, when was your last policy. There is no mistaking that they don’t like people who let their policies lapse. In the best case scenario you will have to pay a little more for this choice.

Furthermore, you may not be able to claim for damages if someone else hits your car in some states. A few started adopting no pay no play laws that doesn’t allow uninsured drivers to make a third party claim on other motorists’ policies. It is only fair that you cannot make a claim on other if they cannot make on you. The table can quickly be turned around to penalize you. Think this if you don’t think about all those poor people who may not be paid after you cause an accident.

You cannot buy a policy without the third party auto insurance liabilities coverage. This means you cannot insure your automobile if you don’t insure third parties with a liability cover. Maybe you don’t care because your car is old and not worth a lot of money. Otherwise, you will lose your investment on it if it is totaled or you will have to pay the damages out of your pocket.

So far, you may have only considered one angle of the problem, saving money. But there are a lot more to driving without insurance than saving money. And there are many other ways of reducing your premiums.

It is always important to have a good credit score. This will come up and affect your life in many aspects of it. They are looking into your finances when you apply to rent an apartment, apply for a job, get a credit card, mortgage and insurance. Really, there is no point in arguing that what is your finances got to do with how you can do your job or auto insurance. This is how it works and they love the comfort of knowing that you are paying your debt in time.

If you are not taking care of your responsibilities, bills then maybe you are not reliable enough. As far as auto insurers concern they think you don’t deserve discounts. They may be right and you will start playing up with the premium installments halfway through your term and they will have to cancel it. Or perhaps they will charge you extra for poor credit and they will require you to pay up front. Normally, premiums are due at the time of inception and companies offer credit line when they allow you to pay by installment. When you are considered unreliable they wouldn’t want to offer you a credit line.

You see how quickly we can move from one late bill to a serious financial difficulties down the road. For example, you may either not get a mortgage with bad credit or you may be charged couple points extra interest. Think how much would that be over the terms of a 30 year mortgage. It could be thousands of dollars that you have to work harder to pay for.

The same applies to your auto insurance premiums. You can get much better rates when you have a perfect credit history. So, why pay more if there is a way of getting better prices? You may ask how much could the difference be. We estimate that you could get about twenty five percent less with some companies if you had a perfect score instead of a poor one. This would be different depending on the company you are applying for a quote.

Therefore, you would be aiming to find a company that cares a lot about credit history when you have a good score. And you would be searching for a company that doesn’t give a toss about the fact that your credit score isn’t great. This is another way of managing the damages that is caused by slack financial control. It is all about staying within your budget and handling your money affairs efficiently. There are a few blogs that can help you deal with these problems. You never know you could come out pretty savvy at the end by following one of the programs.

Generally, you can stay out of trouble and deal with small hiccups in your life better when you have some savings. Everyone can have a patchy period when you are changing jobs or looking for a new one. Having some savings will allow you to smooth the transaction better. This is something you may need to work on and put a little money aside.