When you own a car, you're legally obligated to maintain insurance coverage for it. If you own the car outright, meaning there is no finance company, you can get away with having liability-only coverage on it. However, if you are financing your car, you must have full coverage, meaning it's insured for collision damage. In most instances, if you continue to make your payments on time, you'll continue to have coverage. If you maintain a clean driving record, your premiums won't increase. However, if you get into an accident that's your fault, or you make some mistakes along the way, you could see your premiums increased. Worse still, your insurance company may cancel your coverage altogether. To protect your car insurance, and to keep your rates affordable, here are three steps you should follow.
Keep Your Insurance Even When You're Between Cars
If you suddenly find yourself without a car, you may think that it would be a good idea to drop your insurance coverage. After all, you don't have a car anymore. Unfortunately, that's the worst thing you could do. Dropping your insurance creates a gap in your coverage, which means when you try to insure the next car you purchase, you won't be able to say that you've had continuous coverage. As a result, you'll end up paying more for your insurance. Not to mention the fact that you will have given up any perks you may have earned from your previous insurance carrier for being a long-term customer. Protect your rates by maintaining coverage while you wait to purchase another car.
Be Sure Your Teenage Driver is Covered
If you have an insurance policy that provides coverage when you loan your car out to another driver, you may think that your teenage driver is covered. Unfortunately, that's not the case. Because your teenage driver resides in your home, you'll need to add them to your insurance policy before it will be safe for them to drive your car. Failure to add them to your policy could leave you without coverage in the event of an accident. Not only that but it could cause a dramatic increase in your premiums, or worse. The insurance company may cancel your insurance policy altogether.
Don't Use Your Personal Car for Business Purposes
If you've been using your personal vehicle for business purposes, such as for food delivery or ride-sharing, you could be putting your insurance premiums at risk. Most auto insurance policies don't cover accidents that happen during the course of business, especially if you haven't notified your insurance company. If you're going to be using your personal vehicle for things like ride-sharing, be sure to notify your insurance company so that they can provide you with the proper coverage.
Contact a company like JSE Insurance for more information.
After we had kids, we realized that we needed to up the ante on our insurance coverage. While we had a policy in place, I knew that we had to do something to make sure that we were protected in any instance, which wasn't the case at the time. I began talking with different brokers about what we could do to improve our coverage, and they had some really great suggestions that seemed to help. This website is here to help other people to know how to purchase insurance, and what kinds of policies would work best for your special family.