Don't Think Continuous Car Insurance Is Important? Think Again!
Cancelling your continuous car insurance when the finances get bad is one of the foolish ideas that you have ever thought
. Not to mention that you will be driving illegally by dropping your required liability insurance.By driving without any insurance you are setting yourself up for an additional driving violation ticket if you are pulled over by a police officer for any other reason. On top of the fine for the ticket, when you do get insurance again you will be paying more for your premiums than you were when you dropped your policy. After all of these new expenses you will find that you really haven't saved yourself very much money from stopping your insurance coverage and creating a gap with your continuous car insurance.
Think About Losing Your Discounts
Having continuous car insurance with an insurance company could qualify you for discounts. The discounts are essentially a thank you from the insurance company for staying with them and is usually called a longevity credit. Any credit that you are offered by an insurance company for basically doing nothing is a positive thing as it lowers the amount of premium that you have to pay.
However, if you cancel your insurance you will lose this credit as it establishes a lapse in your continuous car insurance coverage. Even if you do return to the very same company, you still have to start at the beginning of the required time frame in order to qualify for it again in the future.
Think About It Hard If You Live In California or Texas
Both the states of Texas and California electronically track their drivers through a database. Every company that writes insurance in these states have to report to the database each time you drop or purchase insurance coverage.
If a company reports that you have ended your continuous car insurance coverage, you have a certain time period to replace that coverage with a new insurance policy. If you don't get new coverage you are required to turn in your plates and stop driving the vehicle that is not insured. Failure to comply with either one of these steps will end in suspension of your registration and fines.
If you reside in another state don't think you arefree and clear to not have insurance, each state has their own set of fines for failure to keep continuous car insurance.
Think About Owing Money For The Rest of Your Life
Cancelling continuous car insurance is not just a bad idea legally, but financially as well. Consider the situation if you were to get into a car accident. Not only are you probably going to receive a ticket for not having insurance; if you are at fault, you are going to have to pay for all the damages out of your own wallet. Very easily there will go all of the money you saved by not keeping continuous car insurance on your vehicle, plus more.
The price of damages in an accident can reach amounts that are staggering, especially of you caused an accident that had injuries. Medical bills and damage awards for pain and suffering quickly increase the total cost of an accident; all of which you will have to pay on your own as you have no insurance.
Even if the other person's insurancecovered the damages initially, they will take you through subrogation and even court if they have to. The word subrogation means when an insurance company goes after the party that was responsible for causing the car accident. They go after them to get the money that they paid out for the accident and also the deductible amount that their client had to pay.
While they will allow you to make payments on the cost of the accident, you will most likely be trying to pay the accident off for the rest of your life.
Think About Being Placed In High Risk Insurance
After you have had to deal with all of the fun of being caught with no continuous car insurance, you get to go out and purchase insurance again. But, this time you are looking at having to most likely have SR-22 insurance. Not only does this get you put in high risk insurance, which is much more costly than the normal car insurance market, it also adds an additional surcharge on your premium.
Still think that dropping your continuous car insurance is such a great money saving idea?
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