subject: Mandated by Law, Car Insurance is not Optional [print this page] Mandated by Law, Car Insurance is not Optional
Driving without car insurance is against the law. Though you may think the risk is worth it, it is not, If any accident occurs, you would be putting your finances in jeopardy of loss as well as jeopardizing your driving privileges leading to a host of other unnecessary problems. Insurance is a step to protect not only yourself and your car, but other drivers as well. Insurance was mandated because when it was an option, many drivers suffered loss that was not recovered or took an extraordinary amount of time before it was recouped.
Personal factors are considered when purchasing insurance. Cars that belong in the high-risk category can price your insurance very high or even put you at risk of being denied coverage. Your personal driving record may also be a major consideration.
Vehicles that may fall into the high risk category are really expensive and luxurious cars such as Jaguars, Bentleys, and sports cars. These cars are those types of cars. You may need to refer to an insurance company before you purchase a car that you really like if that car is going to put you in the high-risk category.
Age may be just a number but when you are talking about driving and insurance, the more experience you have the better. If you are not over 25 years of age, you will be paying a higher premium because this puts you in the high-risk category as a driver. The number of years behind the wheel may make a difference as well. It may seem that young drivers are penalized because of their age but studies done by insurance companies show that the development at certain ages puts them at risk.
Other considerations relative to Orange County may be the issues of who may have access to the car that hold a valid driver's license. Even though the persons living with you may not be on your insurance policy, if they are teenagers and have a valid license to drive, the insurance you purchase may be higher. The fact that they can take the car, with or without your permission, is the issue that adds the risk. Also, the areas where you have to park your car may also put a hike in the cost of your insurance. Areas that are at risk of theft and vandalism may increase the rates because it is likely you may need to use your insurance.
There are options for decreasing the price of insurance for yourself. Purchasing liability insurance only may be an option for a car that is not a new financed car. Most finance companies require full coverage for a new car being financed. Older cars, especially cars over ten years old, may give you the option of liability only. Also, when you own the car, the option for liability only coverage may be available. However, you must have the title to the car, you must have actual ownership.
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