The auto insurance giant GEICO is all about their phrase “15 minutes could save you 15% or more on car insurance.” While they surely have numbers to support this and will guarantee you to save money, this may give the wrong idea to some about auto insurance. While this is all it should take to get your insurance policy completed, you should consider some potential options for coverage before buying your auto insurance policy. For instance, did you know that there are an average of 160 accidents per day in Florida that involve uninsured drivers?
The story repeats itself all over the country on a daily basis and it is one that is familiar to auto insurance liability adjusters across the map. You may be the next one involved, just driving home after a Friday night out with the friends and you are pulling up to stop at a stop sign and suddenly you get hit from the rear. As you get over the shock of what has just happened you look behind you to see that the other driver is leaving the scene of the accident. There is no way to identify them or know if they were even insured at all …now all the cost is on you.
According to the National Highway Traffic Safety Administration (NHTSA) about 13% of accidents nationwide between 2003 and 2006 involved a hit-and-run driver. Over 80% of those accidents caused damage to the vehicle of the victim and that victim would have to pay for the damages to their vehicle or any injuries to themselves out of their own insurance coverage. This is the importance of uninsured motorist coverage.
It is estimated that one of every five drivers on the road will be involved in a traffic accident this year, meaning you have a 20% chance of being in an accident. Traditionally, insurance is the transfer of risk from you to someone else. The “risk” is financial because being involved in an auto accident can be very expensive. With the access to auto insurance in a quick manner with the internet these days there is no reason why you shouldn’t have insurance. As a matter of fact, all 50 states require minimum liability insurance coverage on your vehicle (this is the coverage that pays to repair someone else’s car should you be responsible for their damage.
With all this being said, so many people just don’t understand how insurance works and where your “premium” or “rate” comes from. It happens like this: you go online and answer some questions about the vehicle(s) you are looking to insure and how you want to insure them. You will also provide information about yourself, like your credit information and driving record. This information will be passed on to the “underwriting” department of the insurance company and they will determine what their risk is to insure you.
The greater the risk to the insurance company, the more you will pay, and vice versa. Different companies will evaluate risk in different ways, so getting multiple quotes for your auto insurance is the way to go. Some insurance companies will put more emphasis on your driving record, others will emphasize your credit history, and others will rely on other information. Your responsibility to is to get as many quotes as possible to verify that your situation is handled with care.
The absolute worst thing that can happen with your insurance policy is that you forget to pay or avoid paying and your coverage lapses. If you don’t pay, they won’t pay and you will be up a creek when your accident happens. If you are not insured at the time of your accident you will be paying for everything out of your own pocket.
Many factors can impact the rates you pay for your auto insurance. For instance, did you know that some states pay a lot more on average for auto insurance? The District of Columbia, New Jersey, Louisiana, New York, Florida and Massachusetts tend to pay more on average for their automobile coverage according to the National Association of Insurance Commissioners (NAIC). Many factors could weigh in to this from the cost of labor to the cost of vehicles and so on.
In addition, did you know that sports cars like the Porsche 911 and Dodge Viper will pay more on average for auto insurance than drivers of family minivans and SUVs like the Chrysler Town and Country and Jeep Wrangler?
Regardless of what you hear on the television, radio or internet, staying with an auto insurance company for several years won’t automatically lower your insurance premiums. In fact, shopping around frequently will allow you to continue to check if your situation is viewed better by one insurance company than another. What you need to know is that getting insurance shouldn’t be a consideration but a sure thing that has to be done. In addition, getting your auto insurance quote online will save you time and money, so what are you waiting for? It takes only minutes to get your free quote, click here!