Car insurance is a type of insurance that is required by a driver to operate their motor vehicle. Essentially, you pay a monthly premium that your insurance provider determines before signing on, and then you will be provided with certain protections.
For instance, car damage may be covered if you get into a car accident. Depending on your coverage, your insurance provider may also cover the damages incurred to other vehicles and property damage in some cases.
Depending on what is included in your coverage policy, medical expenses and liability costs may also be covered.
There are also many types of insurance, including uninsured automobile coverage, accident benefits, liability, direct compensation, comprehensive, specified perils, and all perils. Car insurance has the added benefit of providing peace of mind to you and your loved ones.
Below, we will discuss some consequences of not having car insurance.
What are the consequences of driving without car insurance?
You will be subject to several fines and penalties if caught driving without insurance. You may be fined several thousand dollars; if seen a second time, your fine maybe twice or thrice as large.
You may also have your license suspended for up to a year. Fines and penalties will vary from region to region. Depending on where you reside, you may even have to pay an additional surcharge to your fine.
Moreover, you may have your motor vehicle impounded for several months. You will not be required by law to have collision insurance if you own a car but opt not to drive it.
However, we suggest you at least obtain comprehensive coverage, as it will protect you if your car is stolen or damaged by a fallen tree or Act of God. Also, please ensure that your insurance coverage is up to date.
Your insurance needs may change as you age. Life changes, such as children becoming old enough to drive, may also necessitate that you make changes to your coverage.
If you have insufficient coverage, you will be responsible for your medical bills and repairs in the event of an accident. Furthermore, if the authorities and court of law determine that you were responsible for the accident, you will be required to pay the medical expenses of the injured driver.
You will also be responsible for the costs required to repair their vehicle and may even need to compensate the injured driver for any wages they may have lost due to their injuries.
How to Lower Your Auto Insurance Costs
You should shop around to get as many quotes as you can. Asking for higher deductibles may also allow you to save money on your comprehensive and collision coverage.
In addition, if you have an older car, you may want to consider reducing its coverage, as the coverage may not be cost-effective. Buying auto coverage and homeowners insurance from the same enterprise may also be fruitful.
Your provider may offer you a discount if you obtain two or more insurance products from them. Maintaining a stalwart driving record will also help you lower your insurance costs over the long run.
When you have an impeccable driving record, you demonstrate that you are a safe and reliable driver and therefore are less of a risk when on the road. Taking defensive driving courses and investing in anti-theft devices may also help you lower your monthly premiums.
By not having any accidents or moving violations and by maintaining a low annual mileage record, you will be rewarded for your good behaviour and safe driving measures.
How to File Your Insurance Claims
You need to determine if filing the claim is worth the trouble. How long will it process the paperwork? Who was at fault? Filing a claim may cause premiums to go up. Is it worth the additional cost?
If you decide to file, you must have all the necessary documentation.
Your report will need to describe the injuries incurred and the incident’s location, time, and date. You will also need to provide your policy number, license plate number, year, make, registration, and automobile model.
You should also not wait until the last minute to file a claim. File as soon as possible to help reduce the risk that your lawsuit will be denied. You should also expect a call shortly after filing, as your insurance provider will have several additional questions.
You should also fix your car as soon as possible. If your claim is denied, you will have had to pay for the repairs anyway. If the claim is accepted, your insurance provider will compensate you for your expenses.
Filing an auto insurance claim is something to take very seriously. Please take into consideration all possible factors and scenarios before you file.
The Price is Right
Instead of paying fines, putting some of that money towards your car insurance policy makes sense. A car insurance estimator can be used, free of charge, via the internet. It is designed to help you ascertain which insurer is best for your lifestyle and budget.
Car insurance is mandatory and vital for all car owners. However, there are many types of car insurance to choose from, with certain types being required while others are completely optional.
Remember to compare and contrast various providers in the market to help you choose the right provider for your unique needs.
Author
Jessica Coates is a blogger in Toronto. She graduated with honors from the University of British Columbia with a dual degree in Business Administration and Creative Writing. Jessica Coates is a community manager for small businesses across Canada. When not working, she leisurely studies economics, history, law and business solutions.