17 Mar Top 5 Bad Decisions That Affects Your Car Insurance
Having the right amount of coverage for auto insurance is very important. Auto insurance prices can increase due to many factors. Auto insurance is there to protect yourself, passengers, and other drivers. Insurance is not only required by law, but serves as an investment. Drivers are always searching for the best coverage with the lowest rates. Here are five common reasons that can have a negative effect on your auto insurance policies.
1. Not notifying the insurance company of a teen driver: Adding a teen driver can be costly because of the risk a young and inexperienced driver poses. Insurance companies need to be notified of new drivers being added to the policy. It might be more expensive, but in the long run it will save you money if the driver gets in an accident. Failure to notify your insurance company could result in losing your policy.
2. Lending your car to a friend: Most insurance companies allow a friend to drive your car for a short time, but if it is an extended period then the insurance company must be notified. Different policies vary so it is best to check with your insurance agent.
3. Using your personal vehicle for delivery: Many auto policies exclude coverage if you are using your vehicle for any type of delivery reason such as pizzas, newspapers, mail, etc. A delivery job requires that your vehicle be on the road for extended periods which increases the risk of an accident.
4. Buying a new car and not informing your insurer carrier: Buying a new car is exciting, but can be a hassle switching the information from one car to another. That is why it’s best to inform your insurer as early as possible to meet any deadlines. Make sure you don’t drive off the lot without some type of auto coverage.
5. You sold your car, but still have the title and carry insurance on the vehicle: Once the vehicle is sold, the owner needs to sign the title over and inform the insurance company that you no longer own the vehicle or need insurance on it. If you are still carrying insurance on the vehicle or haven’t signed the title over then you could potentially still hold liability if the car was in an accident. It is best to inform the insurance company as soon as possible so you are not liable for other driver’s actions.
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