Drive Insurance

Drive Away Insurance for the Short Term

Posted on December 27, 2011 by JamesGreen

New Cars and Insurance

There’s nothing quite like the thrill of buying a new car. However, if you don’t have insurance for the car, the thrill can suddenly turn into a nightmare if the car lot won’t let you take delivery of the car. Typically, cars that are finanaced must have car insurance before they can leave the dealership. So, what do you do if you have your dream car but haven’t gotten around to the the insurance yet? Drive away insurance is the answer that will solve your problem.

What is Drive Away Insurance

Drive away insurance is an auto insurance that is only in place for a short period of time, usually between one and twenty-eight days. This type of temporary binder allows the car to be legally and safely driven until a permanent policy can be selected and purchased. This period of time lets you shop around for the best car insurance policy rather than having to take the first one you find simply to have insurance.

Restrictions

Because drive away insurance is a temporary insurance, it has more restrictions than regular coverage car insurance. These restrictions are for the protection of the insurance agency who is taking a bigger risk than permanent insurance companies. Some of the restrictions include:

Age: Most agencies that have drive away policies have a minimum age. This age varies from one agency to another but is typically 23.
Driving Record: People with a history of driving incidents in the past year may not qualify for drive away insurance.
Background: Some drive away insurance agencies check backgrounds to make sure there are no felony incidents such as theft or drugs.These agencies have to make sure they are dealing with legitimate drivers who are simply needing time to get a full policy in place.
Vehicle: Many drive away agencies have certain vehicles they won’t insure or that they specifically insure. For example, some drive away agencies specialize in antiques and show cars and insure them for the time it takes to get them from one place to another.
Limitations: The policy will have more limitations on what it covers than a full policy will and so you need to read it carefully and understand what is and what is not covered. For instance, drive away insurance does not typically cover anything that happens if the vehicle is being used for something other than what the driver listed when the policy was purchased, such as a business trip when the policy states recreational use.

These are just a few of the requirements that an agency may have. Each agency will have their own criteria along with state laws that they must follow.

Who Needs Drive Away Insurance?

It may sound strange to think about buying a car insurance policy that only lasts for one or two days. However, this is the perfect type of policy for many people or scenarios, such as:

Buying a car in another state and driving it home. You need a temporary policy to drive it home so that you can get it fully insured;
Buying a new car and not having insurance before the purchase. Drive away insurance lets you make your purchase and then find a policy you want permanently.
Taking an show car to a show. If you don’t drive your car and have it stored but then decide to take it to a car show, drive away insurance is the ideal way to insure the car.
Buying a car at the auction: If you are thinking of reselling the car or simply don’t know what you are going to do with it and you need to get it home, drive away insurance can help you out.
Borrowing or lending a car: If you are going to drive someone else car while yours is in the repair shop, a drive away policy can provide you added protection. On the other hand, if you are going to lend your car to visiting family, they can purchase a drive away policy to cover their driving time.

There could be many more scenarios that would be ideal for using drive away insurance. It is a convenient way to get insurance on a car in a hurry for a short period of time.

Better Alternative

Drive away insurance is a better alternative than risking driving without insurance, regardless of how short or long the trip is or how long the insurance is needed. Many people think that a few miles from the auction to their house won’t hurt anything; however, accidents can happen anywhere, anytime. It is much better to be safe than sorry.

If you need insurance for a few days or a few weeks, drive away insurance is the answer you need. You can rest assured that you will be legal and safe until you have full insurance on the vehicle.

Posted in Types | Tagged auto insurance, car insurance | Leave a comment

Can You Drive Without Insurance?

Posted on December 17, 2011 by JamesGreen

Car Insurance

If you have ever been in a car accident you know that one of the first questions asked concerns your car insurance. It is also one of the first things a new driver learns as they start out in the world of driving is the need for insurance. Many newly licensed drivers wonder if they can drive without insurance. The answer is hot as simple as yes or no and will be explored in the information herein.

State Requirements

Most states have laws concerning car insurance that must be followed. In some states there are specific insurance types that every driver must have, typically liability. Some states may also have minimum coverage amounts in order to legally drive. If you live in these states then your answer would be yes, you do have to carry car insurance.

If you choose to drive in these states and do not have auto insurance you are leaving yourself open for legal and financial troubles. If you are stopped for any reason and you don’t have proof of insurance you will be fined and if you received multiple fines, your driving privileges can be suspended. Many states won’t issue a tag for an automobile if the owner doesn’t show proof of insurance when they register the car.

On the other hand, there are some states that have an alternative to car insurance. This alternative is a rather large fee that is paid to be able to legally drive without having to carry car insurance. However, if you are involved in an accident and you are at fault you will be in a financial nightmare.

Accidents and Insurance

Car insurance is designed to protect you in the event of an accident. If you are in an accident, there are many different financial obligations that having insurance can help with, including:

Car: If your car is damaged and needs to be repaired, your insurance may cover the damages, if you have the right policy options, such as comprehensive. If the accident is your fault, your insurance will also cover the other parties car.
Medical Bills: Many car accidents come with injuries, some quite extensive. The cost of medical car can be devastating; however, car insurance has medical coverage up to the amounts you specify when you purchase the policy.
Lost Work Time

As you can see from these items, car insurance helps to cover the financial aspect of car accidents. If you choose not to have car insurance you can be sued and lose much more than the cost of an insurance policy.

Special Insurance

If you are asking about not having insurance because you think you can’t afford it, you should realize that you can’t afford not to have it. If you have special situations that make you a risky driver and you need help with affordable insurance, there are many agencies that specialize in risky drivers. Some of the scenarios that might warrant the need for a special auto agency include:

DUI – Drivers with DUI’s on their driving record typically pay a much higher premium which often makes them simply driver without insurance. In an effort to help prevent this, there are many car insurance companies that specialize in DUI drivers and offer options for making them legal.
Multiple Wrecks and Reckless Driving Records: Driving records that have gotten out of hand due to wrecks or speeding tickets can cause insurance costs to skyrocket. Rather than have drivers on the road that have no insurance, some companies have programs that help drivers with bad records obtain insurance.

Instead of trying to skirt the law and drive without insurance, you should do the necessary research and find options that will allow you to drive and be protected.

Budget for Insurance

Instead of having to ask if you can drive without insurance you should make sure that you have included it in your budget. You can find reasonable car insurance at many insurance companies and if you simply have to get the basics in the beginning, its still better than not having any insurance. The cost of not having insurance can be much more expensive than the insurance policy would be. If you look around, you can find companies that will allow you to make monthly payments and possibly even start out with no down payment.

Asking if car insurance is necessary should not ever be a question that is asked. If you choose to drive without car insurance you are putting your car, your home and your assets at risk. It only takes one accident to send a person into bankruptcy court if they don’t have insurance. If you think you are a great driver and you won’t have any accidents then you should still consider the other five million drivers on the road that can cause an accident. If they happen to not have insurance, the insurance you have will take care of your car and medical bills. Simply, put, why would you even consider driving without insurance?

Posted in Basics | Tagged auto insurance, car insruance | Leave a comment

Tips for Purchasing Insurance for Driving

Posted on December 7, 2011 by JamesGreen

Important and Required

Insurance for driving cars is considered a requirement in practically every state. Car insurance is a necessary part of life if you plan to drive a car and don’t want to have your personal assets attacked in a lawsuit in the event of an accident. Purchasing car insurance is something that should be taken seriously with all options considered before the final decision is made on a policy. The tips included herein should provide a good starting point.

Coverage

One of the first things you should do, before you even start looking for quotes, is to decide how much coverage is needed. There are several factors that should be taken into consideration when coming up with an amount, including:

State Requirements: Every state has different requirements when it comes to car insurance coverage. Some states have policy minimums and certain types of insurance that must be carried, such as liability.
Car Value: If the car is new you should have full coverage, including gap insurance to help cover any shortages should the car have to be totally replaced. If your car is older you may want to opt for less coverage. The idea is to have enough insurance to fix or replace the car should it be involved in an accident.
Drivers: If you have young drivers in the home you may want additional coverage due to the additional risk factors.

Once you know how much coverage you think you need you can start researching insurance companies and what they have to offer.

Driving Record

Some of the questions on the automobile insurance policy are about your driving record. These questions are also used to determine the cost of the insurance. It is a good idea to get a current driving record that all of the answers are accurate. It doesn’t pay to stretch the truth on these questions because the insurance company will obtain the records and then adjust your policy accordingly. If you have the information correct from the beginning you can get an exact quote and not be surprised with increases down the road.

What to Compare

It is important to make sure that you compare the same things on every policy that you research. Keep a list of the companies that you research with the answers that you find during your research. Some of the things that should be compared include:

Annual cost and payment options available
Benefits offered, such as AAA roadside service
Discounts available, such as age, safe driving, or multiple policies

Once you have made your comparisons you will be ready to talk to the agents that work for the ones you like the best or that have the best rates.

You should be prepared to ask the insurance company questions to help you decide which insurance company is the best one for your needs. Some of the questions you should ask include:

Does the company have 24-hour customer service in the event of an accident?
What is the average length of time it takes to get an adjuster for an accident?
How long has the company been in business?
Are there local agents and offices (if you found the company on the Internet)?

Your car insurance is a form of protection for you and your family and you should be very particular about choosing an insurance company and policy.

Where to Find Insurance Quotes

If you have determined how much auto insurance you need and are ready to move ahead with the research and choosing of a company, there are many different places that you can get insurance quotes such as:

Internet: This is one of the best places to start and then if you want to talk to a live person you can call the company you choose. There are many websites that offer insurance quotes from multiple companies with only one application to complete. This lets you see many prices and packages at one time.

Phone book: This takes much more time than the Internet but is still considered an option by people who don’t use the Internet. You have to call each company and ask them for a quote. You should be prepared to answer a lot of questions before you can get a final quote.

Friends and Family: Ask friends and family members where they have their cars insured and if they are satisfied. Follow up with calls or visits the insurance company’s websites.

These are a few of the methods you can use to find insurance companies and get quotes on a new insurance policy.

Insurance for driving cars protects you, your car and family and other people on the road as well from being destroyed financially as the result of a car accident. The coverage should be carefully chosen with all possible scenarios factored into the research.

Posted in Tips | Tagged auto insurance, car insurance, Car insurance tips | Leave a comment