I Just Want Liability Only Car Insurance – How Much Is It?
Reader question:
Right now I’m purchasing a car through a finance company. At what point am I able to get rid of the comprehensive and collision car insurance coverage and take it down to the minimum personal injury and property damage liability?
Isabel
That’s a good question, Isabel.
It really depends on what it says in your vehicles contract. For most vehicles, and probably all vehicles, which are purchased with the add of a financing institution such as the car dealer ship or a bank, extra coverage for comprehensive and collision, and sometimes gap coverage, is required until you have finished paying of your loan from the financial institution and they no longer have the risk of you ending your payments with them when the car has not been entirely bought. There are some dealer ships and banks that are more strict about this than others, but for the most part the best idea is for you to understand what your contract says and, if you have any questions, for you to just call up your dealer ship or where you got the loan from and ask what the policy is in regards to dropping your car insurance coverage for your new vehicle.
For the most part, though, in order for you to get rid of your extra required coverage on your vehicle, what you must first have is the pink slip noting that you have paid your new vehicle off completely, and a title in your hand allowing that you are the sole owner (unless you have a co signer, of course) of the vehicle in question. If you don’t have this, then you are in essentially a joint agreement between yourself and the financial institution that financed your purchase of the car. What’s yours is theirs and what’s theirs is theirs. If you decide to drop youtr coverage before the time comes up, they could either be surprisingly nice, or they could assert their ownership and repossess this car. Most financial institutions will try to get you to get insurance on your own first, because it is a lot more beneficial to them if you keep making payments on your car than it is if they have to sell it for a very depreciated price, so you probably wouldn’t have it repossessed right away.
Consider that it is not only in your vehicle insurance company’s interest, or in the financial institution financing your car’s interest that you have insurance on your new vehicle, but also in yours. It protects your health, your vehicles, and most importantly, your finances and credit report. While it’s good to have liability for the case of you causing an accident, the same important must be put on the other cove rages, because you can be in just as big a problem for having no insurance on a vehicle that you still haven’t paid off.
If you really are having a hard time trying to pay your car insurance coverage premium, then you should try alternative ways of making your bill smaller. You can try raising your deductible and asking for discounts, as well as getting instant online car insurance quotes from different companies.
Cheers,
Fashun Guadarrama.
Easy And Free Auto Insurance Quote Comparisons
Reader question:
If I go driving and I am not covered by a car insurance policy, what will happen? Can you guys just give me a few insurance quotes so I can compare rates and see which auto insurance carrier is best for me?
Glenda
Great question.
To be honest, it all depends on whether or not you get caught. Many people think they won’t. I know I made the terrible mistake before of driving without car insurance and with an expired registration, and so I definitely did, and it was a world of problems. Police officers can’t tell right out as you’re driving past them if you have car insurance, but since it is against the law, if you do something else, no matter how small, and you get pulled over, you could get written up for failing to maintain your financial stability.
If you are simply pulled over and caught out, then you’ll likely get hit with a ticket fine, and you’ll have to either plead guilty or no contest. You might have your license suspended immediately in some case, although usually you won’t. However, getting caught without insurance usually contributes to points that, if you get enough of them, will lead to the suspension of your license, and it costs thousands of dollars and tons of time to get that reinstated. Why waste that when it’s so easy to get a free auto insurance quote?
If, while uninsured, you get into accident and are the cause of property damage or personal injury to the other party, then you are way out of luck. Not only will you get all of the above, but you will also have to pay on your own any of the repair expenses for the other person, or, if an injury is involved, all of their medical bills.
Cheers,
Fashun Guadarrama.
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