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The Pitfalls Of Having Car Insurance

Apr 27, 2008
Every State in the USA requires that one owns car insurance before they can drive a motor vehicle. There are disadvantages to this, despite the benefits. Individual states have their own problems, but there are some general problems of note.

One of the disadvantages of insurance ownership is that the quotes for the price you pay are partially based on your credit rating. In California, for example, some insurance companies will charge much higher rates for people with substandard credit. You might never have gotten a ticket or had an accident, but the higher rates will still affect you.

Another disadvantage, though less commonly seen, is that sometimes people wreck their cars on purpose to that they can avoid responsibility for them. They can scam the victims of their 'accidents' with excessive medical bills. Being a good citizen then makes one responsible for the other person's behavior.

Shopping around for car insurance can pay for itself. You shouldn't buy the first policy you come across. Sometimes, when car insurance agents learn that you've been offered a better rate, they'll try their hardest to remain competitive with the better policy. Some people get as much as a ten percent discount this way.

Be sure that your policy meets your state's requirements for insurance. Some states require higher coverage on personal property or medical liability. Others require certain minimum values for uninsured or underinsured motorists.

Some insurance companies are licensed only to practice in certain states. If the insurance company is not licensed in the state where you live, you cannot legally obtain insurance from the company. This is particularly important in the case of insurance companies that offer online quotes. Although most companies will know, it pays to check.

If you have difficulty locating an insurance agent, or have just moved to town, ask around. Friends or colleagues may be able to refer you to a wonderful agent who can be very effective in helping you obtain the best rates. Don't forget to ask about multiple policy discounts as well if this applies to you.

It's best to shop around to get the best deal possible. But it is also important to remember that it's not always a good idea just to go for the cheapest rate you can find. You may find that it's better to spend more money to get a policy from one of the bigger, better-known insurance companies.
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Get your free car insurance tips and advice on how to get Cheap Car Insurance . Auto Insurance Los Angeles Cheap Auto Insurance guide will provide you adequate information on getting the best car insurance.
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