Home » Finance » Insurance

Car Insurance - Pitfalls Avoidance

Jul 17, 2008
There are many pitfalls of car insurance: Having too little, having too much, hoping you can get by without it, and thinking you're insured when you're not. These are the most common pitfalls and will be explained in detail below.

Insufficient coverage. \"State minimum required coverage equals to sufficient coverage\" is a common thoughts in drivers' mind. They never think how the minimum required coverage is decided, simply the amount the state wants you to have. The state has not considered drivers' personal situation before setting it. If you own a home, or other substantial assets, the minimum car insurance cannot protect your home. Therefore, it is best to talk to your accountant or your income tax preparer before deciding the limits of your car insurance.

If you are in an at fault accident and your insurance coverage does not sufficiently cover the damages, either medical bills of the injured parties or property damage repair or replacement, you are personally responsible for the balance of the bills. That is not to say that the injured party can take your home, but it may require that you borrow against the equity in your home in order to pay the bills for which you are responsible.

Buy too much insurance. Some drivers want to be carefree and simply decide to buy the maximum limits of all available coverage. This may not be a bad choice, only if you will not be stunned by the sky high premium.

Neglecting car insurance. This is likely to be the biggest pitfall for car insurance. many drivers, neglect the state's car insurance insurance requirement, are still driving on U.S. roads without car insurance. 57% of vehicles in Florida are accountable for being owned and registered in the state, while without car insurance. And you need to provide the minimum required car insurance proof in some states before getting your license plate.

Some vehicle owners deal with the states requirement by purchasing the cheapest required car insurance when their licenses needs to be renewed. They simply lapsed the policy right after they have provided the insurance proof and have the licenses being renewed

Misunderstanding the coverage of insurance policy. It happens more common than you think, and most commonly seen in divorce cases, When you are planning to be separated with your partner, car insurance is likely to be considered at low priority. Rules on car insurance for divorce caess are different between states. Some states allow the owner of the car insurance, who apply for the insurance policy solely, to remove their partners from the policy coverage, without informing them.

There are still lots to pay attention in car insurance. Therefore, it is best to have regular contact with your insurance agent, adjusting your coverage when your situation changes, like buying a home, and you should also review your insurance coverage before renewal.
About the Author
To find out exactly how I got car insurance , visit my website about cheap auto insurance
Rating:
Please Rate:
(Average: Not rated)
Views: 175
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources