June 26, 2010

How Periods Of Being Uninsured Affect Future Insurance Quotes

Research indicates that over 16% of all Americans drive without car insurance; these uninsured periods are against the law. Even though all states require liability insurance, with the exception of New Hampshire and Wisconsin; drivers continue to disregard the law by driving without the appropriate automobile coverage. Laws mandate that drivers carry the basic insurance coverage. This would pay for any damages caused in the event of an automobile accident. Drivers sometime choose to drive without the state required liability insurance while they are unemployed or after allowing the policy to lapse. Paying the monthly insurance premiums may prevent some drivers from purchasing even the most basic auto insurance quote. However, if an accident occurs during these uninsured periods no money is available to pay for damages.

Being involved in an accident during uninsured periods can be a logistically expensive nightmare. If there is no policy in place to cover medical expenses and damages, someone must pay. Research indicates that an uninsured motorist not only affects the uninsured, but society overall. In many cases, even the person who was not at fault can be sued for the damages caused in the accident. Horror stories are told of escalating hospital bills, lawsuits, lost wages and no money to pay. Because an uninsured driver has no coverage, the insured driver must pay for their own rental car, hospital and all other expenses. Even avoiding drivers during uninsured periods can be a tricky proposition. There is no way to determine whether a driver is uninsured or not. Ironically, the only method for knowing whether a driver is insured is to contact their insurance agent after being involved in an accident. Claims become complicated when involved with an uninsured driver.

A competitive auto insurance quote is based on the past record of all drivers. An experienced insurance agent can explain how uninsured periods can negatively affect their insurance rates. An understanding of the consequences of driving without insurance coverage may enlighten drivers to its potential repercussions. Most auto insurance agencies are linked to their states' motor vehicle database. The Department of Motor Vehicles (DMV) randomly checks their database for car insurance violators. When the system identifies an uninsured motorist, a letter is generated, informing the motorist of penalties and late charges. The DMV then alerts the insurance agency, causing the uninsured premiums to increase. An auto insurance quote can assure consumers that they are meeting the state required insurance coverage.

Going without insurance is a huge risk, especially in an economic state such as we're in today. Being uninsured can be costly for both the uninsured driver and anyone else involved in the accident.