March 14, 2012

What To Understand About Seasonal Automobile Insurance

Teen drivers, business owners and other seasonal drivers often look into special seasonal automobile insurance policies to save money. Seasonal policies restrict coverage for certain months of the year, scaling back to the bare legally-required minimums when a driver won't be using his or her vehicle. This prevents a lapse in coverage while providing low overall automobile insurance rates for the driver. Seasonal policies are an effective way to save, but before purchasing this special type of auto insurance, drivers should be sure to understand the associated risks and limitations.

Depending on a driver's state, a seasonal automobile insurance policy might restrict coverage differently during the "off" months. Many states require a certain amount of liability coverage and occasionally personal injury protection coverage (also known as PIP). These coverage types will financially protect a driver from some of the costs of an accident, but will not pay for any damages to a driver's vehicle. Seasonal drivers usually aren't worried about damaging their vehicles while garaging, but it is important to remember that natural disasters and other occurrences can total a vehicle while it sits in a garage. To avoid a heavy loss, many drivers keep some comprehensive insurance coverage during their off months. However, teen drivers and other individuals with inexpensive vehicles might decide to forego comprehensive insurance coverage entirely when buying seasonal automobile insurance.

Drivers should also understand exactly when their seasonal automobile insurance will start and when coverage will revert back to normal levels, as this is accompanied by a notable change in premiums. The best way to plan for the changes is to call an insurance agent. Drivers should explain exactly what they need, when they need coverage and when the insurer should restrict coverage limits. Depending on the insurance provider, a driver may need to call at the start of each season to make essential changes to their coverage limits. Some insurance companies will handle all of the coverage and deductible changes automatically or via an online policy management system.

As with all types of car insurance, drivers should shop around before buying seasonal coverage. Insurance companies offer very different rates for seasonal drivers, so it makes sense to compare a few car insurance quotes before buying a policy. Drivers often find it difficult to compare seasonal policies, as car insurance quotes usually don't mention these special coverage plans. To compare rates effectively, drivers should search for their higher coverage limits, not their seasonal minimal limits. Drivers should get an accurate idea of their insurance premiums from company to company by comparing quotes occasionally and choosing insurers that offer low, affordable rates and easy-to-manage seasonal car insurance policies.