- Why Is Car Insurance Mandatory?
- How car insurance premiums are calculated?
- How much car insurance should you have?
- Where to get car insurance?
- What car insurance is required by law?
- What Auto Insurance is Cheapest?
- Who are the largest auto insurance companies?
- What Is Primary & Secondary Driver Insurance?
- Whose Name Does Car Insurance Have To Be In?
- Whose Insurance Applies When You Borrow A Car?
- Can someone else drive my car if I have insurance?
- Which Car Insurance Is Best For New Drivers?
- What happens if you get pulled over and you have no insurance?
- What happens if you hit someone's car and you don t have insurance?
- Are auto insurance premiums negotiable?
- Is Auto Insurance Paid in Advance?
- Can I Have Auto Insurance From Another State?
- Should you stack Auto Insurance?
- Do Auto Insurance Companies Check Your Credit?
- Can auto insurance companies raise rates?
- Can Auto Insurance be Backdated?
- Do auto insurance companies check your driving history?
- Can Auto Insurance Companies Deny Coverage?
- Can auto insurance be reinstated after cancellation?
- Can Auto Insurance Be Cancelled At Any Time?
- Do Auto Insurance Companies Share Information?
- Can I Have Auto Insurance Without A License?
- Is auto insurance based on credit score?
- What to do when your car insurance is cancelled?
- Why would car insurance be declined?
- Which Auto Insurance Companies Use OEM Parts?
- Which Auto Insurance Offers Gap?
- Which Auto Insurance Is Cheaper Than Geico?
- Why Should I Get Full Coverage Auto Insurance?
- Can car insurance and registration be in different names?
- Can car insurance send you to collections?
- Can car insurance companies raise rates?
- Can Car Insurance be put on Hold?
- Do car insurance companies do background checks?
- Do Car Insurance Companies Share Information?
- Should rental car insurance be purchased?
- Which Car Insurance Has Accident Forgiveness?
Why Is Car Insurance Mandatory?
Some people believe that car insurance is a racket that’s most unnecessary. However, there are plenty of good reasons for it. Imagine a world where a comprehensive auto insurance policy covered nobody on the road. When the inevitable accident occurred, there would be no respite for those who were not at fault.
Driving without enough insurance coverage can be very dangerous, not to mention expensive. The average cost of an auto insurance policy may seem expensive at the time, but it’s a lot less than the cost of paying for personal injury or property damages. If you never have to use the policy, then that’s a good thing. However, life is too unpredictable to assume nothing will ever happen.
Why Keeping an Active Auto Insurance Policy Is Important
Not only is purchasing car insurance frugal and smart, it also serves as a financial safe haven for your person and property. In addition, the following reasons make keeping an active insurance policy a very good idea:
1. It’s the Law in Florida - Did you know that driving a car without insurance coverage in Florida is against the law? Legislature has been designed to help prevent the unlawful operation of motor vehicles in an effort to keep everyone safe and secure while on the roads. Find the most affordable and comprehensive policies through Mr Auto Insurance Tampa.
2. Insurance Can Save You Lots of Money in the Long-Run - Depending on several factors including your age, driving record, and vehicle type, a good insurance policy is more affordable than you might think. Adequate coverage will also pay for any accidents or property damages, sometimes even those that are acts of God. Forfeiting money out of pocket for such things can get very expensive. It’s better to make small installments each month than to fork over huge payments in the event of an accident.
3. It Helps Reduce the Cost of Other Insurance Premiums - If you have life insurance, home owner’s insurance, or renter’s insurance, an active auto insurance policy might help to reduce the cost of those things. Bundling options are typically available in the state of Florida. Furthermore, other insurance companies usually view abundantly insured individuals as less of a liability, thereby reducing the cost of their existing premiums.
4. It Provides Respite for You and Your Passengers in an Accident - Regardless of where you go or who you go there with, a good insurance policy can provide much-needed dividends if you become injured or lose your property. It can also help to pay for the cost of damaging someone else’s property or injuring them – two things that have steep costs often associated with them.
How car insurance premiums are calculated?
If you’ve ever wondered how a company like Mr Auto Insurance Tampa calculates your insurance premiums, we are going to shine a little bit of extra light on the subject for you below so that you know how to best shop for insurance to get the discounts you deserve, and pay as little as possible without cutting any corners regarding coverage along the way.
Let’s dive right in!
The most important car insurance premium factors are:
Your driving record
Right out of the gate, your driving record is going to be the most important that determines how much you are going to be asked to pay for car insurance. A clean driving record for years and years is going to help you save a mountain of money, but no driving record – or a not so hot driving record – is going to cost you quite a bit of money every single month.
Your demographic details
Your age is going to be directly associated with your driving experience, at least as far as your auto insurance company is concerned. The older you are without any incidents, the more experience they are going to find you to be, and the less you will pay for insurance.
Your marital status and your gender
will also have a huge impact the amount of money you spent on auto insurance. Males are seen as a much higher risk factor on the road than females, and single people are seen as much higher risks as well.
Where you live will have an impact, too
Believe it or not, your neighborhood, your ZIP Code, and your mailing address will all have a huge impact on the amount of money that you have to pay for automobile insurance going forward.
If you live in a relatively rural area, somewhere with low levels and low levels of moving violations and traffic incidents, you aren’t going to have to spend quite as much money as folks living in urban areas with car accidents and moving violations happening all the time.
Densely populated areas are seen as having higher levels of traffic, and for good reason. This is a big risk factor for automobile insurance companies, and if you live in the middle of a city in Florida, for example, you are going to end up spending a lot more money on car insurance than you would have living in the suburbs as well.
How much car insurance should you have?
One of the most important things you can do when shopping for car insurance is to partner with legitimate operations like Mr Auto Insurance Tampa to guarantee that you are getting the right amount of coverage without spending a fortune along the way – never cutting costs while cutting corners and compromising your protection when you are out on the open road.
At the same time, figuring out exactly how much car insurance you need and how much you should be carrying is nowhere near as simple or as straightforward a process as a lot of people think it’s going to be.
There are a whole host of factors that you have to consider when you are investing in automobile insurance, and the details we highlight below should help you guarantee that you always purchase the right coverage for your budget and your driving habits.
Collision and comprehensive coverage is valuable even if you don’t have a loan
If you have a loan out for your vehicle, you are legally going to be required to carry collision and comprehensive coverage on your vehicle.
Collision and comprehensive coverage is going to protect to your vehicle as well as the bank or lending institution that provided you with the money to purchase your vehicle, and if you aren’t carrying a loan – you’ve paid off your loan or have paid cash – you may be tempted to drop these two coverage foundations from your policy completely to save money.
Before you drop that policy, however, think about the risk factors you deal with out of the road, the value of your car if you had to repair or replace it, and how much you really have to pay extra for this kind of coverage.
Liability coverage is critical
Liability coverage is essential, as well, which is why a lot of people choose a 100/300/100 policy no matter what.
This kind of policy provides for $100,000 worth of personal injury protection, $300,000 worth of damage protection, and another $100,000 worth of ancillary protection and coverage that you can take advantage of should you find yourself involved in an accident – regardless of whether or not you were found to be at fault in that accident.
At the end of the day, use the inside information we have highlighted above to save money on your automobile insurance without compromising the amount of coverage or protection you are taking advantage of from top-tier insurance companies out on the market today.
Where to get car insurance?
When it comes to getting auto insurance in the state of Florida, it's more than essential, it's absolutely necessary. The truth is, if you do not have auto insurance in the state of Florida, you're going to be in big trouble. That's because it's actually part of the law down there to have it. So if you're a Florida resident, this is going to be very important information for you because Florida auto insurance is critical for long term success. It's one of the first things a law enforcement officer or deputy sheriff is going to ask you when you get pulled over, so if you don't have it, it can actually be considered an offense. But the golden question always is, "How do I get auto insurance?" Well put plainly, you can get it from a lot of places, but for the most part, people still don't know the best way to get Florida auto insurance. So here are a few tips you can keep in mind so that you can find precisely what you're looking for in terms of auto insurance.
Directly from an Agent
By getting an agent, it's important to get one that is reputable. While in the past you had to open up a phone book to find an insurance agent related to car insurance, you can actually directly reach out to an agent using the internet nowadays. This is why it's tremendously important to realize that if you aren't already making an effort to reach out to them, then it's absolutely essential that you do. A really high quality agent is going to let you know that if you don't have insurance, they can help you get it. But of course, they're also going to mention the fact if you go with them, you're going to get the best rates.
The reality is that not all agents are created equal. Sure, you could definitely take them on their word, but if you truly want to guarantee you're getting the best rate possible, it's always a good idea to shop around before committing to a single agent. Undoubtedly, one of the best agents around is Mr Auto Insurance Tampa. Not only are they are top notch company, but their reputation and rates available are the best in the state. Instead of continuing to the run the risk of not having insurance, be sure to visit Mr Auto Insurance Tampa sooner rather than later.
What car insurance is required by law?
It’s important that you are doing everything you can to protect yourself, your vehicle, and your bank account when it comes time to invest in car insurance – which is exactly why so many people choose to work with reputable insurance agencies like Mr Auto Insurance Tampa as opposed to fly-by-night operations that exist all over the state (and the country, for that matter).
At the same time, there’s absolutely zero reason whatsoever to spend any more money than absolutely necessary on car insurance. Obviously, you’ll want to carry the best coverage possible without cutting corners or eliminating essential protection – and the odds are good that you’ll have to carry some kind of minimum level of car insurance as mandated by the state of Florida – but you also don’t want to be carrying more insurance than you are ever likely to need, paying a lot more than necessary every month from here on out.
Here are some tips and tricks to help you assess exactly how much car insurance is required by law here in the state of Florida and how to lower your insurance prices without cutting your insurance coverage.
Insurance minimums required by the state of Florida
Florida is a state in the US that requires the lowest level of coverage (or at least one of the lowest minimum levels of coverage), giving you the opportunity to save quite a bit of money on your coverage while still enjoying a baseline of protection.
All you need to carry as far as car insurance in Florida is concerned is $10,000 worth of property damage liability protection per accident and $10,000 worth of personal injury protection. That’s it and that’s all!
Obviously, if you are purchasing a vehicle and taking out a loan to do so you’re also going to need to carry collision and comprehensive coverage. This will increase your rates a little bit (though not much) and if you pay off that loan you can drop these coverages and lower your prices considerably.
Prepay, ask for discounts, and shop around to save money
At the end of the day, the most impactful way to save money on your car insurance is to prepay your insurance in advance (either six months or a year in advance), to ask and specifically for discounts that may not be advertised and that you qualify for, and to shop around with a number of different insurance providers to guarantee that you are always getting the best deal available.
What Auto Insurance is Cheapest?
There is no simple answer to which or what auto insurance is cheapest. Everything depends on the variables, how much research you undertake and the exact terms of the policy. The state law mandates a minimum coverage of ten thousand for personal or bodily injury and another ten thousand for property damage per accident. You may want to have substantially more coverage than the stipulated minimums. This will invariably increase the cost of the Florida auto insurance. The claims you have made in the past will increase the annual or monthly cost of the policy. These are some of the reasons why most car owners or drivers will require an expert insurance agent to help them find the best policy based on their needs.
There are more than thirty major auto insurance companies operating in the state. Some of them have a federal presence while a few are only operational in the state. The market caps of these insurers vary greatly, so do their complaint indices. Some insurers are more reasonable while some take an exorbitant approach. Some insurers are easier to deal with through the claims. The cost is not the sole decisive factor. Everything associated with auto insurance should be taken into consideration while ransacking the market for the cheapest auto insurance in Florida.
Speak with an expert consultant at Mr Auto Insurance Tampa to discuss your needs. Only a detailed assessment of your profile, insurance needs, driving history and the extent to which you will drive your car can shed some light on the ballpark figure you need as your coverage. Then there are specific issues such as protection against uninsured or underinsured motorists that must be taken into account. Consult with an expert now to ascertain your needs and to find the cheapest auto insurance in Florida.
Who are the largest auto insurance companies?
How many auto insurance companies are in the United States?
The answer may surprise you. While we are all familiar with names like Allstate and Esurance, there are in fact more than 200 auto insurance companies currently operating in the United States. Some are naturally larger than others, and it is often the largest auto insurance companies that receive the most attention.
Obviously, that’s why they are among the biggest. They have the billions needed to spend on advertising, standing out from the pack, and getting your business. While it makes sense to start with the big leagues, when it comes to shopping for Florida auto insurance, the truth of the matter is that the biggest isn’t inherently the best.
Or to put it another way, the biggest isn’t necessarily the right one for your needs.
Which Auto Insurance Companies Are The Biggest?
In the end, you have a wide array of choices for auto insurance companies in Florida. The challenge on your end is to do your research, find companies that have stellar reputations across the board, and get a range of quotes that will allow you to choose something that makes sense for your needs and budget.
Again, the biggest isn’t necessarily the best. That said, it is always good to start your search for the best auto insurance company in Florida at the top of the list, in terms of size:
When it comes to the largest auto insurance companies, State Farm is absolutely massive. While the company is large enough to offer a huge range of coverage products and options, they are not the most popular company, in terms of customer satisfaction.
“15 minutes could save you---“ is just one example of the marketing savvy that Geico has displayed over the years. Their commercials are one of the reasons why they have become one of the largest auto insurance companies in the United States. Even so, this is another company with a so-so reputation for customer service.
Rebates and discounts have helped Allstate to become one of the largest and most popular insurance carriers in the country. Their overall success rate with customer service is good, but not great.
Unique benefits and perks give Progressive a nice distinction over their competitors. They also have a good reputation with customers.
Available to military personnel and their families, USAA is one of the largest, and most-liked car insurance companies to be found anywhere.
What Is Primary & Secondary Driver Insurance?
If you are just starting to get into the multifaceted subject of Florida auto insurance, then you will definitely need to learn more about primary and secondary insurance. If you are going to have someone else driving your car, then this is something you certainly need to appreciate in greater detail.
Thankfully, when it comes to primary and secondary insurance, there are only a few basic elements to this subject that you are going to want to keep in mind.
If I Have Primary Driver Insurance, Will I Also Need Secondary Insurance?
The subject of primary/secondary auto insurance comes to designating 2+ drivers for the same vehicle on the same policy. The primary driver will ultimately be the one who spends the most amount of time driving the vehicle in question. This person is going to be the first one listed on the policy. A secondary driver is going to be someone who is using the same vehicle, but not as often as the primary driver.
While the definitions of these terms are simple enough, understand that how this designation is established is something that can have a dramatic impact upon your overall costs with auto insurance.
Not surprisingly, the primary driver is the one who will have to contend with the greatest degree of scrutiny, when it comes to determining those rates. The credit rate, driving history, vehicle uses, and age will be considered with the primary driver. The age of the car, as well as the make and model of the vehicle, are also going to be weighed.
Any drivers who live at the same address as the one on the policy, and plan to use the vehicle on a regular/semi-regular basis, should be listed on the policy in question. If you have someone who does not use the car on a regular basis, and they do not live at your address, it is likely that your insurance will keep you covered. To be sure, this is certainly something you will want to ask about ahead of time, if you think there is even the slightest possibility of such a thing occurring.
Furthermore, remember that even if someone does not own a car, they can still be listed as the primary driver on the policy. Primary status also doesn’t mean that person is responsible for repaying the loan that was taken out to purchase the vehicle in the first place.
Whose Name Does Car Insurance Have To Be In?
Car insurance is a multifaceted issue. Does it have to be the person who owns the car? Can someone else take up the responsibility of maintaining the costs of a comprehensive policy? These are popular Florida auto insurance questions, to be sure.
Generally speaking, the owner of a vehicle is going to want to have that vehicle insured in their name. However, there are exceptions to that fact. As far as those exceptions are concerned, there are a few elements to the question, and its answer, that you are going to need to keep in mind.
Does Car Insurance And Registration Have To Be Under The Same Name?
It just makes sense, more often than not, for the owner of a vehicle to have the insurance in their name. It ensures that the individual’s vested financial interest in the car is protected by the benefits of the vehicle’s insurance policy. Nonetheless, there are certain situations in which it doesn’t make sense for the insurance and registration to be under the same name. Let’s consider some of these unusual circumstances in greater detail.
For example, if someone is not the primary driver of the vehicle, and they do not wish to pay insurance on the vehicle, then it is possible that the insurance will be in the name of the primary driver. For the most part, it is legal for individuals to insure vehicles that are not in their name. However, some companies can, and will, refuse to extend a policy on a vehicle that doesn’t include the explicit consent to do so by the owner of the vehicle. You may even come across a carrier that insists the title and insurance policy are under the same name. This is done to safeguard against the possibility of vehicles being used in a fashion that would violate the terms of coverage.
In the end, this is something you are going to want to discuss with any insurance provider you are considering. It certainly makes sense to explore this option in certain situations. For example, if you are a parent, and your child drives, you may allow them do so, under the condition that they have insurance in their name, while paying the premium. However, some insurers will not do this. The concern is centered around the possibility that the child might drive the vehicle out of state.
Whose Insurance Applies When You Borrow A Car?
One of the most common auto insurance questions we encounter concerns the subject of borrowing someone’s car. Unfortunately, when it comes to whose insurance applies when you borrow a car, a lot of people are really confused. Do you need insurance if you are borrowing someone’s car for a one-off occasion? If so, how much insurance do you need? Is the amount of insurance based upon how often/long you are using the car? Do you even need insurance at all?
These are good questions to ask. Thankfully, as you are going to find, the answer to this question is far more straightforward than you might think. Nonetheless, there are a few things you are still going to want to keep in mind.
Do I Need Insurance If I’m Borrowing Someone’s Car?
Generally speaking, insurance follows the car, rather than the driver. If you need to borrow a car from someone, make sure to ask about their insurance. More often than not, if you are borrowing a car, then you are borrowing the insurance that is attached to that car, as well. In the event that you are involved in an accident while driving someone else’s car, it is probable that the owner of the car will be on the hook for any financial damages that are incurred.
As a matter of fact, it is entirely possible that the owner of the car will be responsible for the deductible, as well.
To that end, ask about insurance limits that apply to the vehicle, before you actually borrow said vehicle. In certain situations, the insurance held by the vehicle owner may not provide enough in the way of coverage. Or the coverage is going to be lower than the selected limit of the owner. There are certain situations in which the insurance of the owner may need to be supplemented with something else:
- If you borrow the car on a frequent basis.
- If you are a member of the car owner’s household.
- If you are using the vehicle for business-related purposes.
If none of the above apply to you, then it is likely that you are covered by the insurance of the owner.
Can someone else drive my car if I have insurance?
A lot of drivers in the United States (especially here in Florida) get a little bit confused when it comes to determining whether or not the insurance that they purchase to protect their vehicle from an accident or an incident is actually attached to the car or to them as the driver and payer of that policy.
Trying to figure out whether or not someone else can drive your car if you have the insurance to protect that car can be a bit of a headache and hassle, but we’ve put together this quick guide to help you navigate figuring out whether or not it’s safe to toss someone you trust the keys to your vehicle.
In almost all circumstances, your insurance covers your vehicle
In 99.99% of situations, your insurance (that you have purchased from a legitimate insurance company) is going to stick with your vehicle regardless of whether or not you are driving it or someone that you trust is driving it.
If you allow someone else to use your vehicle and they end up in an accident or the vehicle ends up damaged, it is your insurance policy and your insurance company that is going to be responsible for footing the bill and paying the claim.
What if someone driving your vehicle doesn’t have insurance themselves?
This is where things really start to get sticky and why you have to make sure that you only ever allow someone you can trust to borrow your vehicle.
If someone driving your car doesn’t have any insurance themselves, they are going to be liable for ALL damages that are caused as an event of that accident or that incident. That means that they are going to be responsible for paying out-of-pocket for the damages done to any other vehicles or property but also that they are responsible for paying to fix your vehicle as well.
Your car insurance policy isn’t going to protect you in this situation.
Obviously, if we’re talking about thousands and thousands of dollars worth of damage here, the odds are pretty good that the individual isn’t going to be able to pay for your vehicle to get fixed – and likely won’t be able to pay any of the other damages, either – and that’s going to put you out of pocket to fix your vehicle.
Never lend your vehicle to anyone that you aren’t certain is carrying their own car insurance coverage.
Which Car Insurance Is Best For New Drivers?
For new drivers, the thrill of being on the open road is certainly understandable. This is particularly true, since you are going to be legally allowed on the road for the first time in your life.
At the same time, you will certainly want to think about Florida auto insurance. At Mr Auto Insurance Tampa, we can help with any questions or concerns you have, whether you are a new driver yourself, or if you are helping a young driver get things organized.
For now, let’s cover the basics of car insurance for new drivers. This can include a quick overview of your options, as well as the best options for car insurance providers.
Best Car Insurance Companies For New Drivers
The auto insurance premiums for Florida drivers are some of the highest in the United States. Just remember that Florida has the following minimum requirements for car insurance:
- 10, 000 dollars in Personal Injury Protection (PIP)
- 10, 000 dollars in Personal Damage Liability (PDL)
While these are the minimums, any reputable company will tell you that it is always a good idea to have more coverage than the state minimum. For example, collision and comprehensive coverage is designed to protect your property. Collison coverage naturally protects you from damage that is caused by a collision, while comprehensive coverage protects you from just about everything else, including theft.
Underinsured/uninsured coverage can safeguard you from accidents involving drivers who lack adequate protection. These are just a few examples. Many carriers offer the benefit of no-fault coverage, which protects you from rising rates, in the aftermath of your first at-fault auto accident.
There are a lot of different things that you need to keep in mind. For instance, understand that determining rates is something that comes down to risk. For many insurance companies, young/new drivers represent a significant potential risk. You will want to research your options carefully, but you will also want to keep that in mind.
In terms of the best car insurance companies for new drivers, here are some of the most popular options:
- Liberty Mutual: Offers accident forgiveness, new car replacement, and more.
- Esurance: This company is noted for good customer service, as well as low quotes for new drivers.
- USAA: Although only available to military personnel, or to their families, there is no question that this provider offers a deep range of discounts to keep premiums down.
- Allstate: Beyond good rates for new drivers, Allstate makes it easy for a newcomer to understand auto insurance.
What happens if you get pulled over and you have no insurance?
If you are going to be driving a vehicle in the United States, you MUST have car insurance – it isn’t just a recommendation or a necessity to own and operate a vehicle, it’s also written into the law of all 50 states.
Even in New Hampshire (the only state that doesn’t “technically” require you to carry insurance) there are rules, regulations, and laws on the book that compel you to have insurance – essentially making it mandatory clear across the US.
Here in Florida, you legally have to have insurance (which is why you need to make sure that you are working with an insurance company to cover you as a driver) if you are going to operate your vehicles on the road.
If you don’t have insurance and are pulled over there are a number of consequences that you don’t want to have to discover firsthand.
Right out of the gate you’ll get a pretty expensive ticket
If you are pulled over without insurance, you are going to receive a ticket immediately – regardless of whether or not any other infraction happened on the road and on top of any other tickets you may receive or citations that you get from the traffic stop itself.
Your license is going to get suspended
You are also going to have to deal with a license that is suspended until you can prove that you have insurance again. Of course, you also have to go through a reinstatement process to get your license renewed – and you’ll have to pay all over again to get your hands on that license.
Your vehicle may get towed
If you aren’t able to almost immediately get your vehicle off the road and make arrangements for it to be picked up and towed somewhere safe the police officers that have pulled you over and determined you don’t have insurance are legally allowed to have your vehicle towed away and impounded. You’ll have to pay for the towing, you’ll have to pay for the impounding, and you’ll have to pay to reregister your vehicle and get new license plates.
You’ll end up paying a lot more for insurance
On top of ALL of that, you also have to spend a lot more money on your car insurance going forward. This is why it is so important that you work with an insurance company to protect you from ever having to worry about getting pulled over without insurance protecting you and other drivers.
What happens if you hit someone's car and you don t have insurance?
Driving without insurance in the state of Florida is illegal, and if you are pulled over without insurance you’re going to face stiff fines and penalties, the loss of your license until you can that you have car insurance again, will have to reregister your car, and may even face jail time.
However, all of those penalties are incredibly minor compared to what happens if you hit someone’s car and you don’t have insurance. If you are involved in an accident without insurance, the penalties get very steep – especially if someone is injured or if someone’s property is damaged during that accident.
You’ll have to pay for damages out-of-pocket
Right out of the gate, you – and you alone – will be responsible for paying ALL of the damages that are caused as part of your accident when you don’t have any insurance.
Not only are you going to have to pay for your own car to get fixed and repaired, but you’re also going to have to pay for any other vehicles involved to get fixed, you’re going to have to pay the medical bills of anyone that was injured, and you’ll have to pay for any damages that have been caused to anyone else’s property.
Unsurprisingly, this can get very expensive very quickly. It isn’t at all uncommon for accident bills to hit more than $50,000 or more (that’s just in damages). If we’re talking about someone getting injured as a result of the accident to that you were involved in without insurance, we can be talking about hundreds of thousands or even millions of dollars.
You can be arrested and sentenced to jail time
Again, depending upon the severity of the issues that pop up because of the accident you were involved in, you may be arrested right on the spot and may have to face some pretty serious jail time.
If anyone was injured in the event of the accident, you’re almost always going to have to deal with legal repercussions on top of the lawsuits that you are likely to face as well. If anyone (heaven forbid) passed away because of the accident you are involved in without car insurance, we could be talking about decades in jail.
It’s important that you work with the best insurance companies around to protect yourself from these kinds of eventualities.
Are auto insurance premiums negotiable?
Even though most car insurance companies are going to tell you that their rates are nonnegotiable and that they are about as close to poured into concrete and set in cement as possible, nothing could be further from the truth.
The better and more competitive car insurance companies out there (companies like Mr Auto Insurance Tampa, for example) are going to be very comfortable negotiating for insurance premiums to win more business into help their clients save money – though you’ll usually have to initiate the negotiations and take the lead in this process.
Here are some tips and tricks to help you out!
Ask for all discounts that are available, including unadvertised discounts
A lot of people are shocked to learn that there are a lot of different discounts available from car insurance companies that they do not actively advertise or promote, deals and discounts you may be qualified for are eligible for that could save you hundreds of dollars on your insurance every year.
You have to ask for these kinds of discounts, asking your agent about any discounts you may qualify for or be eligible for, and then asked take advantage of these discounts – but they will save you a mountain of money.
Prepay your insurance to save big
There are plenty of companies out there that allow you to prepay your car insurance for anywhere between three months, six months, and a year of coverage while getting a pretty sizable discount along the way.
Even if they allow you to prepay for your insurance and do not advertise a discount, contact them directly and request a discount or tell them that you’ll elect to “pay-as-you-go”. This will almost always trigger some kind of relief (often times 10% or more) and help you save quite a bit of money on your coverage without cutting corners.
Shop around for better prices even if you aren’t going to move on
By price shopping for better rates for your insurance coverage even while you have coverage with a specific insurance company you are able to get a better idea of what the market is right now, what you could be paying if you decided to move to another insurance company, and may be able to use this as leverage to get better deals and better offers from a company that you like doing business with.
Do this kind of research 30 days before your insurance is up or before you need to know and you could save a bundle!
Is Auto Insurance Paid in Advance?
It is mandatory to have auto insurance before you take your car out on the streets. Not having Florida auto insurance is illegal. However, there is an exception. You may have an old car which you don’t drive anymore. Such a car doesn’t need to have any type of insurance. Florida auto insurance is imperative to protect the car owner, driver and everyone in the car as well as anyone else on the road who may be involved in the accident, including third parties such as property owners by the roadside who may claim damages. Given the nature, scope and significance of Florida auto insurance, it is compulsory to buy a policy and you do have to pay it in advance.
Most insurance policies require an advance payment. Life insurance, health insurance and even home contents insurance also require advance or upfront payment. You pay for a year, half a year, a quarter or a month and that period will be covered. You have to pay the next premium again before the term ends so your auto insurance coverage stays available. Should you miss the deadline to pay, your policy will lapse and neither your car nor you will remain covered for any amount. The terms of the policies may be a little lenient when it comes to life insurance but they are quite stringent in other cases. With health insurance for instance, you would lose your coverage if you miss the deadline to pay the requisite premium, even if it has only been a day after your last date to renew the policy.
Florida auto insurance is usually designed for a year. You could opt for a monthly payment but the coverage and the exact terms will be largely unchanged for the specific year you are buying the insurance for. At the end of the year, your account will be reviewed, claims would be assessed and there will be some depreciation of your vehicle that will factor in the calculation. It doesn’t matter whether you pay monthly or quarterly, half yearly or annually, the policies will change after a year unless you have a pay as you go insurance in which case the terms of the policy may change every time you go for a renewal. This is why annual policies are better since there is some sense of predictability and hence stability.
You could opt for Mr Auto Insurance Tampa and choose a pay cycle that suits your finances. Remember that grace periods when you can renew or pay for your auto insurance in advance will be longer for annual policies.
Can I Have Auto Insurance From Another State?
Speaking in broad terms, Florida auto insurance isn’t all that different from the auto insurance minimums and requirements for other states. Obviously, there are some differences, and some of them are certainly worth understanding. However, if you understand auto insurance for one state, then there is a good chance that Florida vehicle insurance will make sense, as well.
In fact, some people assume auto insurance is so consistent from one state to the next, they don’t even bother getting auto insurance for their new home state, when they move. This is not a good idea. At Mr Auto Insurance Tampa, we want to make it clear that when it comes to car insurance, you want to make sure you have insurance for the state in which you live, and in which you operate your vehicle.
There are several elements to this issue that you should keep in mind.
Do I Need Auto Insurance For The State In Which I Live?
Let’s imagine a scenario:
You live in Florida. You purchase a car from someone who lives in Georgia. The car is registered in Georgia, but it is insured in Florida. While this isn’t a guaranteed problem later on, it can certainly become one. With registering your car, it is likely that you will have to possess some form of insurance. It is possible to register, without providing immediate evidence of in-state insurance, but you will still probably need to provide it within a certain amount of time.
Furthermore, most insurers are going to require you to have an insurance policy issued within the state in which you own and drive the car. If the vehicle is being kept in another state, the status of your policy can be impacted.
When it comes to this issue, different circumstances can have different considerations. For example, if you are in the military, you will find that you should be able to establish a declared state of residence. Regardless of where you are currently stationed, you should be able to have a policy specific to the state in which your car is located.
However, even if you are moving from one state to another for a lengthy-but-finite period of time, you will still probably need to get insurance for the state in which you currently live. If you are gainfully employed in that state, own/rent in that state, and plan to be in that state for more than a few months, you will need to have auto insurance specific to that state.
Should you stack Auto Insurance?
Every car owner must have adequate Florida auto insurance coverage. There is a minimum amount of coverage necessary, as mandated by the law of the state. This minimum coverage will vary depending on a few factors. Usually, you would need a minimum of ten thousand dollars as coverage for personal injury protection and another ten thousand for property damage liability. Drivers who have been involved in accidents or crashes in the past and those who have certain offenses on their record will needed additional coverage. Every car owner can of course opt for higher coverage than what is necessitated by the law. Optimum or sufficient coverage can secure peace of mind, albeit with a higher cost for the Florida auto insurance policy.
While every driver can opt for optimum coverage, most drivers choose the minimum coverage. More than one in seven drivers on the streets don’t have insurance and many don’t have enough coverage to compensate for all kinds of losses. For instance, you may drive a certain car whose damages may cost much more than what the insurance of the fellow driver can pay for. You may suffer injuries that might take more to treat than the liability coverage of the other driver at fault. To protect yourself against such uninsured and underinsured drivers, you need to consider stacking your Florida auto insurance policy.
Stacking your auto insurance is not possible if you have only one car. If you own more than one car, then you can combine the coverage of those two or more cars against personal injury and property damage caused by uninsured motorists and underinsured motorists. Let us consider a scenario where you own two cars. Both the cars may have a single insurance policy or two separate policies. Say the coverage against personal or bodily injury and property damage caused by uninsured and underinsured motorists are twenty thousand respectively. Your actual property damage and treatment for personal injury may exceed that coverage. Since the uninsured or underinsured motorist who has caused the accident cannot pay for those expenses, you need to use your own coverage. If the costs exceed your coverage of twenty thousand, then you need to pay from your own pocket. Stacking allows you to access the combined coverage of both the cars. So instead of twenty thousand, you get a coverage of forty thousand.
You should stack auto insurance if you drive a lot. The cost of such insurance will be a bit higher but it is worthwhile if you are at risk of getting hit by an uninsured or underinsured driver.
Do Auto Insurance Companies Check Your Credit?
When it comes to choosing the best Florida auto insurance company, it stands to reason that you don’t want to encounter any unforeseen problems in the process. For example, if you know for a fact whether or not auto insurance carriers check credit scores, then you can adjust your expectations for rates accordingly. Obviously, if this were something that proved to be true, a dismal credit score will naturally have a dramatic impact on the kinds of rates you are going to be made to deal with.
However, this is a not a simple question. At Mr Auto Insurance Tampa, we want you to keep a few things in mind, when it comes to your credit score impacting your auto insurance.
Can Credit Scores Affect Auto Insurance?
If you have ever applied for things like credit cards, cars, or a loan that will allow you to buy a home, then you understand inherently that credit scores are important. In terms of auto insurance, understand that your credit score is going to make an impact. Massachusetts, Hawaii, and California are the only states in which your credit score does not influence your auto insurance.
Your credit-based insurance score is often going to be used as a means of determining risk. However, a credit-based insurance score is not the same as a credit score. A credit score is established through information that is found on your credit report. Major lending institutions use it to figure out the likelihood of a loan being paid back on time. A credit score establishes things like your interest rate, or your general qualifications for a loan.
A credit-based insurance score is a bit different. This score isn’t going to use things like jobs, income history, gender, or anything else in the way of your private information. A car insurance company will use them to figure out the odds of insurance claims later on. A credit-based insurance score will be considered, along with things like your history as a driver, your history with claims, and much more. Lower rates tend to most often go to those who have great credit-based insurance scores, a great driving history, and no claims on your records. Keep in mind that the insurance-based score is only element to figuring out your rates.
For example, if you have a great score, but your driving record is poor, then you will likely be considered a little riskier, compared to someone who scores well on both points.
Can auto insurance companies raise rates?
Every time that your car insurance policy “lapses” – regardless of whether or not it lapses because you allow it to so that you can shop for other coverage or because you simply aren’t interested in continuing on with that insurance company – there is potential for your automobile insurance rates to increase the next time that you purchase insurance from that company.
Of course, there are a variety of other reasons behind why your automobile insurance rates will increase, especially those that deal with any moving violations, any traffic violations, or any automobile accidents that you may find yourself involved in.
Auto insurance companies have the right to raise rates on you just as soon as your policy concludes, and if you are on a six-month policy or a 12 month policy you want to make sure that you know exactly what you are getting into before your insurance lapses so that you know whether or not your prices are going up.
Keep your driving record clean
The best thing you can do to keep your insurance prices low is to avoid any driving record blemishes that could have otherwise been avoided.
Obviously, you will have zero control over the decisions made by other drivers out on the open road. And from time to time, accidents that we have zero control over are going to occur in our insurance is going to go up because of it.
But if you avoid getting speeding tickets, parking tickets, and other moving violations you won’t have anything to worry about.
Renew your policy before it terminates
One of the smartest things you can do to keep your car insurance prices low (especially with companies like Mr Auto Insurance Tampa) is to renew your policy before it terminates, locking in low rates and earning long-term customer discounts that wouldn’t have been available otherwise.
Now, before you automatically renew your policy with a company it’s important that you have a look at your options out there on the open market. You may be able to find insurance from another company that is even lower than the insurance you have right now, and if that is the case you want to consider “jumping ship” to save money without cutting corners on your coverage.
The same time, it may be advantageous to contact your insurance company a month before your policy is set to conclude and see if they are willing to offer you any deals or discounts to keep you around as a customer. Most insurance companies are happy to do so, understanding just how expensive it is to convince complete and total strangers become customers.
Plus they already know that you are a responsible driver and pay your bills on time – two big benefits that should help you save a bit of money on your insurance premiums.
Can Auto Insurance be Backdated?
Auto insurance cannot be backdated. No reputed Florida auto insurance company will offer you a backdated policy. Any backdated auto insurance is tantamount to insurance fraud in most states. There are different reasons why car owners and drivers look for backdated auto insurance and none of them provide any rationale for insurers to do it. Florida auto insurance companies will be opening a Pandora’s Box if they were to offer such policies. It is financially and legally unviable.
Let us imagine a scenario wherein a Florida auto insurance company does offer backdated policies. What stops a driver from opting for such a policy after having caused an accident to seek coverage for the same when he or she was not covered at all? Every car owner will begin to think that they don’t need to pay for insurance at all and can only opt for it when they need the coverage and backdating the policy will resolve everything. This is financially impossible. Florida auto insurance companies cannot provide coverage to someone or a car when the person or the car was not actually covered by any of its policies.
There is a system in place where auto insurance policies can be reinstated and this may be akin to backdating a policy. For instance, if you have a car insurance policy that expires in April and you forget to renew it, then the insurer may allow you to reinstate the same in continuity. You can renew the policy in May but have no lapses in the coverage. Your record will show that your coverage has been in continuity. However, you would have to sign a no loss form. You cannot reinstate a policy after having failed to renew it in time, only to claim coverage for an accident or loss during those weeks when you did not have an active coverage. The no loss form protects the insurers and puts you on record that nothing untoward had happened during that time of no coverage.
Reinstatements too can only be opted for if you have a lapsed policy for a few days, up to a month. You cannot reinstate a policy that has lapsed three months ago. To conclude, you cannot backdate a Florida auto insurance policy. This is regardless of the terms of the policy and how much coverage you have, what car you drive and how experienced you are as a driver.
Do auto insurance companies check your driving history?
When you are searching for automobile insurance, it’s important to understand which factors are going to play the biggest role in your automobile insurance pricing – helping you to navigate the sometimes confusing process while getting your hands on the very best insurance at the very best prices.
Obviously, right out of the gate you’ll want to be sure that you are only ever working with real deal insurance companies that you know you can trust. Companies like Mr Auto Insurance Tampa have sterling silver reputations in the automobile insurance industry and other kinds of insurance companies you know will always give you a fair shake on price, coverage, and customer service.
If you have a spotless driving record your one of the select few drivers out on the road today that probably don’t have to worry all that much about a car insurance company pulling your driving record, but if you’re like most folks you have a couple of incidents, tickets, or moving violations that might have a negative impact on your ability to get the best insurance at the best prices.
Will my auto insurance company pull my driving history before they offer me coverage?
We can tell you that your auto insurance company CANNOT pull your full motor vehicle report (MVR), has these records are only available to DMV professionals and aren’t just going to be shared with anyone and everyone – even if they are requested.
At the same time, your auto insurance company is likely to pull a quick summary that lists some of the most recent tickets, accidents, and moving violations that you may have received. Usually, this summary goes back about three years or so but sometimes it will go back five years or maybe just a bit longer.
This is all done by your insurance company in an effort to assess the risk that they are going to be taking on by offering you insurance in the first place. Your past driving performance is the only indicator they can reliably use to predict your future driving performance, and if it isn’t spotless you’re likely to have to pay a stiffer penalty and higher premiums.
This is what insurance companies mean by adding “points” to your driver’s license. Different infractions are going to add different amounts of points to your license and your driving record, and these points are going to be used by insurance companies to determine how much of a risk factor you are and what your insurance premiums should be assessed at.
Can Auto Insurance Companies Deny Coverage?
Most states, including Florida, require drivers to display a certain element of financial responsibility. This is done to ensure that an individual can pay the costs associated with a car accident. To that end, having insurance can go a long way towards proving that financial responsibility.
That is all well and good, but what are you going to do, if you are denied the opportunity to receive coverage? If you find yourself being denied by multiple Florida auto insurance providers, you are certainly going to want to know what your next move should be. It can also be helpful to understand the different reasons as to why someone might be denied auto insurance.
Whether you are dealing with rejections, or if you are planning to shop for auto insurance in the future, you are going to want to make sure you understand the potential red flags that can lead to being rejected by an auto insurance company.
Why Are Auto Insurance Companies Turning Me Down?
Understand that car insurance companies are generally well within their rights to deny someone a policy. There are several different reasons as to why someone might be turned down. Understanding these reasons can go a long way towards making your search a little easier:
- DUI/DWI convictions, or any other traffic violations that could be considered serious.
- Being involved in a serious car accident, which includes car accidents that involve serious injuries. Having such an accident on your record can put you in the unfavorable light of being extremely high risk to an insurance company.
- Having a number of traffic violations across your record as a driver.
- If you have extremely weak credit.
- If you have a connection to several insurance-related violations. This includes any lapse in coverage of your auto insurance.
- If you own a high-performance vehicle.
These are the most common reasons as to why an insurance company might turn you down for a policy. If you find yourself in such a situation, continue shopping around. With more than 200 auto insurance companies in the United States, there is an excellent chance that you will eventually find a carrier who is willing to give you a policy. You can also explore the possibility of high-risk car insurance. You can also look into the possibility of a program that is designed to help people in your situation get the insurance they need.
At Mr Auto Insurance Tampa, we can provide you with the resources you need to find the best possible insurance carrier.
Can Auto Insurance Be Cancelled At Any Time?
While you should never go without automobile insurance for any period of time, there are going to be situations in which cancelling your car insurance is essential. To that end, you want to make sure you are cancelling your policy in such a way that ensures your vehicle is being covered over the proper period of time. As long as you know how/when to cancel car insurance, you shouldn’t have anything to worry about. You simply need to know the best time.
So to answer the question posed by this article, yes, you can technically cancel your policy at any given time. However, there is a time and a place for everything. This thought can certainly be applied to the best time to cancel your Florida auto insurance.
When Is The Best Time To Cancel Auto Insurance?
While you can terminate your auto insurance whenever you feel like it, there is still a certain amount of caution that should be exercised. For example, the circumstances that compel you to cancel your insurance are very important. In certain situations, you may be required to pay a fine. In order to avoid these penalties, you are going to want to put in a request to cancel your car insurance. If you happen to cancel immediately after choosing a policy, regardless of the reason for doing so, there is an excellent chance that you will be charged a penalty.
Cancellation fees can differ from one person to the next. It can be anywhere from a paltry twenty-five dollars, to a percentage of your overall premiums. Different insurance companies are going to have different ways of dealing with cancellations. If you are at all concerned about the possibility of canceling your insurance policy, then you are going to want to do two things:
- Read any fine print: Before taking on a policy, make sure you understand all of the details of that policy. This includes any fees that you may be subject to, in the event that you choose to cancel your car insurance.
- Ask your insurance agent: Insurance agents will be only too happy to answer this question.
These are the things you are going to want to do, if you think there is a possibility that you are going to cancel your insurance. You will also want to keep in mind that you may be required to foot the bill for the days in which you were covered/protected under the policy you have cancelled.
Can auto insurance be reinstated after cancellation?
If you have found your automobile insurance policy to have been canceled for any different variety of reasons, your best course of action is to reach out to your insurance company and see if you can take steps to reinstate the policy that you already had.
In most circumstances, top-notch insurance companies (like Mr Auto Insurance Tampa) will work with you to make sure that you get your coverage reinstated. At the same time, if a payment grace period has elapsed, and if you haven’t been able to keep your insurance in good standing, you may not be able to get your car insurance reinstated as quickly or as effortlessly as possible.
Benefits of getting your car insurance policy reinstated
Right out of the gate, the biggest benefit of having your car insurance policy reinstated from a company like Mr Auto Insurance Tampa means that you don’t have to go shopping for insurance from a whole host of other insurance providers – potentially paying a lot more for insurance with a company that you may not be all that familiar with in the first place.
Secondly, you’re going to be able to protect yourself as a driver with this kind of reinstatement process – especially if you are able to reinstate your policy before you have to go and reregister your vehicle all over again. This is usually a time sensitive process, but if you’re able to move quickly enough you can avoid a lot of extra headache, a lot of extra hassle, and a lot of extra payment penalties.
You may have to pay some penalties for reinstating your car insurance
Some car insurance companies in Florida are going to throw you off of a previously established payment plan if you miss a payment or two and have to be reinstated, requiring that you prepay for anywhere between six months and one year of insurance upfront to qualify for reinstatement.
It’s also likely that a car insurance company is going to request that you pay late fees, on top of any payment penalties that you may have to pony up just to have your car insurance reinstatement process proceed.
Finally, some car insurance companies are also going to tack on a policy surcharge for anyone that has their policy reinstated. Not all companies are going to go in this direction, and not all surcharges are going to be created equally, so you’ll want to make sure that you speak with a representative before you get hit with hidden charges and fees you’d expect.
Do Auto Insurance Companies Share Information?
Whether or not auto insurance companies share information is a question well worth appreciating in greater detail. After all, if you had some problems during your previous experience with an auto insurance provider, then knowing their information about you will be passed on to the next provider is something that can be useful to know. It can give you a clear idea of what you will likely experience, as you search for the best possible Florida auto insurance provider.
At Mr Auto Insurance Tampa, we don’t want you to come across any unforeseen problems, in terms of the experience you can expect to have with us. That includes making sure you are aware of our relationship to other Florida auto insurance companies, as it specifically pertains to this question. This is also likely the answer you are going to get from any other auto insurance provider you come across.
Do Car Insurance Companies Exchange Customer Information?
On the subject of auto insurance companies sharing information with one another, understand that carriers do not consult with one another, nor do they engage in the practice of sharing information about driving histories or claims histories. Rather than have such conversations, auto insurance providers will utilize a professional subscription service that gives them everything they need to determine your overall insurance risk.
Since no two auto insurance companies weigh the particulars of your information in exactly the same way, you can expect to receive different rates from different companies.
However, this is something that could change in the future. The NAIC (National Association of Insurance Commissioners) is currently encouraging states to bring forth legislation that will make it easier for providers to share information with one another. Proponents of such legislation believe that it will make it more difficult for people to engage in insurance fraud.
For the time being, auto insurance providers in Florida will use consumer reporting groups that sell information about your driving record. This information is going to include a range of factors. Few of them will surprise you. We are talking about such factors as your record as a driver, your history with claims filing, your credit, and how many years you have as a driver. Your zip code is another factor that may come up, in addition to the value of the vehicle or vehicles for which you are seeking coverage.
If you have any further questions about this issue, please don’t hesitate to contact our experts at Mr Auto Insurance Tampa.
Can I Have Auto Insurance Without A License?
As you can imagine, the instances in which an individual can get auto insurance without a license are extremely rare. However, there are situations in which it is possible to do exactly that. This is one aspect of Florida auto insurance that comes with some very unique considerations. This isn’t the most common question we receive, but it is nonetheless something that is well worth understanding in greater detail.
While there is not a law that forbids an individual from buying a car without insurance, there are still several elements to this issue that must be taken into account. Obviously, for example, every state has laws that forbid an individual from driving that car without a license. There are also issues pertaining to auto insurance, as it relates to whether or not you have a license.
Do I Need A License And Car Insurance?
Can you get auto insurance without a driver’s license? Absolutely. However, most insurance companies are not going to offer you coverage, unless you have a driver’s license. The exceptions to this rule are quite rare, although they do exist.
If you are interested in getting auto insurance without a license, here are the requirements that you are going to need to keep in mind:
Find a primary driver: Choose someone who is extremely close to you. Blood relatives and spouses are a good example of what we are talking about.
Don’t lie: When talking to an agent about a policy, do not lie, or stretch the truth to any extent. Simply tell them the truth, and ask them for alternatives, if they are unable to help you. Lying in the present is almost certainly going to mean having your claim denied in the future.
You need to be excluded: If you do find an insurance company that will give you coverage without a license, understand that you will need to be excluded as a driver on your policy.
Does the primary driver live with you? Either answer to this question can take you down a wildly different path. For example, if the primary driver does live with you, but they are not your spouse, you can be listed as insured on the policy, while being excluded as a driver at the same time. If the primary driver does not live with you, things will naturally be a good deal more difficult. You may have to look to alternative insurance carriers.
Is auto insurance based on credit score?
If you are shopping for car insurance company and want to make sure that you get the best possible prices for the best coverage available, you’ll want to be sure that you are aware of all the different factors that play a role in your car insurance premiums and that you do your level best to tip the odds in your favor.
A lot of folks are aware of the fact that their driving record has a huge impact on their insurance rates, and most are also aware of the fact that their age, their gender, their marital status, and even where they live as a pretty big impact on insurance premiums as well.
What most folks do not understand is that all automobile insurance companies also check into your credit score to have a look at whether or not you have any blemishes there to determine just how much they should be charging you for auto insurance as well.
This sounds a little bit surprising at first, and a lot of people aren’t sure of what kind of correlation credit score has with auto insurance coverage or prices, but it’s a factor that the auto insurance companies use nonetheless it it’s something that you want to understand and anticipate moving forward.
Credit scores are used by car insurance companies to predict the likelihood of insurance claims in the future
At the end of the day, insurance companies are always looking to manage and mitigate risk, and are obviously going to charge more money of the drivers and insurance customers that they find to be the highest risk of the bunch.
Those that have low credit scores are seen to not have quite as much available cash on hand as those with higher credit scores, and statistically these kinds of people are a lot more likely to file an insurance claim – even for minor damage – compared to those that may have been willing to pay out-of-pocket if they had the means and the ability to do so in the first place.
Obviously, this isn’t a 100% accurate way to look at people that have lower credit scores, but the statistics do bear out this approach and at the end of the day insurance companies have to protect themselves as best they are able to. Improve your credit score and you’ll be able to drop your insurance prices significantly.
What to do when your car insurance is cancelled?
Every state in the United States requires you to have active automobile insurance to drive legally on the roads of this country, and you need to make sure that your automobile insurance is always active, is up-to-date, is paid for, and isn’t able to lapse on you or get canceled.
Should you find your auto insurance to have been canceled by your auto insurance company, however, you’re going to need to do everything you can – just as quickly as humanly possible – to get your insurance back up and running so that you can legally drive your vehicle again.
Here is exactly what you need to do when you have your car insurance canceled on you!
Contact your insurance company and find out why your insurance was canceled in the first place
Right out of the gate, you are going to want to contact your insurance company and figure out exactly why your insurance was canceled in the first place.
They will be able to share this information with you directly over the phone, and will be able to assist you if there was an issue with your account or if the coverage was canceled due to nonrenewal or nonpayment.
In most situations, you’ll have to cut a check (and potentially pay a penalty) to have your previous insurance reinstated – but if that’s not something that you are particularly interested right now (if you’d like to work with a different insurance company, for example) you’ll want to move on to the next step.
Shop around for new insurance coverage
The internet is going to be your best friends when it comes time to shop for insurance, giving you the opportunity to look at the kinds of deals, coverage options, and benefits available from insurance companies.
At the same time, you may find that your quote requires you to prepay between three months and six months of insurance in advance if you have been canceled by your insurance company due to nonpayment.
Have a look at all of the quotes you have the time to research, really try and figure out if they all offer the same level or comparable levels of coverage, and then begin to break exactly how much these insurance options are going to cost you out of pocket.
You’ll want to do your best to handle this all online or on the telephone so that you can get your insurance back up and running ASAP, giving you the opportunity to keep your car on the road legally.
Why would car insurance be declined?
Because of the fact that everyone in the state of Florida needs to have car insurance, it's essential that if you're someone that is looking to be on the road and actually be safe, you're going to have to be very aware of what you're doing. It's not uncommon for those kinds of individuals to encounter issues, but because of that, there are a lot more people in the long run that are better off finding out why they are having trouble getting car insurance rather than continuing to bang their head into the wall wondering why nothing is changing.
So if you're someone that is either experiencing numerous instances of rejections as far as car insurance goes or if you're simply someone that is needing to make permanent adjustments to really improve the way their car insurance operates, it's absolutely essential that they seek out one of the better car insurance firms on the market. These firms are not only going to be more reasonable for those with a tough driving history, but they will be able to interact with those troubled drivers and try and give them some sort of relief. This will go a long way in terms of making things better, and in the long run, that's essential to having success in terms of car insurance.
But when it comes to the reasons people get declined, there are plenty, but if you're someone who got denied and has no clue as to why it happened, here are just a few things that are important to keep in mind. By doing so, you'll have less of a chance of something bad happening, and be more likely to rest easy knowing you have been denied for a rightful purpose.
For one, being a dangerous driver is going to be the biggest reason you get declined. As far as what counts as being a dangerous driver, you have to understand that if you have any driving-related violations on your record, any and all of them could be considered permanent black marks that will be unable to get overturned. So always keep this in mind when you're trying to get Florida auto insurance because it's absolutely essential for long term success as a driver. Now if you're looking for a great company that is reasonable for all sorts of drivers, be sure to check out Mr Auto Insurance Tampa regardless of your driving history.
Which Auto Insurance Companies Use OEM Parts?
In the event of an accident, it seems likely that you will need to make some repairs, or have certain parts of your car replaced entirely. In either of those scenarios, it stands to reason that you would want the body shop you choose to pick OEM (original equipment manufacturer) parts. This means you are getting new parts from your vehicle, directly from the manufacturer of your vehicle. For almost anyone who owns a car, this is the preferred route for replacement parts for your car.
Of course, this can be more difficult with older cars. However, generally speaking, you can make sure your body shop is choosing OEM parts. More often than not, they will opt for OEM parts of their own accord.
However, if you are going through an insurance provider, things aren’t quite as simple. This is one of the most common Florida auto insurance questions we come across. You may want OEM parts, but can you be sure your provider will make sure you get those parts?
The answer to this question is likely to surprise you.
Do Auto Insurance Companies Use OEM Parts?
Does your auto insurance automatically cover OEM parts? While insurers put this provision in automatically, the truth of the matter is that the vast majority of them do not. More often than not, a provider will only over coverage for non-OEM parts.
That doesn’t sound very appealing, to be sure. Thankfully, there are several things you can do to ensure that if an accident occurs, you will get the parts you need:
Request OEM parts ahead of time: Some insurance carriers do not offer any coverage for OEM parts whatsoever. Some will offer coverage, but only if you ask about it ahead of time. When you are shopping around for auto insurance in Florida, and you have your heart set on OEM parts for all replacement needs, make it a point to discuss this with any insurance company that you may consider.
Not all parts have OEM counterparts: Older vehicles, or even discontinued models, sometimes do not have OEM parts, regardless of your wishes. In situations such as these, aftermarket/used parts may in fact be your only option.
If your provider doesn’t cover OEM parts: If you still want OEM parts, and it is not covered by your provider, then you can generally choose OEM, and pay the difference between that and the cost of aftermarket/used parts.
Which Auto Insurance Offers Gap?
GAP, also referred to as gap insurance or gap coverage, at times as auto insurance with gap or gap car insurance, is an acronym for guaranteed auto protection. It is a special type of protection within the ambit of car or auto insurance. Most auto insurance companies in Florida and other states across the country offer gap coverage. However, it is slightly more expensive than normal car insurance. Most car owners, who owe more to the auto loan provider or dealer than what the car or vehicle is worth, will require gap coverage.
Those who have made a significant down payment and owe less than the value of their car to the lien holder or leaseholder will not need gap coverage. In most such cases, the insurers don’t find these applicants eligible. Those who have made a small down payment and owe more than the worth of the car should opt for gap insurance, despite the total insurance costing more. GAP or guaranteed auto protection essentially offers substantial coverage in the event of total loss. The total loss could be the complete destruction of the car or damage that is beyond normal repairs or would cost as much to repair as the total value of the car. It should be noted that personal loans or any individual being the leaseholder of the car cannot be the lien holder. The leaseholder has to be a financial institution or company lending the money.
Most insurers offering gap coverage will compensate the difference between the actual amount owed by the lessee or borrower and the actual cash value of the car at the time when the total loss was incurred, less any deductible that may apply. This coverage can be available for new cars and used or pre-owned cars. Gap insurance doesn’t imply a car owner would not need comprehensive coverage including collision, property damage liability and personal or bodily injury. Gap auto insurance in Florida and most other states is an add-on. The coverage provided will not cover any unpaid finance or expenses that may be incurred. Such costs must be borne by the car owner. The insurance will pay for the value of the car in its pre-accident or pre-loss condition.
Some Florida auto insurance companies offer the same gap coverage as loan/lease payoff coverage. Both effectively have the same implications. You may also consider availing gap coverage from the dealer but most dealers will charge you more than the Florida auto insurance companies.
Which Auto Insurance Is Cheaper Than Geico?
When it comes to shopping around for Florida auto insurance, it stands to reason that you want to save as much money as possible on your auto insurance policy. With so many different options for auto insurance companies in Florida, or indeed, with auto insurance companies in the United States, it can be challenging to shop around for something that works for your needs. You want to have the best insurance possible, but you don’t want to pay more than is necessary.
For that reason, as well as others, a lot of people just choose Geico. As one of the largest auto insurance companies in the United States, Geico has established its popularity for offering some of the cheapest rates to be found anywhere. Smart advertising campaigns haven’t hurt their public perception either.
At the end of the day, if you are looking for the cheapest auto insurance company possible, there is an excellent chance that Geico is going to be your best bet.
However, this is not always the case.
Car Insurance Companies That Are Cheaper Than Geico
It is important to remember that different people are ultimately going to have different experiences with car insurance companies. For example, just because you have a friend who got a fantastically cheap rate with a company like Allstate, compared to how they would have fared with Geico, this doesn’t mean you are going to get the same opportunity. A wide range of influences determine the rate that is offered to you by an auto insurance company. Furthermore, the influences can change from one company to the next.
On average, Progressive seems to be the most promising possibility for those who want a cheaper option than Geico. Many people who shopped around found that Progressive offered cheaper rates than what they would have had to pay with Geico.
In the end, you are still going to need to shop around, if you are committed to finding the cheapest rates possible. At the same time, you are going to want to keep in mind that the cheapest car insurance policy is not automatically the best one. Make sure you are getting coverage that will keep you protected on every possible level.
Why Should I Get Full Coverage Auto Insurance?
If you are shopping around for Florida auto insurance for the first time, you may feel a little overwhelmed by the different types of car insurance that are available to you. There are several different possibilities and packages, in terms of what you can do to protect your car, as well as yourself, or even someone else who may use the vehicle. One common term you are going to come across is full coverage auto insurance. This is a type of auto insurance, and there are a number of different reasons as to why you should strongly consider this level of insurance.
If you already understand full coverage auto insurance, but you still don’t think it’s necessary, it can be worth going over the benefits of full coverage auto insurance in greater detail.
Do I Need Full Coverage Auto Insurance?
For many, full coverage auto insurance saves them money over the long term. This is particularly true for those who get into an accident. Unfortunately, when we shop for auto insurance in Florida, like everywhere else, a lot of people shop for the state minimum. While you can make a good argument for the short-term benefits of Florida auto insurance state minimum, in terms of saving money, the risk is just too great.
Simply put, in the event of an accident, state minimums are not going to help you. The costs involved can prove to be far, far greater than anything you saved by sticking to the minimum. This is perhaps the most significant benefit of having full coverage. The stress and physical pain of even a minor car accident can be substantial. No one wants to then add the emotional duress of knowing they are now facing thousands, or even tens of thousands, of dollars in damage and other costs.
Full coverage auto insurance can be interpreted in a few different ways. Nonetheless, full coverage generally involves the following:
Liability insurance: This refers to the damage in the accident in which you are at fault. Vehicle and medical expenses for the other person involved in the accident is also typically covered.
Collison insurance: Damage to yourself, to your passengers, and to your vehicle, if the accident is your fault, will be covered through collision insurance.
Comprehensive insurance: If someone else is driving your car, and there is an accident, then comprehensive insurance will have your back.
Can car insurance and registration be in different names?
For a variety of different reasons, people often wonder whether or not they can register a vehicle in someone’s name and then have car insurance purchased by someone else to cover that car – and finding an answer to whether or not this is a legitimate approach can be a bit of a challenge.
If, for example, a husband and wife were looking to register a vehicle and purchase insurance for the same vehicle separately, could they do so?
It turns out that it is possible – though it can be pretty tricky to navigate and there are going to be quite a few hurdles that you’ll have to jump over to tackle this kind of issue.
Is it possible to get car insurance for a vehicle that isn’t registered to you?
In most cases, there are no rules, no regulations, and no laws that are going to stop you from purchasing car insurance for a vehicle that isn’t registered to you in specific – but a lot of states and a lot of auto insurance companies just aren’t going to be willing to do so because of all the legal redtape that needs to be taken care of and the difficulties in getting everything to mesh up should a claim need to be filed.
You see, there’s something in the insurance world known as “insurable interest” as far as vehicles are concerned. When you register a vehicle that you own, and then you go to purchase insurance, an assumption is made by the insurance company that you are going to have the best interests in protecting that car and keeping it safe at heart.
Most car owners aren’t interested in crashing their vehicle because they’d have to pay for repairs, may lose the vehicle completely, and will see their car insurance rates go right through the roof.
At the same time, if you don’t own the vehicle that you are purchasing car insurance for you may not have any concern in the world about whether or not that car is protected out on the road. The insurance companies are (understandably) nervous that these kinds of insurance clients would just push the bill to fix or repair the vehicle on the insurance company itself, and most of them aren’t willing to take that risk.
If you’re still interested in moving in this direction, you’ll want to contact a company like Mr Auto Insurance Tampa to learn which kinds of hurdles you’d have to jump over, the kinds of paperwork you’d have to file, and how long the process will take to get you and that car out on the open road.
Can car insurance send you to collections?
If you have decided to take your car off the road for an extended amount of time – regardless of whether or not it just isn’t running right anymore and needs extensive repairs, isn’t being used as much as you expected it to be, or is being made available for sale and you don’t want to put any more miles on the clock – the odds are pretty good that you have decided to take insurance off of your vehicle and not pay for coverage that you just don’t need.
There’s absolutely nothing wrong with this approach, but some folks decide not to go through the relatively simple and straightforward process of shutting off their insurance and canceling a policy with an insurance companies but instead choose to simply ignore their automobile insurance bills and deal with the repercussions.
None of them expect that their insurance company will send them to collections and wreak havoc on their credit score, more often than that’s exactly what happens – regardless of how small your insurance payments were in the past!
Insurance companies can send payment requests for canceled out policies
One of the reasons that people ignore the bills that they receive from their insurance company is because they are receiving bills on policies that they have canceled, bills from these insurance companies that expect them to continue paying for a six-month or one-year policy that has otherwise been terminated.
If you are going through this kind of situation, receiving bills that you don’t feel you owe, it’s important that you don’t ignore them but instead reach out to your insurance company directly and tell them that you’ve canceled your policy, do not need to coverage, and will not be paying any further.
This produces a paper trail that you can refer back to should your insurance company decide to send you to collections, a paper trail that will be critical if you have to take your insurance company to civil court and have the collection removed from your credit report permanently.
Often times, however, after you talk with your insurance company they will understand your situation, stop sending bills to you in the future, and generally allow you to deal with a lot less headache and hassle moving forward. They might ask that you pay for insurance in advance should you choose to take advantage of them again in the future, but a little bit of price shopping around help you avoid having to deal with that extra out-of-pocket cost moving forward.
Can car insurance companies raise rates?
It isn’t ever fun finding out that your car insurance rates are increasing, but car insurance companies have the right to increase their rates at almost any point in time – provided you are given plenty of opportunity to be alerted to the exchanges and opportunity to make a change with your insurance to mitigate the issue.
There are a whole host of different reasons that your car insurance company may choose to raise your rates particular, and we are going to highlight some of the most common ones in this quick guide.
Some sort of moving violation, accident, or claim was made with your insurance
The overwhelming majority of instances regarding car insurance prices that go up are going to be related to some kind of moving violation, some kind of accident, or some kind of claim that was made to take advantage of your automobile insurance in the first place.
Not all accidents, not all tickets, not all driving record blemishes are going to increase your car insurance rates (particularly if you are working with a top-tier insurance company, but this is usually the kind of event that triggers increased price hikes.
Lapsed discounts, any relocations, and general price increases can all impact your policy
Other reasons you might find your car insurance increase include lapsed discounts that you used to be eligible for and are no longer eligible for (safe driving records, military discounts, etc.). Companies frequently offer promotional discounts to get new customers away from their competitors, but increase prices later down the line as these discounts lapse.
Relocating they involve a price hike as well. This is especially true if you are moving from a rural or suburban area to a more urban or city community with a lot more traffic and a lot more risk as far as your vehicle being on the open road is concerned. This will entail an automatic price hike, though it’s usually one that you can negotiate back down if you contact your insurance company directly.
Finally, businesses regularly increase their prices over the lifetime of their business for one reason or another. Sometimes this has to do with inflation, other times it has to deal with the rising cost of doing business, and sometimes they just do so to become more profitable.
At the end of the day, there’s always potential for your car insurance bill to go up – which is why you should constantly be shopping for better deals and discounts.
Can Car Insurance be put on Hold?
There could be times when you may not need you car or you may be away for a while and hence paying for car insurance may not seem necessary. Needless expenses are always undesirable. In such situations, you may wonder if your car insurance can be put on hold. Technically, you could put your car insurance on hold or opt for an alternative that will save you money, for now. In reality, suspending car insurance or any such option is quite complicated and not always wise. Let us explore the different options at your discretion and if any will be appropriate in your circumstance.
- Florida auto insurance can be suspended for a period of time. You may be going away for a few months, on business or holiday or perhaps military deployment. You can suspend the insurance policy for those months and avoid paying for it. However, your car would not have any coverage during these months. This will suit your on road coverage, such as financial protection against accident and paying for treatment of any personal injury. The lack of coverage will also mean that your car will not be protected against theft, vandalism or any kind of damage it may be subjected to while being parked in your garage. There could be a fire, for instance. The damages to your car or complete destruction will not be covered and you would not be compensated in any way.
- Any car owner who has an auto loan will not be eligible for the suspension of Florida auto insurance. This is partly because of the lack of coverage, which your lien holder or loan provider will not permit. It is partly owing to the ineligibility according to the criteria set by Florida auto insurance companies. You must have insurance coverage at all times throughout your loan repayment period, even if your car is parked in a covered and well protected garage for years. Else, your vehicle registration may be cancelled and your driver license may also be suspended.
- You could cancel your Florida auto insurance for the time you would be away and not driving your car. This will show up the next time you want to opt for Florida auto insurance and the terms offered may not be in your favor. The cost of insurance may shoot up. The other option is to remove yourself from the coverage, which applies to families having multiple drivers. Your insurance cost will come down. You may also reduce the extent of the coverage, which will also bring down the cost. All these have serious implications so you should assess if it is wise for you to put your car insurance on hold.
Do car insurance companies do background checks?
If you are worried about your insurance company – or a potential car insurance company that you are thinking about doing business with moving forward – digging into your background to determine whether or not they should take you on as a client, you may not be quite as paranoid as some would accuse you of being.
Reports out of the automobile insurance industry show that a number of car insurance companies are in fact digging deeper into the background of their potential clients, doing so discreetly but also making sure that they are only bringing the best possible clients that have the ability to pay the fees that they are charging for their insurance without any headache and without any hiccups.
Criminal convictions can impact your car insurance
Most people are aware of the fact that automobile insurance companies are having a close look at their driving record, trying to figure out how many tickets you had in the past, how many accidents you have been involved in, and really paying close attention to any other moving violations or driving record blemishes that might flag you have a high risk customer or client.
A lot of people aren’t aware of the fact that these same car insurance companies are also digging into your criminal record to see if you have any automobile related incidents or arrests that they want to be aware of.
Things like DUIs are going to raise a gigantic red flag, and some insurance companies won’t even do business with individuals that have these kinds of blemishes on their record – though they usually allow a blemish or two while charging higher fees for the privilege of getting insurance from them.
Some auto insurance companies will hire private investigators when a claim is processed
For the most part, however, your automobile insurance company isn’t going to do anything other than a surface level look at your background when they are getting ready to take you on as a client.
However, if you have to process a claim with your insurance company they are going to dig deep into most every aspect of your life. Some insurance companies have even gone to the lengths of hiring private investigators to have a look at the claims and the individuals that file them, giving the insurance company a more in-depth look at the legitimacy of that claim in particular.
Do Car Insurance Companies Share Information?
While it is true that insurance companies are going to use elements of your personal history, particularly as it relates to your history as a driver, this information is not obtained through the practice of insurance companies communicating with one another.
This is a very common example of Florida auto insurance questions that we encounter. There are a number of different things to keep in mind, as you choose your car insurance company. To be sure, you want to work with a provider you can trust. Providers do not share information with one another. No one is going to sell your information to third parties. However, that doesn’t mean we aren’t going to want a comprehensive overview of your history and habits, in order to determine the best possible policy for your situation.
There is one main way in which auto insurance companies like ours gets the information that we need.
Are Car Insurance Companies Sharing Information With Each Other?
In a very, very broad sense, you could say that car insurance companies share information. However, it is not in the way that you might think. While car insurance companies can share a source for that information, they are not exchanging the information amongst one another. Rather, Florida auto insurance companies like ours will utilize a service that provides reports. This is where your driving history and other pieces of relevant information can be obtained.
In order to determine the details of your policy, an insurance company will use this report to create an idea of your potential risk as a driver. Your MVR and CLUE reports will play a significant role in determining the sort of policy you are offered. This information is still not sold to non-insurance companies.
However, keep in mind that while these reports are consistent, regardless of the car insurance company that purchases them, they can be interpreted differently. One of the reasons why you can find yourself with a range of quotes to choose from, when you go shopping for the best Florida auto insurance coverage, is because different companies assess potential risk differently.
Some are making the argument that auto insurance companies should be allowed to share information with one another. The main potential benefit would be a streamlined application process, combined with the ability to cut down on potential fraud.
Should rental car insurance be purchased?
If you are thinking about renting a vehicle for an upcoming vacation or road trip, and aren’t quite sure of whether or not you should be purchasing rental car insurance from that rental car service, you want to pay close attention to the details that we highlight below.
You see, a lot of rental car agencies are going to tell you that while your traditional car insurance is going to provide plenty of coverage in the event that something happens to your rental vehicle, there are a number of circumstances where nothing will protect you aside from the (often times expensive) daily rate insurance that they sell you directly.
Trying to navigate the choice between taking advantage of rental car insurance and ignoring it altogether can be tough, particularly if you haven’t had to make this kind of decision the past. Hopefully we are able to shed a little bit of light on the subject for you below to make smart decisions moving forward.
Your car insurance will almost always provide you with all the protection you need
Your personal automobile car coverage is almost always going to include rental car coverage as well – especially if you have collision and comprehensive coverage attached to your policy.
Collision coverage in particular is where rental car insurance becomes obsolete, and if you have this attached to your policy you are literally throwing away money choosing to take advantage of the rental car insurance options provided by the rental company.
If you don’t have collision attached to your personal car insurance policy already, you still have options to avoid paying for that expensive insurance from the rental agency
If you have already paid off the loan that you owed for your vehicle or bought a vehicle with cash out right, the odds are pretty good that you’ve decided not to take advantage of collision or comprehensive coverage and cut your insurance bills at the same time.
This means you’ll either need to take advantage of that rental car insurance or use any major credit card that offers rental car insurance as an added benefit for your rental car payment.
A lot of people are unaware of the fact that their credit card provides rental insurance protection, and if you pay with your credit card that has this benefit attached, you won’t have to spend a penny rental car insurance moving forward.
Which Car Insurance Has Accident Forgiveness?
In terms of Florida auto insurance issues, the subject of “accident forgiveness” coverage is definitely something worth exploring in greater detail. If you are just beginning to learn about the specifics of auto insurance in Florida, it stands to reason that you are going to hear about accident forgiveness coverage. The first thing you want to do is understand what accident forgiveness entails. From there, you will want to determine whether or not this is a form of coverage that you can obtain.
While accident forgiveness coverage can certainly be useful, there are several elements to this subject that you are going to want to keep in mind.
Do I Qualify For Accident Forgiveness?
To be sure, accidents can happen to anyone. While practicing safe driving tips can cut down on the odds of an auto accident, while also ensuring the lowest possible auto insurance rates, the truth of the matter is that a car accident can happen to just about anyone. It just makes sense to want to have the best insurance possible, and to ensure that your financial security and vehicle are being protected on every possible front.
Accident forgiveness is one element to potential coverage. Most car insurance providers do offer this form of coverage, which essentially protects you from rate increases, in the event of an at-fault accident that occurs during your policy period. This consideration is generally only extended to first-time at-fault accidents. Furthermore, you will also want to keep in mind that this type of coverage is only extended to drivers with immaculate driving records. Some insurance providers will allow you to add other drivers to your accident forgiveness policy. However, this is not something that is assured, and you will want to discuss the possibility with any insurance provider that you are considering.
It is true that accident forgiveness can make for a pricey addition to your policy, even with a great driving record. However, the costs of adding this to your coverage can be very easily offset by the costs involved in having your rates increase. This is another example of paying a little now, and avoiding the possibility of paying a whole lot more later on.
You can save anywhere from 10-20%, depending on your driving record, and how many vehicles you are planning to purchase coverage for. If accident forgiveness is available to you, it is something you should certainly consider.