We all remember taking driving lessons to earn that special license that would grant us freedom to travel at our leisure. Driving is simply a necessity for some people, but many of us believe being able to take a car to any destination is a huge triumph that signifies a significant milestone in life.
However, we only realize how stressful car ownership can be when we become car owners. Sure, you might be able to traverse states and countries, but the costs inherent with owning a vehicle can often be overwhelming.
Veteran drivers will adamantly warn newcomers that until they make more money, owning and running a car will be a constant strain on their finances. Nevertheless, the inexperienced will ignore what they hear in favor of living out their dreams with only happiness in mind.
If you are a new driver and are yet to discover how your bank account will be affected, you should be aware that gas, maintenance, and the initial purchase price will put a dent in your finances, but it’s your insurance that’s really going to set you back.
You’d be surprised by how many new drivers become victims of a small scrape. Most bumps and crashes don’t result in injuries, but they can become costly mishaps if you don’t get a good insurance deal. You need to look for lower cost car insurance (in California especially) to make sure you have prepared yourself for unfortunate accidents. Below, we’ll list five questions you should ask your auto insurer to be aware of what your insurance covers.
Are my Belongings Covered?
You might assume the insurance will reimburse you for the value of anything damaged inside your car resulting from a car accident. Unfortunately, basic insurance packages are unlikely to cover you for personal possessions, mainly due to the fact your insurer won’t know the value of what’s inside your car. If you intend to keep belongings in your car permanently, you might want to find out whether you can have them covered.
What Happens if My Pets Are Injured?
Again, most auto insurance packages won’t cover vet bills in the event of an accident. It’s difficult to make sure pets are safe in vehicles when driving, and though insurers will cover the costs of the required repairs, they won’t be liable to cover the costs of your pet’s injuries. You might be able to negotiate cover with your auto insurer. However, you’ll probably need to buy pet insurance in addition to your car insurance to have pets included.
What Are My Payment Options?
Insurance premiums can be very high for first-time drivers and those who’ve had previous criminal charges or multiple crashes. Most insurers allow you to pay the total annual cost of your insurance in one lump sum, and they’ll probably offer a monthly payment plan, too. Just be aware that the monthly payment plan may look attractive, but you’ll end up paying more for annual insurance in the long run.
Does My Marital Status Affect My Premiums?
If you haven’t yet found your better half, you might have to pay slightly higher auto insurance premiums. Statistically, you’re more likely to bump your car if you’re single, perhaps because you’re more liable to be careless when you don’t have dependents. There’s little you can do to get around this minor hiccup, but your insurance premiums won’t actually drop by a huge percentage after you’re married.
What Could Make My Insurance Void?
It’s important to know what makes you liable to pay for repairs should your insurer have a reason to refrain from giving you compensation. Here are a few tips you’d benefit from taking on board.
- Tell your insurer about any modifications you make to your vehicle
- Be honest about any pre-existing medical conditions
- Try to be accurate with your estimated annual mileage
- Make sure to list all other drivers when applying for quote
- Don’t lie about any previous accidents or convictions
Auto insurance can be expensive for both new and experienced drivers, but it’s always better to be safe than sorry. Just make sure you take out insurance that covers you in any situation because the last thing you need is to be liable for the repair costs should you have an accident. As long as you choose the right insurer and a comprehensive package, you can feel confident that somebody has your back should anything unfortunate happen.
Are you getting a good deal on your car insurance?
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.