With people’s incomes often times fluctuating and car insurance rates rising every year, it is important to take the right steps to ensure auto insurance rates are as low as possible. Those who don’t have a car but still drive from time to time and who eventually want to buy a car need to maintain liability insurance for themselves. If they don’t, they will be stuck paying high-risk rates for their auto insurance for at least the first six months they own it, and that greatly increases the cost of owning a vehicle.
Auto Insurers Require Continuous Coverage
When going without a car for a period of time and not having any kind of auto insurance coverage, auto insurers will hold that
against people when they start to drive their own vehicles. A simple solution is to have a relative or friend carry someone as a named insured on their auto insurance policy for liability coverage only when possible. That gives the individual a recent history of being insured and won’t cause auto insurers to make them pay for high-risk car insurance. Individuals also can buy open auto liability insurance to any vehicle they might be driving for low rates and help to ensure they won’t have to pay high-risk rates for up to a year when they get their next vehicle.
Motorcycle Insurance Does Not Count
Motorcycles can be fully licensed, insured and ridden regularly, but if the owner of the motorcycle does not also have at least liability auto insurance, the motorcycle insurance will not count as maintaining auto insurance. Because motorcycles generally pose a greater risk to motorcycle riders than other vehicles or property, insurers want to see auto insurance coverage in place to help ensure no accidents or other driving mishaps have occurred involving the potential driver and policyholder. So if only riding a motorcycle, it is wise to also carry minimal levels of auto liability insurance.
Are you looking to buy a car but don’t have current auto insurance coverage?
the policyholder pay premiums that provide the eventual cash benefit. Most term life policies also expire with no death benefit paid. That happens because the insured individual almost always outlives the term for which the life insurance policy provides financial protection. With term life, policyholders don’t have to undergo health exams or pay high premiums like whole life insurance plans require.
perils policy that specifically lists those potential hazards for which the policyholder will be indemnified. They include internal flooding, fire, lightning, power outages, vandalism, theft, falling objects and other common perils. Some homeowners insurance policies will name much more than 11 perils, and anything other than those perils that specifically are listed will not be covered. An open perils policy is different. With an open perils policy, only those perils that are excluded are listed, such as earthquakes, external flooding and other threats that are not insured against.
protection. Most homeowners insurance plans will pay for damages caused by internal flooding, but additional protection is needed for external flooding. People living in areas that are at-risk of flood damage generally have to buy their coverage through the National Flood Insurance Program, which is administered by the federal government. But the program is deep in debt and has been raising flood insurance rates to as high as $10,000 per year for homes in high-risk areas.
protection for internal flooding, as might happen when a water heater ruptures and no one is around to shut off the water supply. Because internal flooding mostly is under the control of homeowners, insurers can better assess risks and underwrite coverage. But when the flooding is external, the cause is Mother Nature most of the time, and no one controls Mother Nature.