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November 13, 2020

Why You Need Continuous Car Insurance Coverage

Some people think that if they do not own a car or if they do not drive regularly, then they do not need car insurance. What good is having a policy if you are not going to get behind the wheel? a close up of a car

Actually, there are a lot of reasons why you must always have car insurance for as long as you are a licensed driver. Even if you do not own a car, then you still need coverage whenever you do drive. It is there not only to protect you, but also to make sure that you can develop a formidable reputation as a policyholder, which can help you save money well into the future. 

Consider just a few of the reasons why you always need car insurance

1. Dropping Coverage Is Illegal 

Most states require all registered drivers to carry auto insurance on their vehicles. This means that if you own a car, then it still needs coverage even if you do not drive often. A failure to carry car insurance could result in a license suspension and other penalties. Most of the time, states require drivers to carry liability coverage, which does not cover a particular car. Instead, it pays for the damage of that a policyholder (or someone driving their car with their permission) causes to others when they cause a wreck. 

2. Even Cars You Do Not Use Could Still Sustain Damage 

You might live in a walkable city, and only drive your car infrequently when you go out of town. However, even if it stays in your garage most of the time, it could still sustain damage. It might catch fire; someone might steal it or vandalize it while trying to commit the theft. Severe weather could damage the car if you park it out in the open. That is why you should always keep comprehensive coverage on your plan. This is physical damage insurance that protects your car against vehicle damage that is not related to a collision. 

3. Continuous Coverage Lowers Your Risk Rating 

All insurers will calculate your risk rating when deciding whether to offer you a policy and your premiums. Your risk rating measures your reliability as a customer and your likelihood of making claims on your policy. If you have a higher risk rating, then you might pay a higher premium or have your policy application denied. 

One thing that insurers will want to know is if you will reliably maintain and pay for your plan. Therefore, if they see that you have been uninsured in the past, then this might concern them. They might have to charge you more for your plan. As a result, drivers who have always had coverage are usually the ones who will receive the most cost benefits through their plans. 

Tags: auto, car, coverage, insurance

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