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Auto Insurance and the High Risk Driver

Saving money on auto insurance should be fixed into anyone's crosshairs, especially when they have a spotty driving record. First and foremost, premiums can be saved by reducing the amount of insurance you carry. Although it sounds easy, driving a less expensive car where certain types of coverage are not needed (i.e. comprehensive, which insures your vehicle against damage caused by things other than collision, and collision.) In addition, high risk drivers can lower the amount of liability insurance as long as you have enough coverage as required by state law. However, lowering your liability coverage may be harmful if you own assets like a condominium or shop. These assets may be put in danger if damages exceed your liability coverage.

Insurance companies will not persecute high risk drivers forever. No points against you within a two or three year period will change insurers minds into considering you a good risk. If your credit rating improves progressively, this is a plus. Always be honest about your record when applying for insurance. Auto insurers like Geico and Progressive usualyl take 60 days to verify your record. If a lie is found, your policy will be cancelled quickly and getting insurance later on will be an adventure.

High risk drivers should also shop around. Many insurance companies are specifically formulated to tackle on high risk drivers. However, keep in mind rates may be high. The same applies to low credit score borrowers looking for low interest rates. If your driving record is poor, shoot high with your credit score by paying bills on time, paying more than the minimum each month, and staying diligent. Slowly but surely, saving money on auto insurance will be easy as the breeze.

Posted on: 12/8/06 4:42:00 P

 

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