Are you accidentally uninsured or underinsured?

Many drivers are uninsured. In fact, the number could be as high as 13 percent of all drivers, says the Insurance Research Council. Sometimes, drivers go uninsured out of economic necessity. That is, they feel they cannot afford car insurance or prioritize other bills ahead of insurance. Sometimes, a driver is uninsured because he or she simply does not care about that.

Other times, though, a driver becomes uninsured accidentally, and it can be quite dismaying when you get into an accident to learn that you are actually uninsured.

Forgetting to pay monthly

A common way to become accidentally uninsured is forgetting to pay your premium every month or whenever it is due. It is an honest mistake but can be costly in the case of serious injuries. Fortunately, automatic bank withdrawals have made it easier than ever to pay and to pay on time. If your budget situation allows, take advantage of this option. Also, keep your current contact information as up to date as possible so you do not miss important communications from your insurance company.

Buying a new car

Sometimes, people buy a new car and drive it off the lot, only to get involved in a crash soon after. In many cases, you should have coverage, but only to the extent that your previous car was and sometimes only for a limited time such as four days if you have not told your insurance agent about the purchase.

So, say that you had the minimum amount of insurance on your old car and drive off the lot with a car worth five times more. If you do not let your insurance company know about the change, you put yourself at risk for being severely underinsured if you get into a crash. The cost of medical bills and car repairs is on the rise, so if you buy a new car during the weekend when your insurance agent’s office might be closed, be careful.


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