AAA Warns Against Cutting Back on Insurance

Auto Insurance News

The AAA is warning residents in the state of Virginia that the organization is seeing troubling patterns with many motorists trying to cut back on their expenses. The automobile club and insurance provider says that more and more policy holders are skimping out on car insurance deductibles which reduces the coverage offered by many insurance companies. As a result, even minor accidents can result to costly repairs and a tarnished driving record.

The auto association says that with the summer months finally arriving, more drivers and their families are taking to the road. This would eventually mean higher accident risks. Without the proper insurance policies and added coverage, vehicular accidents would cost many residents a considerable amount of money, not to mention the added legal hassle.

Worse, some drivers have opted not to renew their insurance policies to save money with the economic recession still going strong.

One of these motorists, Paul Scott, says that he now regrets not having his policy renewed. Scott was involved in a minor fender bender but because he was driving uninsured, he was fined $500 and had the accident permanently written on his driving record. In Virginia, that would mean Scott’s premiums will go up when he applies for car insurance.

Insurance agents have also warned drivers against driving underinsured or even uninsured. Larry Fallen, of Fallen and Associates, says that in the three decades he has been in the industry, he has not seen a decline in the number of drivers trimming down their insurance expenses. Fallen says that is a good thing, especially when motorists also have to deal with liability issues. He adds that when caught without liability coverage, drivers could end up losing their homes and life savings if they get sued.

The AAA is now handing out free tips for drivers to avoid being victims themselves. The organization suggests that motorists should ask their insurers about discounts given with multiple policies. Second, drivers can also increase their deductibles for more savings. Third, motorists should adjust their coverage as their vehicles age. And Last, the AAA recommends looking for other insurers to ensure that the present providers will offer discounts and special rates.