Welcome to Car Insurance Tips

Renewing Your Car Insurance Policy

To renew your auto insurance policy, you must do so while the policy is still under effect. If you delay, your car insurance policy will be deemed invalid, and your auto will be uninsured.

Driving your car at that point is considered a traffic violation. If you want to renew your policy, and the policy is invalid, you must bring your car to the car insurance office for inspection before the renewal can take place.

Auto Insurance: Six-Month Policy Terms

Auto insurance companies incur less risk if they insure drivers every six months. After the six-month period, the car insurance company is able to re-evaluate the driver's record and either increase or decrease the existing premium to reflect the driver's probability of having an accident or moving violation.

If an auto insurance company does write a 12-month policy, the premiums will be higher, since the company is taking a greater risk of locking into a rate for the entire year.

Rewarding Exceptional Drivers: the Car Insurance No-Claims Bonus

If your driving record is clean -- no traffic or moving violations -- you may be eligible for a no-claims bonus on your comprehensive car insurance policy.

The discount is given as follows:
* 20 percent for the first year;
* 35 percent for the second year;
* 50 percent for the third year;
* 65 percent for the 4th year (which is the maximum rate)

If you buy a new car, you can transfer your no-claims auto insurance bonus from the current insurance policy to the new one.