Car insurance is a part of life for everyone in the United States that wishes to drive on the roads. The states require that a car has some form of insurance coverage. This insurance has to be active for the car before it is legally acceptable to be driving. Car insurance coverage lasts a predetermined amount of time, which gives it a start date and an end date. The amount of time an insurance policy covers is called the term of the policy. The term of the policy has a specific start date and a specific end date. It is important for the driver to know these dates. Knowing the term of the policy can help avoid tickets and being held responsible for an accident.
Avoiding tickets is a good way to keep out of court and keep the costs of insurance down. Tickets go on a person's driving record which will affect the cost of his insurance in the future. Driving an uninsured vehicle will get the driver a ticket and a court appearance in most cases. If the person knows the term of his policy, he can get a ride from someone else until the policy becomes active or use public transportation to get around. Since tickets cost money on their own and cost more when it comes time to renew a car insurance policy, it is best to avoid getting one whenever possible.
Car insurance is designed to pay for damages to vehicles and the medical bills of passengers in case of a collision. If a driver is out driving his car either before the term of his policy has officially begun or after it has ended, the insurance company does not have to pay anything. All of that financial responsibility will rest with the driver found at fault for causing the collision. This can be a heavy financial burden for a person that is easily avoidable. If a driver purchases an insurance policy, he simply has to wait until his policy becomes active to drive. If a driver is renewing a policy, there should be no problem as long as it is renewed on time.
Late renewal can cause a lapse in coverage that will leave a driver uninsured for a few days. If a driver renews on time, the new car insurance term should begin as the other one ends, leaving the driver covered without any breaks. The term of an insurance policy is really simple. It is the set amount of time that a car insurance policy remains active and is marked by a specific start and end date. Make sure to only operate a vehicle when the policy is active.