Cheap Car Insurance For Teens – How To Keep The Rates Down

Posted on September 24, 2009 by aishu

The teenager shopping for car insurance is at a decided disadvantage. Car insurance rates are based on age and driving experience as well as driving record. The best way for teenage drivers to work their way into better rates is stay on their parents policy in order to gain driving experience and a driving record.

: Cheap Car Insurance For Teens

There is a good chance that after three years and a clean driving record that a preferred policy from the parent’s insurance company can then be issued on the teen drivers that want to have their own car and pay for their own insurance. There are numerous discounts for the young driver today. Drivers training education is the most common discount. The drivers training course normally consist of 30 hours of driving with an authorized instructor along with 6 hours of classroom work.

Some companies give discounts for good students that carry a 3.0 grade point average in high school or college. There is also a resident student discount available by some insurance companies. The student has to live over 100 miles away from home to receive this discount.

Age Rating Tiers – Most car insurance companies have age rating tiers on young drivers. The ages from 16 to 21 is one tier and the rates are the highest in this time period. The next age tier begins at age 21 and ends at age 25. The rates drop significantly at age 21 and again at age 25.

Vehicles Make a Difference – The younger the driver the higher the rate. The rates are very high for young drivers on newer vehicles that require collision and comprehensive coverage. Older vehicles that only require liability coverage as a minimum state requirement is one way to cut costs for the teen driver. Utility vehicles like pick-up trucks receive a small discount and the teen driver can take advantage of that discount also. The teen driver needs to stay away from high performance vehicles and sports cars because the rates will be very high and these cars may not qualify for standard car insurance.

What Happens When Uninsured Cars To Be Crushed ?

Posted on September 23, 2009 by aishu

Are you one of the one in twenty motorists who regularly drive without insurance? You’d better watch out – your car could be heading for the crusher and shipped off to the world’s biggest scrap smelter in China!

car insurance

New powers now allow the police to seize, impound and crush any car found on the road without insurance. A pilot scheme was introduced in Durham last spring. Since then, police have impounded more than 1,200 cars. Of those around half have been crushed into cubes and packed off for smelting.

Operation Takeaway as the pilot scheme was known, has been such a big success, that police forces throughout the UK are enthusiastically polishing up their tow trucks. The scheme is now supported by a new national police database that’s supported by the insurance industry. It enables the police to check the insurance status of every car in the UK whilst they’re sitting in their patrol car.

Now if you’re caught red handed without car insurance you’re forced to hand your keys to the police at the roadside. There are no exceptions – this applies to everyone; it doesn’t matter if it’s just a forgetful mistake or conscious driving without insurance.

Then you’ll have to get your skates on! You’ve just 14 days to produce a valid insurance policy to the police and collect your car. And other costs mount up. Before you can collect your car, you have to pay the cost of kerbside recovery (around £105) and the cost of secure storage – and that could easily amount to £15 a day. So, if you leave collecting your car to the 14th day, you could be in for a bill for £315.

And if you don’t reclaim your car, off to the crusher it goes!

During the pilot scheme, the cost of crushing the cars was partly funded by Direct Line. They have estimated that Operation Takeaway prevented up to 2,000 accidents. And many of the cars impounded by the police were found to be un-roadworthy.

A police spokesman said, “ Uninsured drivers are often guilty of many other offences. Such as having neither driving licence nor MOT certificate. We are doing everything in our power to get these dangerous and illegal drivers off our roads”.

Indeed, uninsured drivers are much greater problem than many of us would expect. The Department of Transport recently reported that 1 in 20 motorists regularly drive without insurance. Furthermore, research from the Association of British Insurers discovered that uninsured drivers are amongst the most dangerous on the roads. On average they cause one accident every six months and are three times more likely to be convicted of driving without due care and attention.

And who pays for those uninsured accidents? We do! The average car insurance premium is loaded by £30 to cover the cost of damage caused by uninsured motorists. Across the UK that adds up to an extra £500 million paid out each year by the law-abiding motorists!

But that’s not the end of our financial pain. If an uninsured vehicle collides into your car, it’s still recorded as a “fault claim” on your policy. This means you’ll have to pay the excess when your car is repaired and unless you’ve got Claims Protection on your policy, your no-claims bonus will take a knocking. Over a two-year period, the reduction in your no claims bonus could easily cost £275 in higher premiums.

The move to take cars off the road and crush them has been warmly welcomed by the Association of British Insurers. The ABI has long criticised the leniency of punishment handed out by the courts to uninsured motorists but they still want tougher penalties. Offenders are typically fined just £150 to £200 – with time to pay – and this is much less than the average car insurance premium. Surely this cannot be true justice!

Auto Coverage Analyzer can help you make the right coverage choices

Posted on September 1, 2009 by aishu

Buying a car means taking a well thought out decision. However, sometimes taking a well-thought, wise decision gets difficult. This is even more so, when it involves a big investment decision like buying car and insuring it. One wrong decision and you might end up in a financial soup. Once you have already bought a car or you have owned a car for sometime now, it is time for getting it insured.

Factors

: Auto Coverage Analyzer

Now, when we come to think of car or for that matter any auto insurance there are quite a few factors that have to be considered before settling for a particular market offer. Analyzing these factors would determine which auto insurance policy suits your needs the best. Or else you might end up paying too high premium or not taking enough coverage for your automobile. First of all one has to consider what is the purpose of owning it. Whether it is for personal use, used as public transport such as private taxi, or used in transportation of heavy duty or light duty industrial goods or is it put to some other use. Age is also a major consideration. Old vehicles have to pay higher premium as compared to the new one. Type and model of the vehicle also play a major role. Like wise there are N number of factors that need to be checked out.

Getting The Right Insurance

When you buy auto insurance online there are large numbers of sites that offer auto insurance on each site there are quite a few number of market offers. This makes online shopping for the right kind of auto insurance a tedious task. However, there are some sites that provide automated tools that assist you in determining what kind of auto insurance would work the best for you and how much coverage do you need. These tools or auto coverage analyzer can go a long way in helping you save a whole lot of money on auto insurance.

Wrong auto insurance would leave you paying amounts that are too high and paying extra for coverage you may not need. On the other hand, if you choose amounts that are too low, you risk being uncovered in case of an accident. Thus, whether you’re shopping for new auto insurance or renewing your existing policy, Auto Coverage Analyzer can help you make the right coverage choices. All you have to do is answer a few question about your financial standings and your automobile conditions, price tag, coverage needs etc and the auto coverage analyzer would automatically generate coverage category wise auto policy value recommendations and explanation as to why is it needed.

5 Steps To Cheap Car Insurance Premiums

Posted on August 1, 2009 by aishu

Car insurance is compulsory, but it’s not necessary to pay more than you have to. A few simple steps combined with some time surfing for competitive car insurance rates really can save you serious money at renewal time.

Step 1 – Cut the Risk and Cut the Cost

Cheap Car Insurance Premiums

The easiest way to cut your car insurance premiums is to cut the risk and accept a higher voluntary excess. An insurer’s standard excess may be £100 but if you meet the first £250 of any claim, you’ll see a reduction in your premium. This is because you’re taking on more of the risk so you get a discount. But it’s a gamble, be aware that you might have to meet the cost of a broken window after an attempted theft or a bill for repairing bodywork damage after a car park crunch.

Step 2 – Security Means Savings

Fitting security devices can also result in cheap car insurance premiums. All major insurers insist on Thatcham rated security equipment, usually a minimum of an alarm. If you live in a high-risk area for car crime, it makes sense to fit extra security. It saves you money when your insurance renewal is due and gives you extra peace of mind.

Step 3 – Annual Mileage, Less Means More in Your Pocket

If your annual mileage is, 5,000 miles or less, ask insurers if they offer discounts for agreed mileage restrictions.

Step 4 – Named Drivers Trick

Adding a named driver to your policy can increase or reduce your premiums depending upon the named drivers age, sex and driving record. Adding a young driver will increase your premiums, particularly with a limited or poor driving record. However, adding a driver over 30 years old with a long and clean driving record can cut premiums, particularly if the named driver is female!

Step 5 – Shop Around and Save Even More

The biggest car insurance savings come from shopping around. There can be massive differences between the lowest and highest car insurance quotes for exactly the same car and driver(s). Start off using good comparitive online quotation sites, take their best quotes and go direct to the cheapest car insurance company for more specific quotes.

So next time your renewal quote arrives, don’t just accept it and give your money away to the Car Insurance Company. Use the steps above and get the right cover at the right price.

10 Ways to Save Big on Auto Insurance

Posted on July 30, 2009 by aishu

Auto insurance can make a big hole in your pocket. Insurance premiums vary hugely between companies, agencies or agents, brokers, and of course the make of the car you own and your credit rating. To pay lowest auto insurance you must:

: Auto Insurance

1. Always maintain a good driving record.

2. Never accept the first estimate you receive. Be wise and check comparisons of different insurance providers at your state insurance department website or phone them. Their addresses and contact numbers can be accessed from the consumer action website. Be sure to get competitive quotes from different insurance providers. Contact providers that are strongly recommended by people you know well. Keep your peace of mind by checking the financial stability of the companies with rating companies like A.M. Best as well as in forums and blogs.

3. Complete a market survey well before you select a car make and make a comparative table of insurance and other hidden costs. Find out which features increase insurance premiums and which ones reduce premiums. For example if parts of a certain make are hard to find or expensive such cars will have huge insurance premiums, similarly installation of anti-theft devices or an extra brake system lowers insurance premiums. Many questions are answered by the Insurance Institute for Highway Safety.

4. Choose to have higher deductibles this will reduce the burden by at least 15-25%. But look at your finances first and determine whether you can set aside US$ 200-US$1000 periodically to create an emergency vehicle fund.

5. Consider availing the insurance from the same company that has you covered for home, accident, or life. Many companies offer concessions to clients who have more than one kind of policy. Known as a multi-policy discount this could benefit you.

6. Most policies are based on your personal credit record. Having an unshakeable credit history can lower costs. Pay bills on time, don’t avail too many loans, and be sure that credit balances are as low as possible.

7. Avoid duplicating medical coverage. Find out whether eliminating medical cover in auto insurance will reduce your premiums or the personal injury protection costs. In some places the reduction is as much as 40%. So, if you have adequate health insurance you could weigh the pros and cons of eliminating this in auto insurance.

8. Find out if insurance premiums are dependant on where you stay. Sometimes staying in a rural community or suburbs as against the city center could save you a bundle.

9. Take advantages of discounts like low risk career, low mileage, taking public transport to work, car pooling, no violations or accidents, taking defensive driving courses, following safety rules and regulations, or having a child who studies far away.

10. Use the reductions offered for insuring more than one car belonging to the family. Many companies have special offers for corporate organizations, club members, professional groups, alumni groups, or clubs.

Make time to make a big saving. Check through all the parameters and mark areas where a saving can be made. The market is competitive and you can be the beneficiary.

How Does a Speeding Ticket Affect Auto Insurance Rates

Posted on March 16, 2009 by aishu

What Makes A Speeding Ticket Different?

According to InsWeb.com, Auto Insurance Companies charge more for speeding infractions because of the inherent risk of those drivers. They theorize that speeders are more reckless and more likely to cause accidents in the future. These accidents, of course, then cost the Auto Insurance Company in damages and administrative fees. How to cover this risk? They tack on a surcharge for speeding tickets, hoping that this will offset future expenditures. The extra fee also acts as a deterrent to drivers who might press the gas pedal down a bit too far.

How Long Will I Have To Pay?

Times differ between states, but the range is between 3 to 5 years. The ticket stays on your driving abstract, so the infraction is visible even if you move from New York to Alaska. The Auto Insurance Company figures that this is enough time for irresponsible or reckless drivers to learn better habits and not speed in the future. However, it’s also enough time for other infractions to occur. The first moving violation may only cause a slight rise in Auto Insurance Rates, but subsequent missteps bring steep fees.

How Much Might A Ticket Cost?

In the long run, that $50 ticket can cost a nice chunk of change. With many states adding court surcharges of $250 or more for a moving violation on top of insurance surcharges, it pays to keep it slow. According to MSN Money, “an experienced driver in California with a single-car policy and a good driving record, [pays] the average Auto Insurance Rates statewide for liability, collision and comprehensive coverage, $765 annually. If you were a Prudential Financial customer you’d get a 25 percent good-driver discount and pay only $574. One speeding ticket would mean a roughly 27 percent increase from the base premium…a $207 annual increase, or $621 more over three years.” If this is followed with more tickets, Auto Insurance Rates increase by 40 percent and the Good Driver discount is canceled. Third infractions raise costs up to 60 percent over that original base Auto Insurance Rate. That’s the extra rate paid every year, which adds up to thousands more.

Can I Do Anything About The Surcharge?

There are several actions that drivers can take when faced with a ticket. First, attempt to defend yourself in court. Often, a judge will knock down the infraction to something more minor that will save you money. Avoid simply sending in a check in hopes of skipping traffic court. Going through the process may seem nerve-wracking, but will save dollars in the long run. Second, see if your state offers ticket forgiveness in exchange for traffic school attendance. Traffic school takes place on a weekend for several hours and students are given a certificate at the time of completion that can be turned in to the Auto Insurance Company as proof. The few weekend hours cost nothing next to thousands in surcharges, so explore that option. Third, if the ticket is for a minor moving infraction (going a few miles an hour over the limit), certain states allow dismissal of the ticket if there are no other infractions in the driver’s recent history. Ask the judge or call the court of the municipality in question.

Look for Another Auto Insurance Company

Don’t forget to shop around and see if there’s cheaper coverage out there. Auto Insurance Companies still want your business, even with a few dings on the record. Drivers can often find deals that can chop their bill by a nice amount. Many people have infractions, so don’t feel like you’re trapped with one rate because no other company will take you. Proactive action can save money in the long run.

How Does a DUI Affect Auto Insurance Rates?

Posted on March 16, 2009 by aishu

State laws: The punishments for driving under the influence differ from state to state, but each state will suspend your license from 30 days to one year. To regain your license, you must fill out a SR-22 form to prove that you have Auto Insurance and submit it to a licensing agency. The Auto Insurance Companies is required by law to inform the licensing agency if your insurance expires or is cancelled.

Insurance premiums: You must obtain the SR-22 form from your insurance agency. This informs the agency that you were drinking and driving, and will mark you as a high risk driver. The insurance company will up your Auto Insurance Rates because you will no longer be considered a safe driver. A conviction of a DUI or DWI could result in doubled or tripled premiums. However, there are a few Auto Insurance Companies that deal with high-risk drivers. It is important to note that not all Auto Insurance Companies will provide an SR-22, and upon request will cancel or refuse renewal of your policy. While it varies from state to state, a DUI will most likely remain on your record for at least three years.

Stay safe: Please do not drink and drive. Drinking and driving is idiotic. Not only does it risk your own life and that of others, it will also increase your Auto Insurance Rates, and include possible jail time. No life, yours or that of any other is worth getting into a car when you have been drinking.

Most state laws include harsher penalties for drunk drivers, especially if a child is in the car, someone is injured, you are under 21, or if your blood alcohol level is above a certain percentage. In much of the United States, .08 is considered legally intoxicated, and in 40 states the penalties are doubled if the levels are .15 to .20 or higher.

Tips to Compare Auto Insurance Rates

Posted on March 13, 2009 by aishu

How to Compare Auto Insurance Rates

Drivers looking to save money on auto their insurance rates must obtain several quotes and compare policies. The internet has made is much easier for drivers to obtain several auto insurance quotes online, so the next step is for the driver to make sure she is getting the best auto insurance rate possible. Here are a few tips on how to compare auto insurance rates.

Compare the coverages. Before you can compare the auto rates you have to make sure that the coverages are the same. Comparing apples and oranges is no way to truly compare auto insurance rates. Make sure the coverages are comparable.

Analyze the deductibles. There is an inverse relationship between the deductible and the your auto insurance rate. The higher the deductible, the lower the rate and visa versa. Therefore, if you compare two policies that have the same annual premium but one has a higher deductible, the policy with the higher deductible is charging a higher rate.

Research the insurance companies financial standings. A very low auto insurance rate from an insurance company that is not financially sound, is tantamount to potentially paying your own an insurance claim. You want an auto insurance company that is financial stable and is going to be around when you need them.

Review of the underwriting basis.Auto Insurance companies base the auto insurance rate based on things like driving record, years driving, marital status, age of driver, vehicle information and a host of other criteria. Make sure that he underwriting information for each policy included in the comparison is the same. Incorrect underwriting information may inflate your auto insurance rate.

Review the premium payment options. While this does not directly affect your auto insurance rate, it does affect your cash flow. Some insurance companies allow policyholders to pay their premier monthly while others quarterly and others semi annually. Depending on your cash flow, you may want to select an insurance company that offers monthly premium payment. Find out, however, if there is a charge for paying monthly (or a discount for paying upfront).

Consider the insurance companies accessibility. Having a low auto insurance rate is great for the pocketbook but if you are unable to access the claims department or the underwriting department when you need them, then selecting the lowest rate might not be the best solution. Many insurance companies allow policyholders to add and delete vehicles and order auto ID cards over the Internet. If such features are important to you, factor that into your comparison.

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