Teenagers usually end up always costing more than you think however finding affordable car insurance is much different than trying to secure the seasons latest must-have accessory.
Insurance companies are known for factoring many elements towards the calculation of your auto insurance premiums and although life seems to be good without a mortgage, credit card bills and sometime even a job – teenagers often find car insurance premiums to be very high.
If you (or most likely your parents) are buying a new car then its very wise to understand the cost of a new driver car insurance policy before visiting a car dealership as sometimes this cost can be equal to or greater than the car loan payment itself.
The most important thing is to remember – you are not alone.
Every teenage driver and every parent shake at the thought of insurance premiums so you need to focus on shopping around and not be scared off by the first quote you get.
Most teenage drivers will find insurance premiums quite high regardless of where you live and this should be expected for the first couple years however if you shop around it is very possible to find policies which are far more affordable without sacrificing insurance coverage.
The key to finding affordable teenage car insurance is simple really – shop around.
Once a policy is chosen the rest of the responsibility to get lower monthly payments lies with you. Keys for success including maintaining a good driving record, possibly even considering a less expensive vehicle, opting for a less “stylish” car the first time around and more.
Any consumer considering purchasing a car for a teenager really should speak with an insurance agent before entering the car dealership. Learn more about car insurance rates here.
By: H. Berry
Posts Tagged ‘Car Insurance Rates’
Car Insurance Tips – Compare Rates
January 18th, 2010
What Can Affect Your Rate?
It doesn’t matter what type of insurance you plan to attain, your going to have to consider the many factors that can affect your rate. A large factor that determines your rate is your location. Some locations file more claims than others, and insurance companies are well aware of this. This rule applies to any type of insurance, including car, health, or even pets!
Another factor is your personal claim history. This is a huge factor and many people are affected by it. For example, someone who has a few accidents on their driving record, recent or not, will usually have a much harder time finding a good rate on their car insurance. If they are at a large risk they may have a hard time finding a company to insure them at all! People looking to lower their car insurance rates have many options available to them. Car insurance companies like to see individuals who have graduated from some type of driving school. They also like to see the purchase of a safe car, with airbags, seat belts, and anti-theft devices.
Always Compare Insurance Rates!
The best thing you can do that can affect your insurance rate to choose your insurance company wisely. Not all companies are created equal, and some are much more expensive than others. Each company has it’s own system of determining risk factors and therefore your overall price. Companies also have different packages to choose from, with different levels of coverage. Be sure to let your insurance company know what needs you require to find out which plan works best for you and your situation. Shopping around for rates is by far the best way you can get the best rate, so get out there and take notes so you can jot down the pros and cons of each company. Only then will you be able to make the best decision for you and your needs.
An easy way to compare insurance companies is online. Major insurance companies usually have a website that give you free online quotes. It can be as simple as entering in your name, your social, and a few personal questions. Usually you will get an estimate immediately. Eventually you will get a call from a qualified agent who has reviewed your information and can give you a more exact estimate. This is a great way to compare rates. You don’t need to travel, you can compare rates in your underwear and insurance companies will be competing for your business. You can’t be that!
By: Timothy Croy
Tips For Keeping Car Insurance Rates Low
January 15th, 2010
Aside from avoiding being in an accident, there are ways in which car insurance rates can be kept low. However, you sometimes have to be the vigilant one when it comes to finding ways to keep your rates low. In other words, you have to remind the car insurance company that there has to be some way within their system that will allow you to keep a few more bucks in your pocket. This is usually what prompts them to look and see what it is they can do for you, especially if you tell them that another company has got a knockout deal that you would love to take advantage of. That will usually get them up on their toes and make them look for a solution for you.
Discounts
Insurance companies have discount programs for individuals who meet certain criteria. These discounts can usually save around 10% on a policy and they can be stacked. What that means is that multiple discounts can be applied to the same account. Now you’re probably wondering how the insurance companies can still insure a vehicle if the policyholder qualifies for so many discounts. Well, that is their secret, but the truth is that they do have these things to help you save money. Many people take advantage of them and many fail to. It isn’t because the insurance company doesn’t want their policyholders to save money. Sometimes they simply don’t think about it when the policy is being opened. If they do mention certain discounts to you, they still may not be listing them all.
Below is an example of some of the discounts you can take advantage of:
• Good student discount: This discount applies to college students who maintain a certain grade point average. If you are a parent with a teen driver on your insurance, you can also use this to save some money. You simply bring in grade reports every quarter or semester. Grades have to remain satisfactory in order to keep the discount. If grades drop, the discount is lost. If they go back up, the discount can be reinstated.
• Multi-line discount: This is when you have more than one policy on your account. You might have your homeowner’s insurance, life insurance, and car insurance on the same account. Then again, you may have more than one car on your auto insurance and a life insurance policy. The combinations can go on and on and usually involve up to three accounts.
• Automatic debit: This is when you authorize the insurance company to take your payment out of your checking account at the same time each month. This usually saves a few bucks each month.
Common sense
As stated before, maintaining a good driving record can keep car insurance rates low. You can also keep your rates low by not buying new cars for teenagers in your home. You can also be mindful of the insurance rates on any new cars that you are considering. Always call your insurance company and get a quote on cars you are interested in buying. It is amazing how often insurance rates determine whether or not a person purchases a certain vehicle. By doing this, you can save yourself a lot of money. If it is not necessary for you to have the car with the higher insurance rate, then it is feasible for you to buy the other car that has the better rate.
By asking your insurance about any discounts you may qualify, being mindful of the types of vehicles you purchase, and driving as carefully as possible, you can secure the lowest insurance rates and keep them that way.
By: Amy Nutt