I’m helping my boyfriend find low cost car insurance. What should we do?  We need cheap car insurance like today!

Rose

Atlanta, GA

Believe it or not Rose but getting cheap car insurance is quite easy. Here’s how.

First, you need to remember that your boyfriend’s driving records plays a significant role on how much he will be paying for his auto insurance. Insurers will dig into his driving records to see any violation or accident he’s been involved with. This includes minor violations like parking tickets to even serious like a DUI conviction. The more violations and accidents your boyfriend has, the higher his auto insurance premiums will be.

Second, your boyfriend’s credit score also has a say on his insurance rates. If there are unsettled loans, he better start cleaning up his credit history to get lower auto insurance rates.

Third, it could also help him get better insurance rates if he would drive his car less frequently. With that he could get a discount for low annual mileage.

Fourth, get a secured parking place for his vehicle. If your insurer found that his parking place gives enough protection to your boyfriend’s car then he may also enjoy getting lower auto insurance rates.

Fifth and lastly, get safety devices like airbags and car alarms and have those installed in his car. These things would also help you find better insurance deal for your boyfriend.

I’m a teen driver and I am well aware that teen auto insurance rates are astronomical. Can I still get insurance policy that is within my budget? Help is badly needed here. thanks!

Regina

Tallahassee, FL

Although teen auto insurance in most cases can really be expensive, there are still ways to get cheap teen auto insurance so you don’t have to worry that much Regina.

For one, you must remember to drive carefully at all times. As you see Regina, the reason why insurance companies set higher insurance rates for teen drivers is because teen drivers are high risk drivers. Why? It’s because teens do not have enough experience yet on the road. So oftentimes, they are involved in accidents. So as much as possible, do NOT even think about getting traffic tickets under your name and worse, even getting into an accident. In the long run, insurers will lower your insurance rates if your driving records will stay clean.

Another, make sure that you aim for an average of 2.0 or higher because this will significantly help you get lower auto insurance rates.

Also, if you still haven’t decided on the kind of vehicle you will be operating then this is the right time. Get a vehicle that is inexpensive. This will also lower your auto insurance rates.

Plus, consider increasing your deductibles. It would be better to get a deductible of $1000 instead of $500 because this could also lower your insurance rates.

Lastly, do NOT consider buying your own insurance policy yet. If you can be added under your parents insurance policy, the better. You would get lower insurance rates for that.

I was wondering how car insurance is calculated by insurers and if you think it would be possible to know your rate based on the information to determine how much or how little a rate may be for a certain individual?

Marion

Philadelphia, PA

Car insurance companies base their calculation on statistics regarding your likelihood to get involved in an accident. These data are acquired by your carrier from government and private sources. Companies will usually classify your risk as:

Preferred: you are least likely to meet a road accident or other incidents that result to damages on your vehicle.
Standard: while you aren’t the safest motorist in town, you are not that awful either.

Non-standard: this tells you to be more cautious with your car because you are very likely to file a claim, something that nobody really wants.

So now you are wondering how come your company thinks you are prone to vehicular accidents. Take a look at the factors below that affect your car insurance rating:

Age

All insurance carriers charge teens higher than more experienced drivers. Statistically, drivers above 25 years old have less accident records than drivers under that age. Drivers aged 50 to 65 are rated the cheapest in relation to age. It is unfortunate that car crashes are the top cause of death for teenagers, especially 16 year-olds.They are three times more likely to engage in a fatal accidents.

Gender

Car insurance carriers are not gender biased-it’s pure statistics. Female drivers meet lesser accidents than male, plainly because males drive 60%-65% more.

Marital Status

Married drivers are granted lower rates because they have lesser claim statistics.

Geography

Car insurers do look into police records, or at least not literally. They charge higher to customers who reside in areas that are prone to theft, fire, and other non-collision related damages.

Vehicle Usage

Cars used for business, e.g. product delivery, are given more expensive rates. The opposite is true for cars used solely for leisure. This is because they are least used and the probability for accident is lesser. Therefore, your work will affect your rating.

Other variables for your car insurance premium are:

• Vehicle type, make, and model: more expensive means higher rates
• Education: its pays to take advance driving courses
• Distance from home to work
• Years of driving experience
• Credit record: pays to have a clean one

What do I need to know before I buy car insurance?

Mel

Cincinnati, OH

A prudent car insurance buyer would never believe everything a salesman would pitch-in. Should you be a wise buyer in purchasing car insurance, then never let insurers tell you what’s best for you. You might just get ripped-off. To determine the right amount of coverage for your insurance, imagine of what you want to happen at times of accidents. Then ask yourself if it is a practical choice.

In a world where accidents are possible, the best choices for any person to do is to be insured. No matter how safe you think your driving skills are, you can never tell what meets you on the road. This clearly denotes how needed a vehicle insurance is at all times.

People have been buying car insurance. Having been explained repetitively, we still have uncertainties on how much insurance should be obtained. Despite the minimum requirements established by the state, we still wonder if this is adequate to cover for our liabilities at times of accidents.

If you get a lowest coverage required by the state, would this be enough to pay the cost of repairs for your vehicle after a terrible collision. If at fault, will the minimum liability be enough to cover those who you have greatly inconvenienced? Would you assets be sufficient to provide for your shortage? Will I have sufficient to pay for my medical expenses in a worst-case scenario? On the other hand, will I able to cover for the medical expenses of my victims? Is it practical to let the company pay for everything without you having to shell out a single cent?

Simple questions like this can help you evaluate how much car insurance you should be getting. The bottom-line is to make sure that the amount you get puts you in a win-win situation at all times.

I have no idea what a deductible is in car insurance. What is a deductible?

Myers

Chicago IL

Prudent insurance buyers would always find a strategy to decrease their car insurance prices. Over time, people have found tactics on how to do this. One of which is by stretching deductibles. So what is a deductible?

Insurance deductible is the money that you would have shell out for the damages incurred by your car during an accident. It is also a portion of the total estimate for car replacement that you would have to shoulder. This will become your personal expenditure. It might not sound approving on your part to compensate for something that you were anticipating to be covered. However, this is what they consider a necessary evil in order to extract savings from your car insurence expense.

Most car insurance companies provide range of insurance deductible for you to avail. They amount to $100-$1,000. The most customary value chosen is $500 dollars. The most optimal value for the highest deductible is $1,000. However, you can transcend to a higher deductible if your budget permits you to do so.

You really have to think in choosing what range of deductible you will be availing. This is to ensure that by the time you have to make claims; you will not end up having to pay for entire cost of damage.

Choosing the amount for your deductible should also be a balance. It can also help if you know yourself well as a driver and if you know your finances well. As they say, if you have had history of accidents, then it might not be smart to increase your insurance deductible. However, if you are so sure that you can go on years without accidents, and if you are sure, you are a better driver, why not go for the highest insurance deductible. You should also be sure to have the deductible amount set aside at all times.