Posts Tagged ‘Insurance Premium’

I Need Cheap First Time Driver Car Insurance

Published by author on May 26th, 2009 - in First Time Driver Insurance

Reader’s Question:

Will you be charged a an expensive car insurance premium if you have never had insurance before? What can I do to get cheaper car insurance for first time insurance buyers?

John

Honolulu, HI

You have probably been told that insurance policies are very expensive nowadays. But you don’t have to turn back and forget about getting insurance. Aside from being required by law, it might come in handy.

Compare Quotes, Policies, and Reputation

While policies are indeed very expensive, you still have many choices to save since competition in the insurance industry is very healthy. Insurance companies want to beat each other in terms of rates, coverage, and services offered. Try to compare their rates in relation to the quality of services they offer. You may also want to find out about the way they deal with their customers; some companies might be too aggressive while some don’t make their policies clear. Ask some friends or check out online forums to get the most excellent services that you definitely deserve.

Driving Courses and Academic Records

Since it is your first time to purchase insurance, it is presumable that you are young. Younger drivers are charged more but you can acquire discounts if you have enrolled in defensive driving courses. This can save you up to 10%.

You can also get more discounts of you have outstanding academic records. An average of B or a 3.0 GPA will trim 10-25% off your insurance rates. Companies vary on the discounts they offer regarding academic performance so find the best quotes available.

Choose the Right Car

Sports car may make you look great, but they can make you poorer. Not only do they have sky-high sticker prices, they are also very expensive to insure. It is best to select cars which are cheaper to maintain. You may also install additional safety features such as laminated windshields and tire pressure monitors. The safety features and crashworthiness of your car are part of the evaluation.

Register as a Group

If there are still uninsured people in the neighborhood, ask them to tag along. Car insurance companies give group discounts. Or you can just ask your parents to include you in their policy instead of having your own.

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Need Cheap Young Drivers Car Insurance For 16 Year Old

Published by author on May 26th, 2009 - in First Time Driver Insurance

Reader’s Question:

I am 16 years old and I am planning on getting my own vehicle. I was wondering what the car insurance rates would be considering I am 16? Is there a way I can lower it?

Trish

Fairfield, CT

Do not be surprised if your car insurance premium is higher than you dad’s. That is because insurers, as a general rule, charge more to those who are more prone to accidents. Nobody’s accusing you of being irresponsible, but statistics has it that young drivers get involved in accidents more frequently than their older counterparts. After choosing the right vehicle, you must also look for the best insurance deal. Spend a few minutes and learn how to save a few or even a hundred dollars on your first car insurance purchase.

‘Cool’ isn’t that cool

Aside from being very expensive to maintain, sports and muscle cars have very costly premiums. You might want to choose an ordinary sedan. After all, everything boils down to mature attitude and safe driving.

Take time to learn more

Enrolling in more advanced driving lessons will chip a few dollars off your premium. Just be sure to pick those programs that are acknowledged by your state. Also, check out if the school you are enrolling for is recognized by your company.

Good achievers are better drivers

If you have excellent academic records, you qualify for another discount benefit. Companies generally grant students with 3.0 or higher GPA a 10% decrease from insurance premiums.

Let them know how far you are from home

Car insurers also offer discounts to students who live away from their homes. Discounts differ from one company to another so be wise enough to compare car insurance quotes before select your insurer.

Join the club

You can get a lower premium when you select the same company that insures your parents. Teens who join as a group acquire additional discounts, too.

Keep the traffic officer away

Keep your traffic record clean and you will pay less on your next payments. So keep that foot light on the gas and stay away from intoxication because your premium increases with every violation you make.

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Need Lower Car Insurance Rates

Published by author on May 23rd, 2009 - in Need auto insurance

Reader’s Question:

Can you give me some tips on how to lower my car insurance rates? I feel like I am overpaying for my insurances.

Gene

Indianapolis, IN

Car insurence may not be a basic human need but it is indispensable since most of us own cars. It is a basic requirement of the state for you to legally operate your vehicles. Despite being mandatory, some people still don’t purchase them. Times are hard and people barely afford to put food on the table. That is why it seems easy for them to eliminate this expense to allot their money on more important things.

However, car insurance isn’t pricey at all times. Just like purchasing other products, there is always a way to buy better deals at a lower price. Knowing these methods will help you pay for a more affordable insurance and get you out the risk of driving without them.

One method to use is by comparing the prices or quotes from various insurance companies. Check the prices versus the coverage. Seek opinions from other people you can trust. Then make a decision.

Second method is by choosing your car wisely. Always remember insurance companies also base their rates on the type of car you have. Safe cars have lower car insurance rates. For fancy cars, expect higher premiums.

Have you ever heard of bundled services for your internet, phone and cable? People have left their dial-up services to consolidate their services from one provider. The reason behind it: services are cheaper. This is the third method that you can use in order to get lower car insurance rates. Get all your insurances (life, homeowners, renters and car insurance) from one company.

Fourth method is to avoid getting in trouble with your creditors. Ensure that you will always be responsible in paying your debts and maintain low credit balance. Doing so will lower your car insurance rates.

Last but not the least; learn other means to discount your car insurance premium. Do not forget to ask your agents about it.

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Need Cheap Car Insurance For Teenagers

Published by author on May 21st, 2009 - in Need auto insurance

Reader’s Question:

Hi, I’m 18 years old. How can I get cheap auto car insurance for teens?

Katie

Indianapolis, IN

Teenagers are considered by car insurance companies as risk drivers because they are more aggressive in driving than any other group of drivers. In this case, car insurance companies offer young adult drivers with a relatively high car insurance premium. With other financial obligations that you have, it is important that you find cheap car insurance for teenagers. Whether you are already financially independent or financially dependent to your parents, finding cheap car insurance can help you save money for your future need.

Safety features in car can help you find discounts or cheap your driver’s car insurance. Cars installed with these safety features pose less risk to car insurance companies. Examples of these safety features are automatic seatbelts, daytime running lights and antilock brakes. Auto clubs like American Automobile Association can also help you save a few amounts on car insurance. Collision and comprehensive car insurance coverage should be dropped for old cars. The worth of your car may be lower than the amount that you are required to buy so paying for the collision and comprehensive coverage is not worth it. When you get married in your early twenties, your premium may change because car insurance companies believe that married people are more “stable”, and thus less risky than those who are not. This in turn will lower the car insurance premium.

You can also cheap car insurance for teenagers by remaining in the policy of your parents because your parents are viewed as low risk drivers by the car insurance company. If you still live with your parents, you are eligible to do this. Nonetheless, if you have your own car, most of the car insurance companies require a separate car insurance policy. This can help them determine the owner of the car.

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Need Cheap Auto Insurance Quote

Published by author on May 20th, 2009 - in Need auto insurance

Reader’s Question:

Are there things I can do to get cheap auto insurance quote?

Mark

Boston, MA

Cheap car insurance is possible. Aside from the fact that you can shop and compare the car insurance rates of different car insurance companies, there are also factors that can be controlled and can help you get cheap car insurance rate. What you need to have is the knowledge which is the controllable and uncontrollable factors.

a. Young adult drivers are more considered as risk drivers because they are more aggressive than any other group of drivers. Because of this, car insurance companies usually charge young adult drivers with higher car insurance premium.

b. Gender is another uncontrollable factor. Statistics shows that female are safer driver than men. Thus, the former group receives cheap car insurance rate.

Although there are uncontrollable factors, there are also controllable factors. Here is the list.

a. If you drive in rural areas, there is a greater probability that you will receive lower car insurance premium than those who drive in urban areas. There is a higher chance that collision and stolen cars happen in urban areas and thus the premium offered is higher to compensate for the risk. If it is feasible in your situation, move from urban area to rural area.

b. Good driving record creates good impression to car insurance companies that you are a responsible driver. In this case, they may offer cheap car insurance or discounts. Poor driving record means you have moving violation or even a single speeding ticket.

c. Sports cars are usually charged with higher auto insurance rate. This type of car poses high risk to car insurance companies because it can be driven in ways that can cause traffic accidents and crashes. If you have an old car, it will be better to stick with it.

d. There is a correlation between risk and occupation. If you work as a pizza delivery guy, there is a higher chance of being involved in an accident because you drive more often.

e. Poor credit history or no credit history at all can also increase your car insurance premium.

Factors like driving experience, business use of cars and the mileage that you drive and safety features can also affect your car insurance premium.

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Need Car Insurance Discounts For Seniors

Published by author on May 19th, 2009 - in Need auto insurance

Reader’s Question:

Im turning 50 this month and I am just wondering if I can get any discount from my insurance company? I have a clean driving record for several years already. I just want to lower my car insurance premium a bit.

Martina

Chicago IL

Having a good driving record for years pays off.

Car insurance providers usually offer car insurance discounts for retirees who are getting some type of pension.

Additionally, insurance providers provide discount as well to senior drivers however, the age usually starts at 55 and older.

I suggest that you ask your insurance company if they provide discount if you renew your insurance policy. If you have been with the insurance provider for many years, you can get discounts as well for being a long time customer.

If you drive less and do not use your vehicle very often then you can take advantage of the low mileage discount. Other discounts are having safety features in your car, insuring more than one vehicle etc.

Many insurance companies will provide long-time policyholders with no claims and a clean driving record with a good driver discount.

You may also enroll in defensive driving class to get safe driver discount.

Hope this helps!

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Buying Car Insurance For The First Time?

Published by author on May 19th, 2009 - in Need auto insurance

Reader’s Question:

My friend told me that if a person has never had car insurance before, he/she will be given high car insurance premium. Is that true?

Jim

Portland, ME

First time buyers of car insurance are usually charged with expensive car insurance compared to those who had had car insurance for years already. The reason behind this is because of the discounts that are usually given to long time policyholders. Auto insurance companies usually provide discounts for renewing your auto insurance policy with the same insurer.

There are various factors that affect your car insurance rate. This includes the years that you have been license and insured. For example, a young driver that is buying his/her first insurance for the first time will usually receive high car insurance rate compared to an experienced licensed driver who has been under auto insurance policy for more than a year.

Car insurance companies in most states are allowed to use different factors to know the policyholder’s premium rate. The cost of auto insurance for different motorists differ, as the level of risk for the insurance companies varies.

Keep a good driving record so you can get cheap auto insurance premium in the future. You may also be able to get lower insurance premium if you enroll in defensive driving class to get discount.

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Need Cheap Sports Car Insurance

Published by author on May 13th, 2009 - in Need auto insurance

Reader’s Question:

Im planning to buy a new car..not just any car, its a sports car! I know a lot of people are telling me that it would cost me a lot on my sports car insurance but I would like to know more about it. Why is it expensive? Can I do anything to make it cheap?

George

New York NY

When we think of cars, we think of the model and new car models are usually expensive. But before you buy this type of car, you should also note that these type or cars are charged with expensive sports car insurance premium. The reason behind this is because its parts are expensive and the cost of repairing the car is also costly. On the other hand, sports car insurance can also cost you high insurance premium. SUVs or sports utility car are usually driven in such a way that can cause traffic accidents and crashes. Because of this risk to car insurance companies, they charge these cars with high car insurance rate. There are cases however when an SUV is cost more to insure than another type of SUV. This is because car insurance companies also consider the following factors when they rate car insurance premium.

a. There are certain models that are likely to be stolen, involved in traffic accident and to be vandalized. In this regard, car insurance companies charge those cars with high car insurance rates.

b. New model of cars or expensive type of cars usually also have expensive parts and are costly to repair. Thus, the risk involved is passed on to the car insurance rate charged to customers.

Highway Loss Data provides information on the amount of money that car insurance companies paid out on the average because of collision, injury, theft claims for different types of motor vehicles. Therefore, there will be cases when an SUV is more expensive to insure than an expensive car because the former is more attractive to thieves and be stolen. Aside from the statistics provided by Highway Loss Data, car insurance companies also consider their own claims experience. For example, if a certain model of SUV has more claims than the other model, the model with more claims will likely receive higher sports car insurance rate.

You may be able to get price reduction on the cost of car insurance if you install safety features in your car and by taking defensive driver class to get a discount.

So if you are thinking of buying sports car or high performance car, think. But if you can afford it, well, enjoy the ride!

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I Need a Cheap Car Insurance Rate

Published by author on May 13th, 2009 - in Need auto insurance

Reader’s Question:

Im tired of paying high car insurance rate? Is there even such a thing as cheap car insurance? If so how can I get this? Thank you in advance.

Ron

Miami FL

Car insurance companies want to avoid the risk of paying more so they charge relatively high car insurance premium. As a buyer, you want to avoid paying more from the high insurance premium so you look for cheap car insurance premium by shopping for car insurance rate. Other than shopping, there are other things that you can do to make cheap car insurance rate possible. There are controllable and uncontrollable factors.

a. Because teens are aggressive drivers, they are likely to get involved in a car accident. This group is then charged with high car insurence rate.

b. Another uncontrollable factor is gender. Based on statistics, female are safer drivers than male. Thus, the former receives cheap car insurance rate.

You can make rate cheap by controlling the following factors.

a. Collision and stolen cars are more prevalent in urban areas than in rural areas. In this case, auto insurance rate is higher in urban areas than in rural areas.

b. If you have a good driving record, you are likely to receive lower rate or discount because insurers will think that you are a responsible driver. Moving violation and even a single speeding ticket can make you look like a reckless driver.

c. Sports cars or new model of cars pose high risk to car insurance company. If you want to purchase cheap car insurance rate, stick with your old car, if you have one. If you plan to buy a car, purchase a car that is cheap but has all the features that you need.

d. The kind of occupation you have correlated by car insurance companies to risk. If your work is delivering pizza, for example, you are also likely to get into traffic accidents or crashes because you are always on the road. In this regard, car insurance companies will charge you with high car insurance rate.

e. Keep a good credit rating because car insurance companies also use this to evaluate the risk you pose. If you don’t have any credit history, get one. Otherwise, car insurance company will automatically assess you as a high risk driver.

Other factors that you need to consider are driving experience, business use of car, safety feature devices and the mileage that you drive.

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Need Car Insurance For New Driver

Published by author on May 13th, 2009 - in Need auto insurance

Reader’s Question:

I just got my license and this is my first time to get auto insurance. Im on my own so I will not be added to my parent’s insurance. What do I need to know. Please help!

Helen

Boston MA

If you are a new driver, you need to know the basic things about the auto insurance policy. There are factors that affect car insurance premium. Since you are a new driver, car insurance companies will usually offer higher auto insurance premium than the standard auto insurance rate. If you think you need cheap new driver car insurance premium, rates should not the only thing that you need to consider. Here are some of the things that you need to know.

a. Consider the amount of new driver car insurance rates that you want to buy. These may depend on different factors. You can consult your car insurance agent to evaluate your needs. The least amount that you need is your state’s minimum required liability. There are additional coverages such as comprehensive and collision coverage that will protect your car in case of collision or if it has been stolen or vandalized.

b. Once you know the coverage that you need, you can now shop for new driver car insurance rates from different car insurance companies. This is the basic step to finding cheap car insurance. When you shop, don’t forget to consider the coverage. Cheap new driver car insurance rates seem attractive but this may also mean fewer benefits and features. Furthermore, also consider the financial strength of the company and those with excellent customer service. These are the things that matters in the long-run.

c. Because a policy is a legal contract, make sure that you understand what is indicated. If there are things that you don’t understand, clarify with your agent.

Here’s the information that you will find in the policy.

  • Name of the person covered in the policy
  • The limitations and exclusions that will apply
  • The coverage period
  • The amount included in the coverage
  • The amount of premium on the coverage
  • Process when you file a claim or report a loss

d. When you have your new driver car insurance policy, monitor and update it periodically.

e. Do not forget to shop around for cheap car insurance. You can find comparison websites just like you see above wherein you can compare various companies with just putting your information once as opposed to getting quotes for each insurance companies which will take a lot of time.

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