Cheap Car Insurance For Younger Drivers

If you have a teenage driver, you probably would have realized how expensive it is to insure them. Drivers under the age of 25 generally pose high risk of being at-fault in accidents. This may be because the age group is considered as aggressive and inexperienced drivers. To minimize their exposure to risk, automobile insurance companies charge relatively high insurance rates to this age group between 15 and 24 years old. So see some of the tips below to aid you to lower young drivers car insurance.

You can add your teen to your existing automobile insurance policy once they receive their permit or driver’s license. You can reap from multiple-car discounts if you insure more than one automobile from the same car insurance carrier . So adding your teen’s automobile may give you additional discount on your policy. It is not a guarantee however that you can acquire cheaper auto insurance from this especially if you drive an expensive automobile . You can opt to get a inexpensive car and insure it under the name of your teen. However, keep in mind that it is more affordable to add your teen to your policy than having them get a separate insurance policy.

I know how teens like to get classy, sports car. If you don’t want your insurance to get very pricey, get them a cheap car. One factor that affect auto insurance premium is the cost of repairing a vehicle. Do not listen to them, get them a cheaper vehicle!

In return for giving them a vehicle, tell them to do well in school. Insurance carrier are giving discounts for students who has a GPA of B or higher. This will help reduce teen car insurance premium rate.

Another option that you have is to consult with the vehicle insurance provider. The type of automobile can affect the insurance premium so tell the car insurance company the make and model of the automobile that you are planning to get for your teen in order for you to receive accurate rate quotes. Accurate rate quotes are vital to helping you make the right decision. Based on the quotes, you may want to add your teen to your policy or choose which mode of automobile to purchase.

Don’t settle for the rates quoted by one car insurance carrier only. Each car insurance companies offer different car insurance rate. You will find that insuring a household driver is less expensive with one car insurance carrier than the other.

Before you let your teen hit the road, make sure that they are equipped with the right driving skills by enrolling them to driving program . This can make them qualified for getting defensive driving discount from car insurance provider.

Require them to do their part in paying for car insurance monthly premium. This way, they will be able to learn how pricey auto insurance is. This will hopefully teach them to become more responsible and careful on the road.

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Auto Insurance Lingo - What is a Hazard?

There has got to be another way to reduce car expenses. The ideas of reducing your driving, car pooling, new spark plugs, using mass transit, and checking air in the tires, a new air filter, have all been done. Now what? Help! The price of fuel for a car is not something that you can change. The only choices are type of fuel and where the fuel is purchased. Insurance is an operating expense that is the next biggest item after fuel. Your insurance agent will not try to lower your premium because he/she is paid by commission on the premium paid. Here are (7) things to check on when you are doing a review on your auto policies.

1) Do you have all your cars, truck, rv, boat, and homeowners insurance with the same company? This could reduce premium up to 25 percent when combined.

2) If your car insurance collision deductible is $250.00 consider increasing to $500.00 and comprehensive from $100.00 to $250.00. Remove collision and just carry liability on a car that is ten years old or with a low resale value. This could reduce the premium from 15 percent to 25 percent.

3) Have you reviewed with your agent how many miles you drive a year and whether it is business or pleasure? In most cases if you can get under 10,000 miles a year and for pleasure (personal use)only you may be able to get a reduction of 5-10 percent.

4) Do all you can to eliminate damage to your car such as "fender- benders." Take a defensive driving course, put car in garage, and allow more time to go to your destination. Do not submit small claims. Changing the deductible needs to be accompanied by very low claims history to receive significant discounts. Claims equal premium increases. To be able to change auto insurance carriers, all persons that are insured need to be free of any moving violations such a speeding, seat belt, improper turns to name a few..for three years.

5) Keep you insurance agent informed of any marriages, retirements at age 65, B average+ good students, a high credit rating, the earning of a college degree, and a car with a burglar alarm system. These are all possible discount.

6) If you qualify, by not having any moving violations, or claims contact two other insurance carriers for a quote if you want to be sure that your present carrier is competitive. The benefit of reviewing your coverage is to keep your information current and premiums affordable.

7) The amount of premium you pay is dependent on claims history, rate of inflation, and the interest return the insurance company is earning on their cash reserves. Premium will increase but your control of claims history is the most important. Another benefit to you is now we have freed some money that should be added to savings. The savings from the deductibles being reduced will take about three years to cover the out of pocket cost of the increased deductible. Then, this amount is found money to add to savings.


More to come in the next Make Money Work newsletter.

To your financial success,

Martin Braddock

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