One of the biggest inconveniences for both parents of teens and teens who are just starting to drive are insurance rates. It’s no secret that rates are higher for new teen drivers because there are more risks. If you are a teen driver, or the parent of a teen driver and want to pay the lowest premium possible on auto insurance there are a few things you can do.
The first thing to consider is the type of car you pick. You don’t want to get a flashy car that goes fast. If you do this, you’ll be paying a high price for auto insurance. Your best bet is to get something like a Chrysler PT Cruiser or a minivan. The GMC Safari is known to be pretty cheap to insure. These vehicles may not be the sleekest, best looking rides out there, but you can take satisfaction in knowing that you’re paying less on insurance. The money you save on insurance could be used to go toward a nicer car down the road, or help to pay for college. Teens who consistently have good grades and take driver education classes will also have lower insurance rates than teens who did not do these things.
If you’re lucky enough to live in North Dakota, South Dakota, or Iowa you’ll likely be paying less than anyone else for auto insurance anyway. These states have the cheapest auto premium rates in the country. The Northeast has the most expensive rates, due mainly to the fact there is more traffic and congestion in this area than anywhere else in the country.
Having an accident can be a very challenging time, whether you were the at fault party or the not at fault party. There are however a few simple steps that you can follow to get your claim moving as fast as possible.
One important thing is to make sure you are eligible according to your policy and what deductibles will have to be met. You may find this information in your insurance policy. Review it carefully, for eligibility requirements and deductibles and make sure you are prepared to pay your deductible. Many times if you call with questions about filing an insurance claim they can record it on your insurance record making your premiums sky rocket.
Another important thing is to fill out all adequate paperwork relating to your accident. This means the accident report that is usually given to you by law enforcement. Also getting the required estimates which is usually two. Then you need to call your insurance company to get the required paperwork from them. Along with your paperwork make sure to include all witnesses to the accident.
Getting the Claim Filed:
Sppedy filing of a claim is important. The more you care, The faster they are to get your claim filed, and taken care of. Whether you are the at fault party of the accident or not, it is the insurance companies job to plead in favor of you on your case. It is their job to push for a good deal.
Once everything is settled, you may get paid from your insurance company or they may pay the repair shop directly, different insurance companies work in different ways. Either way go to the approved repair shop and get the repairs completed. Some insurance companies will send out and adjuster and pick your repair shop for you.
Different insurance companies work in different ways. Policies and the companies rules vary from company to company. If insurance companies are in dispute you may get calls from the other parties insurance companies to deal with. If the insurance companies are in dispute the process could become very lenghty.
Everything should be documented, everyone you talk to, dates times etc.
All insurance companies are rated in various categories of service and by different rating entities. The most common ratings can be found online in forums. Here people will rate their companies by how much they charge and the quality of the service. A non-responsive insurance company is frustrating to be part of and is not worth the savings they might offer.
In addition, auto insurance companies are rated as to their financial strength. Insurance companies invest excess funds in securities or company debt. The financial instruments invested in should be safe and AAA rated. If the insurance company invests in risky ventures, the company itself will not receive a good rating. Fitch and Standard & Poor’s are a couple of companies which give insurance companies their ratings.
An insurance company invests excess funds, in order to earn an extra profit and to have more funds available to meet all claims filed. A company that makes risky investments (AIG is one example) may not be around to meet your claims without government intervention. Other insurance companies failed because of poor risk management policies.
If stuck on the road, a company that can respond quickly is a desirable company. The same goes for auto repairs. Being without an auto can be frustrating and could cost policyholders employment, if that is the only means to get to work. If a company fights a person on the claim amount, this is a negative. Another problem is a company that raises rates excessively, even though there has never been a claim filed.
There is ample competition in the insurance business at present and none of the aforementioned problems should be caused by an insurance company. Check thoroughly online and through friends and acquaintances as to how they rate their companies. Both ratings agencies and “word of mouth” can be reliable tools in leading to a reliable and comfortable company to handle insurance needs. There is no requirement to stick with a company that is not fulfilling basic insurance needs. Go online and get quotes from other companies and switch if satisfaction is not forthcoming from your present company.
Which cars make your insurance rates affordable?
Well the way that the rates are set are by the HLDI (Highway Loss Data Institute). The HLDI analyzes the insurance cost from a few different factors like how many cases of theft that, that kind of car has had in the past. Another is how many crashes that model has been in, and lastly how many injury claims that have been made within the history of that car.
They also look at the cars color, how many doors, what type of mileage it has, the engine, and the transmission. So take i to thought that a four door car has a 93% chance of being stolen. But a two door has a five times more chance to be stolen. For example if you buy a Buick its probally not going to get stolen but in comparison to a corvette the corvette will be theone being stolen first. A couple other factors that come into play are the repair costs, what if it gets into a crash or totaled how much would it costs that is a main factor in insurance companies today. Also the saftey features that a car has like AAA, alarm systems, power windows, power lock, radios, remote engine starter, sun/moon roof, ect.. these also make a big impact on the cost. A big cost reducer to the insurance companies is a ESC (Electronic stablizing control) the ESC has proven to reduce the instances of crashes by a radar that heps to see incoming traffic hazzards.
The best way to see the car you want is, is by going to the IIHS’s (Insurance Institute for Highway Safety) site and performing a search on that vehicle. So typically when searching for the right car to fit your budget to can go to the IIHS site and perform a serch on the class, make, model, ect.. and by doing this you will be able to know the exact cost of the car that your want to purchase and by knowing that you’ll have reassued your self on what the insurance rates are and what you can afford.
There are several factors that an insurance company considers when they provide you with a quote for insurance. Knowing these factors ahead of time can save you time and money.
Many of the major car insurance companies will check your credit score prior to giving you a quote for insurance. They have come to the conclusion that a lower score means a higher risk for accidents. At least two months before you apply for new car insurance you should review your credit report and try to boost your score.
If you have had any tickets or accidents in the past 5 years your rates will increase. One easy way to solve this problem is to take a drivers safety course and present the certificate of completion to your agent when looking for a policy. Completion of the course will help you avoid paying a higher premium.
If you have teens in the home your rates will increase. This is a fact that you can’t avoid and does not matter if the teen is licensed or not. When your teen leaves home, make sure that you inform your insurance agent so that you no longer pay a higher premium.
Check with the insurer that you have other policies with before committing to a new policy. Insurance companies are now offering discounts for multiple coverage policies such as a homeowners/car insurance policy.
If you drive a sports car or other type of luxury car be prepared to pay a higher premium. Also, if your car is considered a high theft risk car, you will pay additional premiums. The city in which you live will affect your policy. When a city has a high theft problem, car insurance companies will raise rates in that specific area. Installing anti-theft devices and parking your car in a garage may help your premiums decrease.
Your age and sex will have a direct role in your insurance premiums. Men between the ages of 18 and 30 will pay a much higher premium than men 31 and older. Women fall under the same guidelines but generally pay less than men in comparison.
There are many other factors that go into your premium cost. Deductible limits, policy amounts and whether or not you finance the cost can all determine your final price.
When people are planning a trip, rental car insurance is often something that comes to mind. A person renting a car will always be asked if they would like to purchase rental insurance. This decision is a personal one, but comes with more responsibility than one may think. Although it is the renter’s decision to turn down the insurance, if an accident occurs it can become quite costly. When trying to decide on whether or not to buy rental car insurance, it is always best to weigh the pro and cons.
Before agreeing to purchase rental car insurance, check with your current insurance provider to make sure your insurance company doesn’t already provide this form of insurance for you. You will want to know whether you are covered in state, out of state, or both.
If you are traveling for business, there may be a chance that you will be covered by your employer. Many employers provide corporate coverage that includes rental car insurance. If coverage is not offered, make sure that there is not a reimbursement program within your place of employment. This would allow you to be reimbursed when purchasing rental car insurance.
Renting a car is very commonplace among people who are traveling for business and pleasure. Many travelers are often relieved to return their vehicle unharmed. Many times people feel like the extra money spent is a waste of money. Although this may be true, if an accident does occur it can cost a lot of money even in very minor cases.
If you get caught in a situation without rental car insurance, you need to be ready for what your liability will be. Rental companies will charge for repairs, damage to the vehicle rented, materials and labor charges, etc. This can rack up very fast. Depending on the rental car company, you may be charges for the diminished value of the vehicle after it has been in an accident and repaired. Sometimes it is better to pay for peace of mind, even when you think that your money was not well spent. It is always better to be on the safe side.