Cheap Car Insurance

As an example of how the type of car you drive affects insurance rates let’s look at the Hyundai Tiburon.

The Tiburon is a sporty car that has good performance and is not very expensive. It was popular with young drivers since 1997 when Hyundai began production.

But there was a hidden flaw.

The Tiburon topped the charts for the worst rate of theft for 4 years in a row through 2003 (IBC data). And Hyundai did not even build any in 2002.

Because there was no anti-theft device thieves soon learned it was easy to steal. The low likelihood and high cost of recovering stolen cars made Tiburon insurance more expensive.

In 2003, Hyundai added a theft deterrent: an electronically coded vehicle immobilizer. As thieves discovered it was now hard to steal they moved on to easier targets. Insurance rates dropped dramatically.

If you are considering buying a used Tiburon you would benefit from picking models no older than 2003. Then the vehicle will be at lower risk of loss and you can get lower auto insurance rates.

This is good news if you are a teen driver. You can still consider this popular, sporty car but know that it won’t be the most expensive to insure. Since Tiburons from 2003 on have an approved anti-theft device you can get a discount and cheaper car insurance.

Tags: Cars, Young Driver // 2 Comments »

1. Buy a low risk car
   Car insurance rates are based on the value of the car, the cost to repair, crash test results, prevalence of theft, and frequency of claims. Many factors affect these criteria, but what you drive can have a big impact on your car insurance rates. You can compare ratings of vehicles at Highway Loss Data Institute. Pick a car that has moderate power, is less popular with young drivers, has a good safety record, and is inexpensive to repair, in order to get cheap car insurance.
2. Clean up your credit score
   Insurance companies not only use car type to determine rates, they also use your credit history to determine if you are a reliable bill payer. Maintain a responsible credit history by paying bills on time, and keeping your credit balance low, in order to have cheap car insurance.
3. Drive carefully
   How you drive has a huge affect on your insurability. Your past driving history is included in the way your risk is rated. Keep your driving record spotless with no infractions, violations, tickets, claims, and you can get affordable auto insurance.
4. Increase your deductible
   If you have adequate savings to afford paying the first $500- $1000 of an insurance claim, choose a similar deductible for your car insurance coverage. Increasing your deductible from $200 to $500 can save you up to 30%. Increasing your deductible to $1000 can save you 40% on collision and comprehensive coverage.
5. Reduce coverage on low value cars
   If you have a car that is of low value, for example, that is less than ten times the premium, collision repair insurance may not be worth it. there’s a good chance the vehicle is written off and you will get only it’s market value. Be sure to retain injury and liability coverage, but drop collision coverage to get affordable car insurance.
6. Combine auto and homeowners from same company
   Insurance companies may give you a special rate if you have other insurance with them, such as homeowners, or multiple vehicles, as well as a long-term customer history. However, don’t automatically assume this is true. Shop around and compare insurance quotes.
7. Ask for discounts
   There are many possible discounts offered by insurance companies but you have to ask for them. Here is a list of possible car insurance discounts that you can request. Keep in mind, however, that some companies’ rates can be lower even with fewer discounts. Ask for all discounts possible but compare the overall value when choosing cheap car insurance.

And of course you should shop around at as many agencies, brokers, and online, to compare the insurance coverage and rates that fit your needs for cheapest and best buy in car insurance quotes.

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As a parent you want your teenager to be safe and sensible when driving. As a teenager you revel in the new freedom and independence that driving yourself provides. A parent tries to instill responsibility and rules. A teen wants no rules but has not learned consequences. When driving, the consequences of accidents can be devastating and expensive. Having car insurance is sensible and necessary but finding adequate coverage and cheap car insurance for your young driver can be challenging.

Naturally, any age driver who is new on the road has less experience and judgment to guide them. Many accidents occur in the first few years of learning to drive. When you add youthful exuberance then the risks and chances are even higher. It is much harder to find a combination of good insurance coverage and low rates when you are getting car insurance quotes for new drivers.

It is possible and convenient to add your teenage driver to your existing car coverage policy. However you may be smarter by getting a separate policy in the name of the teen. If you establish that the insurance cost and payment is reliant on good driving they will not only learn that freedom comes with responsibility and consequences but also they will establish a good driving record that can be a benefit in the long run. This will allow you to provide independence and also encourage good behavior.

One of the first things to consider when a teenager begins driving is the type of vehicle driven. A sporty, high performance model may be more desirable for its status and thrill but is more likely to be driven recklessly, more likely to be expensive to operate and maintain, and certainly more expensive to insure. Even if the value of certain cars are about the same, insurance rates can vary significantly according to the vehicle model.

One way to compare insurance rates is to search online. Some web sites offer instant quotes, and even show companies’ rates side by side. This will guide you in finding some companies that offer cheap car insurance prices but you may not find the type of coverage detail you need in order to make an informed comparison. Be sure to review all the coverage types that you need and what they are actually including, or, more importantly, what they are excluding.

If you are getting quotes from brokers be sure to ask for the same types of coverage and the same coverage amounts in order to make valid comparisons. Also look for any discounts that could apply, especially a drivers’ ed class, for example.

When you have your young driver out on the roads you want to feel secure in the knowledge that they have a safe car, that they understand the risks of driving, and that they know and take responsibility for their actions. If you establish the connection amongst these factors you can be confident in their own safety and that you are getting the best car insurance rates.

Related:

• Tiburon Insurance Rates and Teens

Tags: Young Driver // 1 Comment »

An easily overlooked way to lower you car insurance cost is to forget to ask for available discounts.

Discounts vary amongst car insurance companies, and from state to state. Here are examples of discounts that may be available in the state you live and with companies that offer car insurance. There is no harm in asking, and car insurance discounts can make a big difference in your savings.

• Anti-theft Device
• Anti-lock Brake System - ABS
• Passive Restraint - airbags
• Side Airbags
• Stability Control System
• Careful Driver
• ‘Top tier’ rating
• Homeowner
• Multiple Car Owner
• Claim free record (over 3 years)
• Loyalty program
• Defensive driving course certification
• New car
• Economy car
• Senior citizen
• Married
• High-graded student
• OnStar service
• LoJack installed
• Window glass VIN engraving
• Low mileage driver
• Car pooling
• Car club membership
• Employer program
• Business association
• Professional affiliation
• Online application
• Full payment option
• Protected parking
• Secured garaging

As you can see, there are many possibilities that could lower your insurance risk and rates so that you can get a discount. Discounts can vary from 5% to 25%, providing significant savings. Don’t forget to ask when shopping around for cheaper car insurance. Since insurance companies change their policies periodically, you should review on a yearly basis what your coverage is and if you become eligible for discounts, or whenever your circumstances change.

Related:

• Tiburon Insurance Rates and Teens

Tags: Discounts // 1 Comment »

Are small cars the cheapest to insure?

Not likely! Small cars can cost more to insure because of who drives them!

There are several factors that insurance companies take into account to determine insurance rates on car models.

• safety equipment (side airbags, alarm, ABS, Stability Control)
• crash test results
• cost to repair
• frequency of claims
• frequency of theft
• typical driver

If you’re looking for cheap car insurance check out the lists below for who is likely to be the car’s driver.

According to the HLDI (Highway Loss Data Institute), for 2004 - 2006 model years the lowest loss cars, and therefore the cheapest to insure, are:

And the highest loss cars are:

As you can see, most of the highest loss cars are small car models.

The lowest loss cars are family-oriented models with moderate performance.

If you drive a car that is popular with young drivers, thieves, or is high-powered, then you will not have cheap car insurance!

Related:

• Tiburon insurance rates and teens

Tags: Cars // 4 Comments »