Cheap Car Insurance

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 by admin
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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

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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 by admin
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“I want cheap car insurance but how much coverage do I need to get?”

Most states require a minimum amount of liability coverage. But the legal requirement may not be enough. Collision and injury losses can cost more than the minimum coverage mandated. If you are held responsible for a collision and injury you may have to pay the difference if the costs are more than what the insurance covers. That could ruin you financially.

A common recommendation is that you have bodily injury liability protection of $100,000 per person and $300,000 per accident. This amount should cover most eventualities but keep in mind this is the maximum amount the insurance company will pay out.

If for some reason the losses are higher than that you may be expected to pay the extra, if you have it. Therefore, if your net worth is more than $300,000 you should consider extra liability insurance. You could increase the car insurance policy amount, but check for a less expensive way by getting a separate ‘umbrella’ liability policy. An umbrella liability insurance policy covers other circumstances in addition to car incidents and is cheap: typically $200 - $300 per year for $1,000,000 coverage. It kicks in when your underlying insurance is maxed out. If you buy umbrella liability insurance from the same company as your car and homeowners insurance there may be an additional discount but be sure to shop around for the best buy.

In addition to bodily injury insurance, you may need to buy property damage coverage, meaning damage to your vehicle, other vehicles, and maybe other objects.

Collision property damage coverage pays for the damage to our car. The amount of coverage is determined by the vehicle you drive and the profile of the vehicle’s typical driver. A new Corvette is more expensive to insure than an old Buick Roadmaster because of the cost of parts, the likely way they are driven, and the residual value. The amount of coverage is determined by the insurance company accordingly. If you have a low value car, or one that is seldom used, you could decide to not have collision insurance.

Comprehensive property damage coverage adds protection from damage to your vehicle not occurring in a collision, and some additional features. The amount of coverage is again determined by the insurance company according to the vehicle model.

One choice you do have control of is the deductible. This is the amount you pay before insurance pays. Deductibles are typically $500 - $1500. The higher your deductible the cheaper your car insurance.

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Car insurance is sold in different packages and combinations. Choose the coverage you need from the available packages that best match your requirements to protect yourself and family.

There are typically two situations in which you want protection:

• You are held liable for injury and damage to property of others.
• You receive injury and damage to your own body and property.

Liability Coverage:

A. Bodily Injury:

Covers other people’s injuries or death for which you are held responsible.
Legal defense against lawsuits.
Other people’s medical bills, loss of income, pain and suffering.
Does not include damage to your vehicle or your family’s injuries.
Is usually mandatory in most states.
Coverage amount refers to per person per incident.

B. Property Damage:

Covers the cost of damage to other people’s property.
Usually it is for the other person’s vehicle, but it can apply to anything you run in to.
Coverage amount refers to maximum per collision.

C. Medical Payments:

Covers expenses for the insured’s medical and funeral services due to bodily injury caused by a collision.
Insured includes yourself, family member, passenger, in your vehicle, and yourself and family member as a pedestrian.
Coverage amount refers to maximum for each person.

D. Uninsured and Underinsured Motorist

UM Property Damage

Applies in an accident caused by a driver without enough liability insurance coverage.

UM Bodily Injury

Covers yourself, family, and passengers for injuries, or death, caused by the negligence of a person with insufficient insurance.

Physical Damage:

E. Collision:

Covers repairs of damage to your vehicle if you hit or are hit by another vehicle.
Choose the highest deductible you can afford to pay out of pocket.
Coverage is normally up to the value of the vehicle, or it is ‘written off’.
Consider not having this for low value cars.
Required for leased or financed vehicles.

F. Comprehensive:

Covers damage, not related to collision, to your own vehicle or other vehicle you may be using. e.g. theft, fire, flood, vandalism, accidents other than collision.
Select as high a deductible as you can afford to pay out of pocket.
Required for leased or financed vehicles.
Unnecessary for low value vehicles.

Other Coverage

G. Transportation Expense

Roadside Service - Covers towing if your vehicle is immobilized.

Rental - Contributes to cost of a rental car while yours is undrivable or being repaired.

H. Personal Injury Protection

Available in certain states to cover policyholder, household members, passengers, other authorized drivers for medical, hospital, and funeral expenses.
Covers injuries to yourself and household members when in another person’s vehicle.
Helpful if you have low or no health insurance, or if you are a passenger in a carpool.

This is a summary of the types of car insurance coverage that are typically referred to in a policy quote. Be sure to read a complete policy document for the details of what is included before signing an agreement.

Keep in mind:

• what coverage you must have legally,
• what you need in order to protect yourself from out-of-pocket expense,
• and what features you can do without, in order to find cheap car insurance.

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