Teenage Drivers Auto Insurance

teen driver in good mood with black car, selective focus on eyes

IIHS further suggests that immaturity leads to various risky habits for examples ignorance towards speed limit and the inability to recognize or respond to hazards. It is therefore not uncommon for auto insurers to charge high premium rate for young drivers. To help lower insurance cost, IIHS recommends parents to only let their teenagers drive safe-vehicles with at least these 4 basic principles:

· Low horse power: vehicles with high-power engines are serious temptations for teenagers to test the limits of their cars.

· Bigger vehicles are safer: small cars are bad, because they offer little protection for drivers in the event of crash. Small SUVs are still in the institute’s recommendation list.

· Electronic Stability Control (ESC): this safety feature helps apply automatic brakes in times when the vehicle suffers from loss of traction.

· Best safety score: the National Highway Traffic Safety Administration (NHTSA) tests every new vehicle and gives score for safety. Teenagers should drive vehicles with at least 4-stars score (5-stars score is best).

Those principles apply anytime parents buy or choose vehicles for their teens. Although the principles seem restrictive, there are still several dozens of vehicles that meet the guidelines. The good thing is that most low horse power vehicles tend to be the less expensive options in the market. The right vehicle reduces the risk of accidents and improves the chance to get affordable auto insurance quote. However, parents and teenagers must work together to keep the record clean. Here are some suggestions to prevent premium surcharge.

1. Help teenagers understand the traffic laws: by far, the most effective way to keep auto insurance premium affordable is to maintain zero traffic violation record. Teenagers may not aware of what some signs and regulations mean, so parents must be able to help their teens understand.

2. Lead by examples: in ideal circumstances, parents teach their children how to drive. Parents play crucial roles in teenagers’ behaviors behind the wheel. If they fail to set good examples, their teenage children will think that it is fine to break traffic laws and show inappropriate attitude on the road every now and then. Action speaks louder than words.

3. Multiple drivers in one policy: before teenagers are ready to drive their own cars, it is best to list them under their parent’s insurance policy. Some companies offer discounts for multiple drivers. This is cheaper and safer option. An independent policy for teenager is also possible, but the total premium rate can be much higher.

4. Good grades: most insurance companies offer discounts for teenage drivers (who are still in college or school) if they get good grades. Academic achievement is good in all cases, but the discount encourages teenagers to study harder.

5. No sport cars: teenagers love sport cars and crave for the high-speed excitement. Apart from the fact that sport cars are expensive to insure, these performance vehicles are quite dangerous for amateur drivers as well. Even if parents can afford to purchase a sporty car for their teenage son or daughter, they need to be safety conscious. Remember that safety always comes first.

6. Driver education courses: completion of driver education courses at reputable institution opens the door for discount. Not all courses/institutions give instant eligibility, so please consult an insurance agent to find out the available options.

7. Drive with them: teenage drivers develop either good or bad behaviors on the road over time. Sometimes it is a good idea to drive with teenagers and see if they are still as obedient-to-traffic-law as when they first started.

8. No drugs and alcohol: as hard as it may seem, parents need to talk with their teenagers on the subject of alcohol and drugs. Have a personal conversation and discuss the matters without the intention to accuse or suspect if they consume such substances. Respect their opinions and explain the safety and health risks from the consumption of drugs and alcohol.

An independent auto insurance policy for teenage driver may hard to come by. If it is indeed necessary to get one, Non-standard auto insurance market welcomes any high-risk driver regardless of the previous traffic violations, involvement in accidents in the past, or credit score.

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Cheaper Student Auto Insurance

The reality is young people pay the most of any demographic for automobile coverage. The good news is cheaper student auto insurance can be attained by making some smart moves. Below are some simple steps students can take to lower their premiums.

1. Stay on your Parents Policy

Unless you are making serious money and can afford super high premiums, talk to your parents about adding your car onto their policy. This will save you about 20% or more. Bundling multiple automobiles is a simple way to save and this includes students living on a tight budget.

2. Get Several Discounts

As a young driver, you might be thinking there are no discounts available for you. This is simply not true. If you have a solid GPA of a B or higher, you automatically qualify for a price break. Getting top grades will not only help you get a good job later on, but will lower your premiums about 5% or more. So why do insurers give lower rates to students with good grades? The secret is in the data. Auto insurance companies have compiled a huge amount of statistical data about accidents. There is a direct link between people who are disciplined and responsible academically and lower vehicle crashes. Car insurance premiums are based on the perceived risk associated with a driver, based on a person’s profile. After you finish school, you can continue to get these discounted pricing for up to a year, which is another incentive to get good grades.

To get this discount, students need to meet several qualifications. These include:

* Most auto insurers offer these special prices to students that have and maintain a G-P-A of a B or higher during the school year. The old adage of hard work pays is absolutely true.

* You need to be an active full-time student at a high school or college.

* Most car insurance companies put a cap on this discount at 25.

If you are reading this as a parent, talk to your kid about using this as a motivation for getting great grades. Reward them with something special, like a night out at a special restaurant, if they come home with a good report card.

3. Take a Certified Safe Driver Class

A great way for students to both learn about safe driving and lower their rates is by taking a driver safety class. Usually, the classes are held by retired highway patrol police officers who will share their amazing tips on how to stay safe on the road. You will learn how to drive carefully in rainy weather, snow and what to do to avoid accidents to name a few lessons. After you complete a certified class, call your provider and ask for this discount. Many companies will give an automatic 10% price reduction.

4. Buy a Vehicle that is Cheaper to Insure

The vehicle that you buy is one of the biggest things that will determine your car insurance costs. If you are a young student on a fixed income or have no job, it only makes sense to get a car that is cheap to insure. Yes, this means a boring car like a Toyota Corolla or used Subaru. Vehicles that are 5 or more years old can be bought at 50% off retail. If you buy the car outright and don’t finance it, you will have more control over the coverage you buy. If you don’t drive too much and are careful on the road, it might be smart to get a cheap liability only policy. This can be had for about $100, even for young students under 25 years of age.

5. Consider a Resident Student Discount

Most people have never heard of a resident student insurance discount. In a nutshell, those students who leave for college in a different state or city can get a big discount on rates. The big thing to consider however is students cannot drive while school is in session. They will be restricted to special events, such as the Christmas holiday or summer vacation. Students who want to take advantage of this program need to first contact their insurer to make sure it’s available and then provide the proper documentation, which is a certified copy of admission to the school or university they are enrolled in.

Get your custom rate check-up online at Allied insurance and lower your costs At allied auto insurance, we love students who are great drivers and have competitive rates. Using this discount, which Allied insurance company offers, can save you hundreds per year.

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Auto Insurance Pricing Factors

The truth is, getting coverage that is that cheap is all but impossible, and there are many factors that go into automobile insurance pricing. Let’s take a closer look at a few of the big factors, so you can be more informed and hopefully pay less for your coverage.

1. Lapses in Coverage

Having auto insurance is the law in nearly all states in the U.S. but many people cancel their coverage and don’t think twice about it. This is not a good move because insurers look at this as an added risk. People who do not maintain continual vehicle insurance are also more likely to cancel a policy or not pay their premiums. This is why this often overlooked factor plays a big role in rates. If you are switching to a new insurer, just make sure there are no lapses, and you should be able to get a cheaper policy in the future.

2. Your DMV Driving Record

Almost everyone thinks they are a good driver, even people that get into numerous at-fault accidents. It always seems to be someone else’s fault, but many people are just lousy drivers. Car insurers take accidents and traffic violations seriously. If you have received a lot of tickets, especially more severe ones like reckless violations, then you will be paying a lot more to get covered. Those drivers with no crashes and no tickets for a three-year or longer period are considered safe drivers. This should be an important objective to all money saving motorists because having a good driving record will save you 15% or more on automobile insurance. If you have more than 3 tickets on your record, get them cleared up as soon as possible. Go to court and talk to the judge and work out a payment plan or go to traffic school. Once you get your driving record clean, maintain it by obeying all traffic laws and drive safely.

3. Your Age and Driving Experience

This is a super big factor that plays a large role in what you will pay to get covered. Motorists that are between 18-25 pay the highest cost to get covered of any age group. Yes, that means that elderly adults over 80 can get insured for less than a 19 year old teenager. The reason for this is all stat based. Young drivers take more risks driving and engage in super dangerous behavior like texting while driving. As a consequence, this group of drivers get into more accidents than any other and often pay twice as much for coverage. The sweet spot for low rates is between 35 and 60. These motorists, if they maintain a good DMV record, can get exceptional cheap rates. For those young people 24 and under, take a certified defensive driving class and get good grades in school. These two things can save you a combined 15% or more.

4. The Vehicle you Drive

Most people do lots of research on the car they want without ever even thinking about the expense of auto insurance. The type of automobile, year and current value plays a very big role in determining rates. Some cars that you might think would be expensive to insure are cheap and others that you would expect to be really costly are not. For example, a late model Jeep Cherokee is less expensive to insure than many sedans like a Honda Accord. This is because Honda’s are frequently targeted by thieves. Auto insurers pass these costs onto consumers who own these often stolen vehicles. If you are on a tight budget, get a car that is 4 or 5 years old and non-sporty, like a Toyota Camry. Avoid new or used sports cars like a Porsche or Corvette. Also, stay away from vehicles that are always on top of the 10 most stolen automobiles. Do your research on the car you want simultaneously with the cost of insuring it and you will know if you can afford it.

Shop Online for Lower Rates

Now that you have gained an insight into the main factors that insurers use to calculate premiums, it’s time to compare quotes. The best place to comparison shop car insurance prices is on the web. Apply for your free custom quote today and save more of your money on auto insurance.

At sites like good to go insurance you can do side by side rate comparison from up to 10 carriers. Check your rates online at good to go insurance and save more today.

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Driving Without Insurance

In New Hampshire, there is no mandatory insurance law but the state’s Division of Motor Vehicles urges all drivers to purchase at least standard liability and property damage coverage. Regardless of the procedures, auto insurance regulation in every state demands that all drivers utilize their vehicles in the most responsible manners possible.

The minimum coverage requirement in most states is Liability Insurance. It covers two important forms of financial responsibility as follows:

1. Bodily Injury Liability: a driver who causes an accident (the at-fault party) must cover all medical cost for the treatment of non at-fault party. Treatment and rehabilitation for physical injuries can cost a lot of money on the at-fault’s part without this coverage.

2. Property Damage Liability: the at-fault party should be responsible for vehicle/property damages as well. The cost for vehicle repair or replacement is the at-fault’s burden to bear. The coverage helps cover the expenses.

Liability insurance does not cover medical treatment and vehicle repair for the at-fault’s part. Drivers have to understand that one of the main purposes of auto insurance is to show that they are responsible for any accident that they may cause while they are driving.

Beyond the Road

Auto insurance is not just mandatory requirement by the state. Many (if not all) lenders are reluctant to finance a vehicle unless the borrower agrees to purchase at least minimum coverage requirement. In some cases, lenders also need some optional coverage types such as Collision and Comprehensive to protect the value of the vehicle in the event of both collision and non-collision crashes.

· Collision: in the event of collision after which the policyholder’s vehicle sustains damages, collision coverage helps to pay for repair expense. From lender’s perspectives, Collision coverage helps to maintain the value of the vehicle at least until the policyholder pays if off.

· Comprehensive: when damages are from non-collision instances for examples vandalism, animals, fire, and falling objects, Comprehensive coverage helps to cover the repair cost.

Many lenders require both coverage types before they allow a borrower to drive the car away. Even if the state’s DMV regard the coverage as optional, driver must accept that lenders can make the coverage mandatory for as long as the lease period is valid.

Not-At-Fault

Although it seems that auto insurance is only important for the at-fault party in an accident, the not-at-fault also needs auto insurance for legal reasons. For example: when an uninsured driver becomes the victim in an accident, the police officers in duty should still ask the driver to produce proof of financial responsibility. Failure to produce insurance card or similar document will result in driver license suspension. In worst case scenario, there will be fines, punishment in form of voluntary service for the community, or jail times. No matter what the punishments are, uninsured drivers are in real risks of difficult consequences.

High-Risk Drivers

In the states where auto insurance is mandatory, uninsured drivers (even when they are not at-fault in an accident) also have to deal with potential drivers’ status relegation from low-risk to high-risk; in this case, higher is worse. In the U.S., there are plenty of traffic checkpoints where police officers have the rights to ask for drivers’ insurance information. For those who drive without proof of insurance, there can be penalties such as SR-22 requirement. SR-22 is a certificate to guarantee that the holders will meet insurance requirement. The certificate also indicates high-risk driver status.

How to Deal with High-Risk Status

High-risk is not just a label to indicate a driver’s tendency to break traffic regulation, but it puts heavy weight that the holder must carry in terms of insurance. A high-risk driver cannot apply for random auto insurance and expect easy approval. Most insurers deny such application because they want to avoid potential expensive claims due to reckless behaviors behind the wheel. Once a driver gets his/her high-risk status, any typical insurance company is reluctant to provide coverage. The solution is to turn to non-standard auto insurer.

Standard vs. Non-Standard

Auto coverage from either standard or non-standard insurance company is the same, but there is big difference in price. Because non-standard insurers accept the fact that their customers are high-risk, they tend to charge more expensive premium rate. However, there are some companies from which high-risk drivers have options to lower the cost with discounts or payment options.

Good to Go Auto Insurance is the first name that comes to mind, with its abundant options of discounts for drivers or vehicles that meet the eligibility requirements. A completion of a Driver Course and the existence of Safety Device in vehicle can bring substantial price reductions. Other discounts are available for good students, loyal customers, and ticketless drivers.

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