Apr 22
adminArticles Accidents, Advices, Age Group, Age Groups, Car Insurance Rates, Car Owners, Cheap Auto Insurance, Claims History, Demographic Group, Driving Schools, Getting Insurance, Group Insurance, Haste, Insurance Companies, Insurance Company, Insurance Quotes, Safe Car, Traffic Violations, Young Adults, Young Drivers
Most of you are probably well aware of the fact that different age groups of drivers get different insurance rates, and the difference can be quite significant. Why the discrimination, you might ask? Well, don’t haste with accusing insurance company with unfair pricing, as there is a set of reasons behind such practices. When speaking about age groups and pricing, you have to understand how the insurance companies assess risk and set the rates you get when quoting.
The primary factors determining the price you will pay for insurance are risk and claim history within your demographic group. Insurance companies analyze the costs of insuring each age group and set their rates respectively. And due to a set of reasons, young adults are considered to be the most risky car owners, thus the high rates a young driver will receive when getting insurance quotes. That’s because young drivers have a larger claims history as a group, and the accidents they end up in tend to be more devastating and costly. Of course, it doesn’t mean that all teenagers and young adults get crazy on the road and have serious accidents. But that’s the situation when one has to pay for other’s mistakes, and unfortunately there’s little you can do about it.
But little doesn’t mean nothing. If you are a young driver looking for cheap auto insurance, you still have chances of getting better rates if your follow some of the following advices. Of course, they won’t drop your rates instantly and dramatically but by combining them you will be able to get quite reasonable car insurance rates.
Be a good driver
Being a good driver with a clean driving record with no accidents or traffic violations always pays of no matter how old are you. But you can go beyond that. Enroll in special driving schools and employ a defensive driving style – having proof of your good safe driving abilities will definitely give your significant discounts from the insurance company.
Buy a safe car
When you are young, you want to be fast and furious. That’s your right, but if you buy a fast sports car don’t expect to get advantageous auto insurance quotes for it. Sports and muscle cars are considered to be risky and have high insurance costs, so insurance companies will always charge more for owning a Mitsubishi Lancer Evo than for a VW Golf. That’s why you should think about the car you want to drive before actually buying it.
Do some comparison shopping
Shopping around has never hurt anyone. In fact, getting more auto insurance quotes from different companies will help you find a really competitive policy. Some companies give young drivers lower rates than others, so why not spending a bit of your time on comparing auto insurance quotes if you can save quite well on it? Besides there are so many free quote sites out there that it would be simply a crime to leave such a great opportunity for saving some money on car insurance unnoticed.
Apr 10
adminArticles Auto Insurance, Buying Auto, Car Insur, Car Insura, Car Make And Model, Car Models, Cheap Car Insurance, Credit Information, Credit Rating, Credit Scores, Exact Methods, Haste, Insurance Claims, Insurance Companies, Insurance Providers, Insurance Rules, Playing The Game, Poor Credit, Purchasing A Car, Safety Tip, Time Accident
Doesn’t it feel sometimes that when it comes to auto insurance it’s like playing the game no one tells you how to play it right and where the rules are written without your consent? Well, to ease the situation, here are some auto insurance rules most insurance companies won’t tell you about.
1. If your credit rating is good you will have better rates.
Most of the insurance providers, whether big or small, use credit information to determine the rates you will be charged with. That’s because numerous studies have shown that there’s a direct link between a person’s credit rating and the probability that the very same person would file an insurance claim. Those who have poor credit scores tend to file claims more often than drivers with good credit reports. And we know how insurance companies don’t like insurance claims.
Tip: If your credit report is not that good, don’t haste with buying auto insurance. First, make sure you have settled all your debts and closed unused credit lines. After doing this wait for a month and your rates will be much lower than you would expect.
2. The model of your car affects your premiums.
Insurance companies don’t disclose the exact methods they use to calculate their rates, but your car make and model certainly plays an important part in the equation. All insurance providers have charts on all car models and their respective insurance cost based on theft rates, repair costs and overall safety.
Tip: Try purchasing a car with reasonable repair costs, good safety scores and low theft rates in your area in the first place. This will always give you the chance of having cheap car insurance.
3. Bad driving means higher rates.
Most insurance companies will raise your rates up to 40% of the initial premium you’ve paid if you have a single at fault accident. However, not all companies follow this rule.
Tip: There are insurance providers that have higher tolerance for first-time accident drivers. So when you purchase your cheap car insurance policy or ask the provider if they have such incentives and what are their rules.
4. If your friend borrows your car and ends up in an accident you will still have to pay higher premiums.
It doesn’t matter who was driving the car if it was with your own consent. It will be you who will file the claim and this will eventually lead to increase in your premiums.
Tip: In case you didn’t give consent on using your vehicle your friend will be liable for the accident. However, if he or she doesn’t have own insurance or the damage resulted exceeds the amount of coverage contained with his or her policy the other party may come to you in order to settle additional medical and repair costs.
5. Official cancellation is required when switching providers.
You are free to cancel your policy any time you feel the need to. All that is required is to inform your current provider in written form.
Tip: After you have searched for cheap car insurance and chosen another provider you can simply contact your insurance agent and inform him that you want to cancel your current policy from a certain day. In most cases the company will send you a filled out form where only your signature will be required.
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