Auto Insurance Tips

Congratulations! You’ve started driving, now get ready to open your wallet:S. Auto insurance is required by law and everybody must pay to get it regardless of age or skill level. When I first started driving, the process of getting insured was fairly straight-forward since I just went to my parent’s insurance agent and got tacked on to their policy. This may be the best case scenario for many new drivers as well, but it is not always the best route to take. Here are some tips to make sure that you are getting the best deal possible and your likely limited funds are not being unnecessarily wasted.

Latching on to your Parents Policy

This is the route that the vast majority of first time drivers choose to take, and for good reason. Most of the time it is cheaper, and your parents likely have some sort of rapport built up with their agent. The reason that this method is often times cheaper, is due to the beauty of the “multi-line discount”. What this means is that many insurance companies will offer a discount to policy holders who have multiple lines of coverage through their company. In my case, my parents had home-owners, auto, and life insurance through the same agent, and as such I was able to see a significant discount in my premiums.

Sidenote: an insurance premium refers to the monthly payment that is due to keep your insurance policy in effect. A deductible refers to a one time payment made (often $100, $250, $500, or $1000 depending on your plan) if you have an accident and must file an insurance claim. In theory the insurer will cover any additional expenses above and beyond the deductible you pay to them.

Why so Expensive?

Even with the discounts from your parents policies however insurance will NOT be cheap. Much of this stems from the fact that statistically teens and early 20-somethings have the about the highest rate of automotive accidents. This number subsides for many years and starts to rise again past the age 60 or so. Insurance premiums follow this curve, and are highest when you are first starting to drive, and again when you are getting too old to be driving. Your rates will drop significantly when you reach age 25 for most insurers, and stay relatively low until you’re old and gray. I was 16 when I purchased my first vehicle (nothing special, just a 1989 F-150 pickup truck), and with all the discounts (including good student discount), I was still paying on order of $100 a month for liability only coverage… Things got even more crazy several years later when I purchased a sportier two door Mitsubishi Eclipse which cost me over $250 a month for full coverage. (This was more than my monthly car payment for the vehicle. As I write this now, I am 26 years old, and pay around $75 a month for full coverage on my current vehicle.

Insurance Price Factors

The main factors that will affect your initial premium rate are: age, multiple policy discounts, Good student discounts, type of car you drive, and family driver history (if you are using your parents insurer). Type of Car: As a general rule, the sportier the car, the more expensive your insurance will be. Duh. It’s no secret that when given a fast car and the right circumstances, most teens will drive fast. I certainly did, and I have the traffic tickets to prove it. There is an interesting proviso to this however, because some fast cars can be cheaper than others. This applies mainly to sport sedans, and luxury sedans which are viewed by insurance companies to be safer, and statistically involved in less accidents. It’s hard to offer exact guidance here, because every company is different, but if you’re car shopping for your first ride as well, it will never hurt to call up your (or your parents agent) to find out which cars on your favorites list are going to be the cheapest to insure. Good Student Discount: This is a fairly popular discount offered by most companies, because according to their statistics, students with GPA’s above a 3.0 are generally involved in less traffic incidents, and are thus given better rates. Yeah, good grades to pay off sometimes… who would have thought.

Non-Parent Policies If your parents policy has a laundry list of accidents attached to it, it might be a good idea to seek insurance on your own. A great way to do this is online, by filling out free quotes from various popular insurance agencies (many of whose links can be found throughout this site). One nifty little trick to consider as well, is to purchase the cheapest term life insurance policy along with your auto insurance. In my case when I moved out and detached from my parents policy, I added the lowest life insurance policy to my auto insurance, and with the discount I received from having multiple lines of coverage through the same company it was actually cheaper for both policies than just automotive by itself. Weird, I know.

Wrap Up Summing up this article, if your parents are in good standing with their insurance company, your best bet is probably to use their agent. If not, or if you are already living on your own, get multiple quotes from different insurance companies, and be sure to ask about multi-line discounts if you purchase cheap life insurance from them as well. Even if it doesn’t save you any money, often times you can pick up valuable coverage such as renters insurance for next to nothing with your multi line discount.

Are you searching for a cheap auto insurance deal for your car? If yes, you may need to consider these guidelines.

Patronize the same insurance company. When shopping for insurance deals, it is a wise idea to buy all the policy packages you need from the same provider. If you already have an active insurance deal, you should request for an auto insurance inclusion. This will make them give you lower rates and place you in a multi-policy agreement.

The company already knows your financial stand and pay records. They can conveniently access your records and place you correctly for an appropriate and cheap car insurance deal with them. This is a great plus to you since you are getting quality coverage and an affordable deal.

Choose higher deductible. A deductible is the amount you are prepared to pay in case of any happenstance e.g. if there’s an accident and it will cost $1500 to repair and you are prepared to advance $500, your provider may be happier for this and give you discounts; the higher the deductibles the lower the premium.

Do not go for very expensive cars except if you are rich enough to pay the accompanying high rates attached to expensive cars. Cheaper cars have spare parts available everywhere and these parts are also cheap to buy when repairing or replacing.

Pay your premium annually if you can. This will cut off the interest normally built into the monthly payment plan.

Where To Get Reliable Car Insurance Providers and Compare Their Rates Online?

A younger driver often experiences the issues with the extreme cost of Auto Insurance rates. Most everyone argues that age and experience should not make a difference, if the driver has not had an accident or received any tickets.

Insurance companies consider younger drivers a higher risk, because they typically don’t have the experience or carry responsibility.

What is considered a younger driver? These drivers are someone under the age of 25 years old.

These are the top 3 tips that an a younger driver can do to get lower car insurance rates?

1. Whether they are in High School or College, having a Good Student Discount provides up to a 30% discount on the monthly premium. A good Student Discount is having a Grade Point Average of 3.0 or higher.

2. Have the drivers policies remain within their parents household policies. The will give the driver the multi-car, home and possibly life discounts. The multi-car, and multipolicy discounts are a huge discount on the monthly premiums.

3. Most importantly is making sure the driver’s driving record is 100% clean. If there are any tickets or accidents, the monthly rates will skyrocket by as much as 300%.

There are several other factors that affect the car insurance rates for youthful drivers, such as no prior, single, 1 policy, bad credit, and high risk vehicles. They must remember that insurance companies consider these youthful drivers a risk, based on prior loss rates of drivers in the age of 16-25 years old.

I hope that this was an informative article on Auto Insurance Tips for Young Drivers.

Have you come here to look for advice and tips on NC auto insurance? If so, then you have come to the right place. We all want to get the best value for our money. This can be especially true when you have to make indefinite monthly payments on items like cable, internet, or car insurance. If you can follow these auto insurance tips, you should end up with a lower monthly premium. Pay close attention to what we are going to tell you, because we are going to give you some advice that will help you out.

To begin with, you need to have a good driving record to qualify for low payments. It is too late to change any accidents or speeding tickets that happened in the past, but know that you should strive for a clean driving record in the future. Drive slower and, if possible, drive less.

Not only is it better for the environment, but it lowers your chances of accident and therefore lowers your monthly bill.

You should also consider driving a more conservative car. Sports cars automatically raise your insurance premium. If you feel you have to have a sports car, look for one that is easy to repair. The easier and cheaper repairs are, the less you will have to pay for insurance.

Another auto insurance tip to lower your premium is as simple as shopping around for the best deal. Every company seems to specialize in a certain type of coverage: multiple vehicles, young drivers, etc. Find the company that will give you the best price for your individual driving needs.

Also, you should consider the amount you want to pledge for your deductible versus your monthly insurance payments. If your deductible, the amount you pay out of pocket for accident repairs, is higher, then your monthly bill will be lower. The opposite is also true. Spend some time to do the math and figure out which combination gives you the greatest savings.

With these NC auto insurance tips and some common sense, you should be able to get the lowest insurance rate possible. When you get the lowest rates out there, you will be able to save up that money each month. Perhaps you would like to save up for a lovely vacation that you have been wanting for awhile? Then, you could also put that extra insurance money that you are saving towards your child’s future.