Posted: Wed Jan 09, 2008 6:57 pm Post subject: top insurance company
Does anyone know what is in their opinion the top company in regarding rates for a teen driver ? I am in the market or will be soon. What are some points to consider when buying an auto to insure cheaper rates.
Posted: Thu Jan 10, 2008 6:32 am Post subject: Settle for a safe car......
IMO the best and simplest way to reduce the cost of their insurance is by buying a safe car for them. Instead of a sports car, settle for a car with low mileage. This may discourage them from doing the funny things, like-racing on a busy road, and will ensure your peace of mind along with lowering the rate.
Yeah, teen drivers are normally asked to pay more as premium for their auto insurance than an experienced driver. Their inexperience as a driver and the general tendency to flaunt before their friends/colleagues, contributes towards it. And this is often supported by the statistics. The figures depict that the young drivers are the cause of more than 50 % of the fatal accidents in the roads of America.
The rule of thumb says that if you want to purchase an auto policy for your teen you have to pay more towards it. Frankly, there is no way in sight to buy a cheap auto policy for the young driver. But doing comparison shopping may help you in lowering the cost to some extent. And some other ways are
Add high deductibles to the policy
Add safety measures to the car or purchase a car with high safety rating
Encourage them to take driving lessons
Encourage them to maintain good grades at school
I personally practiced the policy of increasing their allowance (a little, ofcourse ) as a reward for responsible driving.
The average cost of an auto policy depends upon the following factors:
The age of the driver: the premium rate is likely experience a peak when the driver is young and lowers gradually as the driver grow old.
The type of the coverage on the car: depending upon the vehicle, the driver may need to carry liability coverage, collision and comprehensive coverage, PIP and other to ensure full safety. The driver, in due course, may decide to add or drop some of the coverages.
The usages of the car: the purpose of using the car may also act as a determinant of the premium rate. If the car is used to drive to workplace and back home, you may have to pay less on it. Lower mileage on the car may attract lower premium. The area you are driving also affects the rate.
Another important factor is your state of residence. People living in the states with high density of population, experience higher rate of premium.
The above mentioned factors contribute collectively in deciding our premium. Insure your teen with the oldest car of the family. Then you may consider dropping the collision coverage on it in order to save money. Restrict the mileage driven on the car. Limited use of the car will lower the rate. Buy a midsize safe car for the teen. Introduction of safety equipments like- anti lock brakes, electronic stability control etc. may help as well.
Posted: Mon Jan 14, 2008 9:09 pm Post subject: Thank god!
I just found out today that my 21 year old son's insurance premium went from 446 to 186 a month. It is due for renewable at a lower rate. That will be a much lighter load on his shoulders. He and I are so pleased ! Of course he has a small down payment to begin this new rate but even that ius smaller than before. I am so pleased beyond words.
I just found out today that my 21 year old son's insurance premium went from 446 to 186 a month. It is due for renewable at a lower rate.
Great news, indeed. Well, I believe that you haven't compromised with his coverage level.
Quote:
I am so pleased beyond words.
And you should, very deservingly. Its not only lifting the burden from your budget but also relieveing your mind.
However, it is a normal trend, and the auto insurance premium rate curve takes a bell shape. The premium rate touches its peak when the driver is young and inexperienced and comes down gradually with his/her age. Hope he will continue enjoying the lower rate, just keep encouraging him for safe driving.
Yes, I will. But I misunderstood him. The new rate is not under the same carrier ,their rate was just as high on renewal as before,if not more. It was through another carrier he had found the cheaper rates. Where ever it is, I am so happy for him!
I don't believe he changed the deductable. I said something to him once about that option and he argued against it.So I am fairly sure he didn't change that. The usual deduct is 500 isn't.I wish we could all afford 200 deduct.That would be ideal.
IF YOU ARE SHOPPING AROUND, DEDUCTIBLES ARE NOT THE ONLY COVERAGE'S THAT SHOULD BE PAYING ATTENTION TO. MAKE SURE YOU HAVE LIABILITY LIMITS THAT MEET YOUR NEEDS AND THAT YOU ARE NOT CUTTING THEM IN HALF EVERY TIME YOU CALL A NEW COMPANY.
) as a reward for responsible driving.
