Insuring Your Teen’s Vehicle in His Name

August 4th, 2013

When children reach driving age, Auto Insurance Deals, many parents find themselves shocked and completely unprepared for how a young driver affects their insurance policy. Not only is there usually a substantial increase in premium, but additional risk factors to consider as well. Adding a young driver to your policy may result in a premium increase that seems insurmountable. However, there are some steps you can take to ensure that you are ready to embrace these changes. Ask your insurance agent to give you a mock quote for adding a young driver, before your child actually obtains a driver’s license. This way, you can get a ballpark idea of what the rate increase may be. Next, begin to strategize. Find out if there are discounts available for good grades or driver training courses and, encourage your teen to meet the necessary criteria. You might also require that your teen obtain a job to pay for part of the insurance premium. Or, this might be the time to look at the coverages you currently carry and see if there is anywhere that you can cut costs. Examples might be dropping comprehensive or collision coverage on older vehicles or raising deductibles. Whatever you do to help absorb the cost of a teen driver, it would be wise to save toward this change long before it happens. In addition to financially planning for your teen driver, you might want to consider taking out an Umbrella policy. This policy will protect your assets beyond the limits of your automobile policy and ensure that you are protected in the event of a lawsuit stemming from damages caused by an inexperienced teen driver. Navigating the changes involved in adding a teen driver to your policy can be daunting, but with a little advance planning, it can be a smooth transition.

How Your State Helps Determine Your Insurance Rates

June 19th, 2013

There are a myriad of factors that determine the cost of your car insurance premium. One of those factors is the state that you reside in. To the surprise of many drivers, there are numerous factors that vary from state to state that affect car insurance rates. In fact, according to the Insurance Information Institute, car insurance rates for Iowa residents may be as much as half of what Louisiana residents with the same exact coverage might pay. The differences between car insurance rates from state to state are directly tied to the demographic, political, geographic, and economic conditions of each state.

Relationship Between Politics and Car Insurance

Every state establishes its own minimum liability requirements. These state mandated minimum limits are designed to protect drivers from property damage and injury caused by uninsured and underinsured motorists. These minimum liability requirements are set by each state’s legislature or designated regulatory agencies. Due to the political nature of these entities, states that have a democratic majority tend to have higher insurance rates than their republican counterparts.

Rural vs. Urban States

The number of large cities a state has and its population density also play a large role in the cost of car insurance in the state. Urban states with a large population like New York and California have more drivers on the road than rural states like Indiana and Iowa. With less drivers and accidents, rural states tend to have much lower car insurance rates.

Effect of State Economies

Like any other industry, car insurance companies are driven by profits. This means car insurance companies are likely to charge higher premiums in states where they take more losses. Thus, certain states with large populations or a higher than average number of car thefts have higher average insurance premiums. Also, states with strong economies have more new cars on the road. Since new cars cost more to fix or replace than older cars, car insurance companies increase rates in these states as a result.

States with poor economies tend to have a larger percentage of older cars on the road. Due to the fact that cars depreciate in value as they age, states with slower economies have lower insurance rates, because older cars cost less to repair or replace monetarily.

Other State Factors

Other state factors that help determine the insurance rates of a state include the state’s average income and education level. However, tort law is probably the largest remaining factor. Tort law applies to how states govern civil law suits against certain industries. States with liberal leaning tort laws typically have more civil cases brought against car insurance companies, which cost the companies more money, resulting in higher insurance rates.

As you can see, there are numerous state factors that affect the cost of car insurance. People living in rural and conservative states have fewer accidents, lower repair costs, and legislature that favors insurance companies, equaling lower car insurance rates for their drivers. If you live in such a state, you may have the luxury of saving hundreds or thousands of dollars in car insurance costs.

Insurance Impact of Your Teen Getting His License

May 12th, 2013

Most often, a car insurance company only raises insurance premiums after accidents and when a teen is added to the policy. This can substantially raise the premium. Therefore, before adding a teen to the auto insurance policy, look into some ways to minimize costs.

First, check into whether it is less expensive to purchase a separate policy. It is easy to get an estimate for this by obtaining a number of quotes from can insurance providers.

When another policy is in place to cover the teen, some carriers may allow teens to be listed as an occasional Read the rest of this entry »

Comparing Premiums for Automotive Insurance Carriers

March 21st, 2013

When buying car insurance, it pays to compare premiums for different policies from different carriers. Insurance carriers have different underwriting guidelines, and you could be quoted wildly different rates for the same policy.

Shopping around
The main ways to compare premiums for insurance policies is over the phone, on the Internet or in person. Each method has its pros and cons. Getting quotes over the phone and on the Internet doesn’t take a lot of effort and allows you to get many quotes. On the other hand, meeting with agents allows you to delve deeper into Read the rest of this entry »

Adding a New Vehicle to Your Automotive Policy

March 20th, 2013

If you’ve recently purchased a new or used car, it is essential that you add the vehicle to your insurance policy. It is a requirement by law that all cars carry insurance if you’re going to be driving the car on the road with other drivers. The best way to add a car to your policy is to do so on the Internet. Most insurance providers have websites where you can create accounts, view your policy, pay your bill and even make adjustments to the cars on your coverage.

When Read the rest of this entry »

Is a Multi-Policy Discount Really a Great Deal?

March 16th, 2013

One way to save on insurance is to get more than one policy from the same insurer, which often gets you a discount off of what you would have paid separately for each policy. Multi-policy discounts can save you money but are not always the best deal.

There are a couple of different ways you can get multi-policy discounts. You can get two or more of the same policies from the same insurer, such as car insurance for you, your spouse and children, or you can get more than Read the rest of this entry »

Educational Discounts and Other Savings on Teen Driver Insurance

March 13th, 2013

Teen drivers are known to cause a large portion of the car crashes. As a matter of fact, the number one way that teens lose their lives in this country is the car collision. The main reason that they are involved in so many car accidents is because they are new inexperienced drivers. Because of this, they are automatically placed in the high-risk category, and their parents’ auto insurance rates increase astronomically when they add their teens to their policies.

Teens who are good students in Read the rest of this entry »

Planning for Automobile Insurance Changes with Your Teen Driver

March 10th, 2013

When children reach driving age, many parents find themselves shocked and completely unprepared for how a young driver affects their insurance policy. Not only is there usually a substantial increase in premium, but additional risk factors to consider as well.

Adding a young driver to your policy may result in a premium increase that seems insurmountable. However, there are some steps you can take to ensure that you are ready to embrace these changes.

Ask your insurance agent to give you a mock quote for adding a young driver, before your child actually obtains a driver’ Read the rest of this entry »