Parents of soon to be sixteen year olds worry about their child learning how to drive and being safe on the road, but they become even more worrisome about their own wallets when they begin to realize how much it’s going to cost to insure their new driver. It’s no secret that drivers who are 16 get charged a high rate to have insurance on themselves and their vehicle. They haven’t had adequate time to prove to their insurer that they can in fact drive with caution, and with all of the statistics stating they will most likely be involved in accident there’s no room for the new driver (or the parents) to argue. The best thing for parents to do is instead of wasting time worrying about how to pay for the policy, search for a cheaper policy or company instead. It doesn’t have to be a poor quality company by any means, but other companies may offer a cheaper rate for the same policy your current insurer offers now.
Parents might ask themselves, how do we go about finding better or cheaper rates for our teen driver? The answer is simple; stop here at Online Auto Insurance. We can provide any driver with a list of quotes from quality companies in a side by side comparison method, which makes it very easy for anyone to find the cheapest company for their new driver. With an easy process of answering a few questions, you will save time in the quest for the best price on 16 year old drivers insurance. A parent could spend time in the evenings gathering information about other insurers, such as the prices they offer and where they are located. However, many insurers are closed in the evenings, which prevents a problem in gathering their data. We offer our services seven days a week, 24 hours a day. We’re never closed, and we’re always here ready to help insured and uninsured drivers find auto insurance.
In searching for the lowest price on teen insurance, there is some information that is needed by the insurer, or in our method’s case, information that will be needed by us. One benefit here is that the applicant will only need to answer the list of questions once and they will still be given a list of quotes from a number of companies. Without using our system, people will be asking and answering the same questions over and over again as they speak with different insurers. The questions we will be asking applicants are based on the driver and vehicle needing to be insured. These will include the driver’s name, age, address, driving history, and gender. The vehicle information that’s needed is the mileage, where it’s driven, and the make, model and year. In some cases the VIN may be needed as well. After this information is given, there will be a choice about the coverage that is desired by the driver. The applicant can choose the type and the amount wanted.
When the questions have been answered, the applicant will be given access to a listing of quotes and the insurers that are providing them. When the person has finished reviewing the prices and companies, they will have the opportunity to purchase the policy they find most fitting to their situation, but they are in no way obligated to purchase anything.
At this point, parents have a few options when looking at getting the best price to insure their teenager. Obviously they can use our quote comparison tool to find which price is lowest but they can also utilize some other benefits offered by the insurer in the form of discounts. Almost every car insurance company will offer discounts to their policyholders and members. For a teen driver, there is a possibility they could be eligible for the good student discount, as well as any discounts relating to the vehicle they are driving. The good student discount is offered to students who have somewhere around a B or a B+ average in school. Each insurer will give the specific details about the grades that need to be earned, but students who can prove they earn the required grade point average by sending in a copy of their report card each quarter or semester will be rewarded with lower rates. There may stipulations about how long the teen has had their license before qualifying.
Another way to keep the price of the 16 year old’s car insurance low is by giving them a safe car to drive. Certain safety features in vehicles will not only provide the teen with more abilities to be safe, but they will also help get lower rates for the entire policy. Check with your insurer about what features invoke savings.
The third suggestion to get lower rates for your teen is to keep them on the same policy as everyone else in the house. By keeping all drivers on the same policy, insurers give cheaper overall rates as compared to having all drivers on their own separate policy. In addition to this idea, looking for discounts for the policyholder and other members who are not teens will keep the overall price of the policy low. Look into their driving histories and how they can be cleaned up or kept error free.
Discussing the importance of safe driving and setting boundaries with your teen driver can help keep their rates low in an indirect way. When they know the consequences that will come from their parents and the insurance company (a premium hike) if they are involved in a traffic ticket or accident may help them really pay attention to the road and avoid these mishaps. Help them by setting rules about when and where the car can be driven. Give curfews and maximum monthly or weekly mileage amounts for the teen to follow, and be sure they know the punishment for breaking rules. Parents can also demand the teen driver to help pay for their own insurance, either partially or in full, which will help keep the rate lower for the parent’s wallet.
Teenagers are excited to drive and gain this new responsibility, but it’s important they understand the rules so their premium price stays low.
Source
Tuesday, September 29, 2009
Tuesday, September 15, 2009
10 Top Tips for Cutting the Cost of Car Insurance
It is possible to drive down the cost of your car insurance considerably by following a few simple steps– here are our top 10.
1. Shop around
This is the first thing you should do with any type of insurance nowadays, when the internet makes it so easy to compare car insurance quotes from different providers. No longer is it necessary or financially sensible to just accept your renewal or take the first quote you’re given.
This doesn’t always mean looking for the cheapest cover, but instead finding a policy that will suit your requirements precisely, at a price that will suit your budget. It’s free to get quotes from car insurance providers so you’ve nothing to lose in comparing as many as you can until you find the right one for you.
2. Buy online
Another great thing the internet has brought to those needing to find cheap car insurance is the ability to buy online. As well as making the whole process a lot easier for you, as you can arrange your insurance from the comfort of your desktop, buying online is also preferable to your insurer – it means less paperwork and hassle for them.
For this reason many car insurers offer significant discounts just for purchasing your policy online, so next time your car is up for renewal, opt for the online route.
3. Increase your voluntary excess
If you increase the amount you are willing to pay towards a claim before your insurer pays out, this can significantly reduce your car insurance premium. For example if you agreed to pay £100 in the event of a claim instead of £50, your insurer will charge you much less for your premiums.
However this must be balanced against the fact that if an accident or theft does happen and you need to make a claim, you’ll be faced with having to pay out more than if you had opted for a lower excess. You’ll also need to take into account any additional excess some insurers apply to claims if you’re a younger driver.
4. Make your car secure
The more secure your car is, the more your insurer will see you as low-risk and therefore charge you less for insurance. So wherever possible it can really pay to make your car as safe and secure as possible. It's well worth installing an immobiliser and alarm system (preferably Thatcham-approved as not all security systems are accepted by insurers). This will lessen the risk of your car being stolen and so will reduce your insurance premium.
5. Park it safely
Continuing in the same vein, where you park your car can make a significant difference to how safe your car is and therefore how much you’re charged for insurance. If your car is usually left parked at the side of a kerb, for example, it will be more vulnerable to theft and vandalism than if it was securely locked up in your garage.
Although this is not always possible depending on where you live, if you do have the means to stow your car away in a safer place, it’s a good idea to do so – your premiums will be less and your wallet will thank you for it.
6. Cut down your mileage
Again, although this is not always a realistic option if you are required to drive long miles for whatever reason, if you cut down the amount you drive you should see a reduction in your insurance cost.
The less you drive your car, the less vulnerable it is to breaking down, accidents, and so on – so your insurer will see you as lower-risk and charge you lower premiums. Make sure to declare on your policy exactly how much you do drive, and be careful not to over-estimate (although it’s advisable not to under-estimate either – always be truthful).
7. Name another driver
This will particularly apply if you are a younger driver. Insurance premiums can be especially high if you are a young, inexperienced driver, even higher if you happen to be male on top of that (risk statistics show that young male drivers are the demographic most likely to make the more expensive claims). So to help deal with this cost, name another driver on your policy.
This could be a parent who also uses your car, or another older driver. Having a more experienced person named on your insurance will make you a lower-risk customer and so will reduce your premiums. Also, if you drive an additional car, make sure to declare this on your policy – spreading your risk across more than one vehicle can reduce the cost of cover.
However it’s not advisable to get your parent insured as the main driver to save money if you’re a young driver, because if your insurer discovers that you are in fact the main driver it’s very likely they won’t pay out in the event of a claim.
8. Seek out a low-band car
If you are looking to buy a new car, it’s certainly worth bearing in mind how much it’s going to cost you to insure. Some cars are classified in lower insurance bands than others, so when choosing your new set of wheels it may be a good idea to enquire after its band before you buy.
Your car dealer or vendor should be able to tell you how costly your car is going to be to insure, so make sure you look into this and go for a car that won’t cost the earth to cover.
9. Get qualified
Of course your passed driving test proves you are qualified to drive, but there are additional tests available that will make you even more of an expert on the roads. The more qualified you are to drive, the more your insurer will see you as a trustworthy driver and will cut your premiums accordingly.
So if you want to become a better, safer driver and cut the cost of your car insurance in the meantime, it may be worth taking an advanced driving test such as the Pass Plus course – this can be especially beneficial for younger drivers.
10. Steer clear of modifications to your vehicle
If you want to bring the cost of your policy down further, avoid making modifications to your car. As well as making it a more obvious and attractive target to thieves and vandals, modified cars are also seen as more likely to be involved in an accident.
Source
1. Shop around
This is the first thing you should do with any type of insurance nowadays, when the internet makes it so easy to compare car insurance quotes from different providers. No longer is it necessary or financially sensible to just accept your renewal or take the first quote you’re given.
This doesn’t always mean looking for the cheapest cover, but instead finding a policy that will suit your requirements precisely, at a price that will suit your budget. It’s free to get quotes from car insurance providers so you’ve nothing to lose in comparing as many as you can until you find the right one for you.
2. Buy online
Another great thing the internet has brought to those needing to find cheap car insurance is the ability to buy online. As well as making the whole process a lot easier for you, as you can arrange your insurance from the comfort of your desktop, buying online is also preferable to your insurer – it means less paperwork and hassle for them.
For this reason many car insurers offer significant discounts just for purchasing your policy online, so next time your car is up for renewal, opt for the online route.
3. Increase your voluntary excess
If you increase the amount you are willing to pay towards a claim before your insurer pays out, this can significantly reduce your car insurance premium. For example if you agreed to pay £100 in the event of a claim instead of £50, your insurer will charge you much less for your premiums.
However this must be balanced against the fact that if an accident or theft does happen and you need to make a claim, you’ll be faced with having to pay out more than if you had opted for a lower excess. You’ll also need to take into account any additional excess some insurers apply to claims if you’re a younger driver.
4. Make your car secure
The more secure your car is, the more your insurer will see you as low-risk and therefore charge you less for insurance. So wherever possible it can really pay to make your car as safe and secure as possible. It's well worth installing an immobiliser and alarm system (preferably Thatcham-approved as not all security systems are accepted by insurers). This will lessen the risk of your car being stolen and so will reduce your insurance premium.
5. Park it safely
Continuing in the same vein, where you park your car can make a significant difference to how safe your car is and therefore how much you’re charged for insurance. If your car is usually left parked at the side of a kerb, for example, it will be more vulnerable to theft and vandalism than if it was securely locked up in your garage.
Although this is not always possible depending on where you live, if you do have the means to stow your car away in a safer place, it’s a good idea to do so – your premiums will be less and your wallet will thank you for it.
6. Cut down your mileage
Again, although this is not always a realistic option if you are required to drive long miles for whatever reason, if you cut down the amount you drive you should see a reduction in your insurance cost.
The less you drive your car, the less vulnerable it is to breaking down, accidents, and so on – so your insurer will see you as lower-risk and charge you lower premiums. Make sure to declare on your policy exactly how much you do drive, and be careful not to over-estimate (although it’s advisable not to under-estimate either – always be truthful).
7. Name another driver
This will particularly apply if you are a younger driver. Insurance premiums can be especially high if you are a young, inexperienced driver, even higher if you happen to be male on top of that (risk statistics show that young male drivers are the demographic most likely to make the more expensive claims). So to help deal with this cost, name another driver on your policy.
This could be a parent who also uses your car, or another older driver. Having a more experienced person named on your insurance will make you a lower-risk customer and so will reduce your premiums. Also, if you drive an additional car, make sure to declare this on your policy – spreading your risk across more than one vehicle can reduce the cost of cover.
However it’s not advisable to get your parent insured as the main driver to save money if you’re a young driver, because if your insurer discovers that you are in fact the main driver it’s very likely they won’t pay out in the event of a claim.
8. Seek out a low-band car
If you are looking to buy a new car, it’s certainly worth bearing in mind how much it’s going to cost you to insure. Some cars are classified in lower insurance bands than others, so when choosing your new set of wheels it may be a good idea to enquire after its band before you buy.
Your car dealer or vendor should be able to tell you how costly your car is going to be to insure, so make sure you look into this and go for a car that won’t cost the earth to cover.
9. Get qualified
Of course your passed driving test proves you are qualified to drive, but there are additional tests available that will make you even more of an expert on the roads. The more qualified you are to drive, the more your insurer will see you as a trustworthy driver and will cut your premiums accordingly.
So if you want to become a better, safer driver and cut the cost of your car insurance in the meantime, it may be worth taking an advanced driving test such as the Pass Plus course – this can be especially beneficial for younger drivers.
10. Steer clear of modifications to your vehicle
If you want to bring the cost of your policy down further, avoid making modifications to your car. As well as making it a more obvious and attractive target to thieves and vandals, modified cars are also seen as more likely to be involved in an accident.
Source
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