States laws require that anyone who controls an automotive vehicle be covered by an car insurance policy. In the case of a teenager, most policies do not automatically provide coverage for household occupants unless they are specified as a driver and non-driving residents must be listed as “excluded”. If a adolescent resides in the same home and is not listed on the policy, it is likely that they are not covered unless added to the policy and a premium is charged.
If a teen drivers becomes newly licensed, be sure to get hold of the insuring carrier to have them named as drivers and remove from being listed as excluded. Never assume coverage without first verifying with the insurance firm.
Car Insurance Comparison for Teenagers
The first thing that parents should consider is whether they should add them to their existing policy or insure them individually. The best step to help decide this is to compare the difference in price. First see how much the premium would elevate if added onto the ongoing policy and compare it to insuring them on an individual basis. Keep in mind that there are pros and cons to adding the adolescent to the parent’s policy:
* Pros – The teenager can drive any other vehicle on the insurance policy and other drivers can also drive the teen’s vehicle.
* Cons – The premium for other vehicles on the policy may be increased.
Cheap Auto Insurance for teenage Drivers
Buying the right vehicle can result in large savings when it comes to insuring teens. Keep in mind that fast cars and a teenager can become a very costly combination. It would be in one’s best interest to buy their new driver an economical and reliable automobile. This will definitely maintain rates down and may be a lot safer for an inexperienced motorist.
Also, financing autos usually means having to acquire comprehensive and collision coverage which in turn will only add to the cost of a premium. If possible, it may be a good to buy lower end vehicles that can be paid with cash on hand to avoid having to purchase extra coverage. If one does need to finance a vehicle it may be wise to consider raising the deductible when purchasing a insurance policy. This can lower premiums but one must keep in mind that this is the amount that would have to be paid in the event that a claim is filed.
There are actions that can be taken to ensure finding the most affordable insurance for young drivers since they tend to pay the highest rates compared to any other age group. It’s important to take advantage of any savings that one can find. One of the basic ways to keep premiums down is to add teens to a parent or guardian’s existing policy. With that being said, it could be beneficial to shop around. The parent’s current carrier may not be the cheapest when it comes to insuring adolescents. Most companies view a teen as a high risk and each company will price coverage differently. Comparison shopping can often help find providers that are softer in price when it comes to younger automobilists.
Be sure to take advantage of discounts. Many carriers will offer a discount of adequate to 20% for students that maintain a “B” grade point average or higher. This can lower the premium considerably. Some insurance companies will also offer lower rates to youngsters who have completed a safe driving course. A certificate of pass completion may be needed to be presented to the insurer in order to receive this reduction in rate.
Practice safe driving. It is imperative that parents instruct their youngsters the importance of always obeying traffic laws and controlling vehicles safely. By avoiding accidents and fines they will be eligible for a good driver deduction after a certain amount of time behind the steering wheel. This can usually save around 20% on the price of a premium and in combination with other discounts the savings can be quite substantial.
Whenever you’re shopping for car insurance, you know there are certain essential factors influencing your rate that are out of your hands. Such factors include your age, gender and record of prior claims. Despite this, there’s a lot you can do to hit a lower rate, and your choices bear more power than you might think. Here are few tips guaranteed to help you get the best rate possible on your auto insurance.
Car Insurance Comparison
Before you buy a new or used car, check into insurance costs. Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likeliness of theft. Many insurers offer price reduction for features that reduce the risk of injuries or theft. These include daytime running lights and anti-theft devices.
Deductibles are what you pay before your insurance policy sets in. By requesting higher deductibles, you can lower your costs considerably. For example, increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15 to 30 percent. Going to a $1,000 deductible can save you 40 percent or more. Before choosing a higher deductible, be sure you have enough money set aside to pay it if you have a claim.
Many insurers will give you a break if you buy two or more types of insurance. You may also get a reduction if you have more than one vehicle insured with the same company. Some insurers reduce the rates for long-time customers. But it still makes sense to shop around! You may save money buying from different insurance firm, compared with a multi-policy discount.
Good Credit Record Saves
Building a solid credit history can cut your insurance costs. Insurers are more and more using credit information to price auto insurance policies. To protect your credit standing, pay your bills on time, don’t obtain more credit than you need and keep your credit balances as low as possible. Check your credit record regularly and have any faults corrected promptly so that your record remains accurate.
Safe Drivers Benefit More
Companies offer discounts to policyholders who have not had any accidents or moving violations for a number of years. You may also get a discount if you take a defensive driving course. If there is a young driver on the policy who is a good student, has taken a drivers education course or is at a college out of the area without a car, you may also qualify for a lower rate.
“Company prices are very different, and it pays to browse around. You can easily end up paying double from one company to the next,” says Nick Nicholaidis, PR Manager with the Insurance4LessDirect.
There are a host of independent Web sites, like Insurance4lessdirect.com, that allow you to comparison-shop by offering online price quotes. These sites can be incredibly useful.