It's a fact that young drivers tend to have a hard time acquiring affordable insurance premiums. One of the biggest obstacles for young drivers is that they usually don't have enough time behind the wheel to prove to insurance companies that they are reliable, safe drivers. Insurance companies see young drivers as potentially high risk and as a result, may purposely ward them off with higher premiums, or offer better premiums to young drivers with better grades or a more stable income. These hurdles can be overcome, however. So listen up, young drivers of the world. Here are the steps to finding good, cheap insurance.
1. Understand what insurance companies can offer you.
Car insurance coverage isn't one type fits all. Companies can offer you a variety of different levels of coverage. Generally speaking, car insurance can be broken down into three categories: liability, vehicle, and medical.
- Liability coverage. Your liability premium is the part of your insurance that covers the damage your vehicle may do to another vehicle in an accident, and is legally required in most states. It also covers medical care and lost wages for other drivers and passengers if you are found at fault in an accident. The size of your vehicle is a major factor in determining your liability premium. An SUV will likely do more damage to another vehicle on the road so the liability premium for this larger make and model will often be higher than a smaller make and model.
- Vehicle coverage. This coverage is broken down into two types: comprehensive coverage and collision coverage. Vehicle coverage is not state mandated, and will vary among insurers. It's a good idea to make sure your insurance plan includes vehicle coverage.
- Medical coverage. This premium is designed to cover any medical expenses for you, your passengers, and other drivers in the event of an accident. Medical coverage varies from company to company. It is a good idea to include this type of coverage in your insurance policy.
2. Consider the pros and the cons of the vehicle you already own or are interested in purchasing.
The make and model of your vehicle will have a big impact on your insurance. Beyond your driving record (which is limited), your zip code, and the demographic of the drivers in your household, the type of car you drive is a major factor to getting a good price on insurance.
- Get a free quote based on the registration number of the vehicle you own or are interested in buying. Most major insurance companies have online rate generators at no extra charge. You can also complete self-quotes online via websites such as netquote or bankrate.
- Be aware of the types of vehicles that will raise your insurance premium. Vehicles that have high horsepower, an expensive price tag, or are expensive to repair also tend to have high insurance premiums. For example, sports cars and luxury cars like Mercedes or Jaguars that require specialty parts, will likely have higher insurance premiums than a Volvo or a mini van.
- Always check if the vehicle you own or may purchase is a previous write-off. This will increase the premium the vehicle will likely have mechanical problems which will cause you to claim on your insurance.
Car insurance coverage isn't one type fits all. Companies can offer you a variety of different levels of coverage. Generally speaking, car insurance can be broken down into three categories: liability, vehicle, and medical.
- Liability coverage. Your liability premium is the part of your insurance that covers the damage your vehicle may do to another vehicle in an accident, and is legally required in most states. It also covers medical care and lost wages for other drivers and passengers if you are found at fault in an accident. The size of your vehicle is a major factor in determining your liability premium. An SUV will likely do more damage to another vehicle on the road so the liability premium for this larger make and model will often be higher than a smaller make and model.
- Vehicle coverage. This coverage is broken down into two types: comprehensive coverage and collision coverage. Vehicle coverage is not state mandated, and will vary among insurers. It's a good idea to make sure your insurance plan includes vehicle coverage.
- Medical coverage. This premium is designed to cover any medical expenses for you, your passengers, and other drivers in the event of an accident. Medical coverage varies from company to company. It is a good idea to include this type of coverage in your insurance policy.
2. Consider the pros and the cons of the vehicle you already own or are interested in purchasing.
The make and model of your vehicle will have a big impact on your insurance. Beyond your driving record (which is limited), your zip code, and the demographic of the drivers in your household, the type of car you drive is a major factor to getting a good price on insurance.
- Get a free quote based on the registration number of the vehicle you own or are interested in buying. Most major insurance companies have online rate generators at no extra charge. You can also complete self-quotes online via websites such as netquote or bankrate.
- Be aware of the types of vehicles that will raise your insurance premium. Vehicles that have high horsepower, an expensive price tag, or are expensive to repair also tend to have high insurance premiums. For example, sports cars and luxury cars like Mercedes or Jaguars that require specialty parts, will likely have higher insurance premiums than a Volvo or a mini van.
- Always check if the vehicle you own or may purchase is a previous write-off. This will increase the premium the vehicle will likely have mechanical problems which will cause you to claim on your insurance.
3. Determine your area rating.
Insurance companies usually use your area of residence or your zip code to help rate your premium. If you live in an area with high crime rates, your insurance will be affected, as the vehicle is at risk of being stolen or damaged.
4. Compare quotes from different companies.
Once you have a clear idea of the insurability of your vehicle, and what acquiring insurance means for you as a driver, look up the insurance packages offered by major insurance companies to see what each one can offer you. The easiest way to compare rates is online. The DMV has a good online site for comparing rates
Insurance companies usually use your area of residence or your zip code to help rate your premium. If you live in an area with high crime rates, your insurance will be affected, as the vehicle is at risk of being stolen or damaged.
4. Compare quotes from different companies.
Once you have a clear idea of the insurability of your vehicle, and what acquiring insurance means for you as a driver, look up the insurance packages offered by major insurance companies to see what each one can offer you. The easiest way to compare rates is online. The DMV has a good online site for comparing rates
No comments:
Post a Comment