The car insurance premium you are approved for may be tantalizingly low, but cheap car insurance almost always means that there are extra fees, a large list of non-covered items and circumstances, skimpy coverage, etc. The following are some common ways low cost auto insurance companies provide such low auto insurance rates:
• Vehicle Value: The valuation of a vehicle may be standard – most insurers and lenders use Kelley Blue Book values or some other such service. Who is to say if a vehicle is in “fair” or “good” condition? Low cost car insurance companies may devalue your vehicle in order to offer you a lower car insurance premium – do not be fooled. If your vehicle gets totaled, your car insurance company will only pay the value listed; so, if your car insurance agent lists your vehicle as being worth $5,000 and bases your premiums on this, even if your car is worth $11,000, you will receive no more than $5,000 if your car is totaled.
• Waiving Coverage: Some low cost auto insurance companies will have you waive coverage instead. For example, in states like Pennsylvania, tort coverage (coverage for you, the driver; includes damages to your own car and personal injury costs) can be waived. While waiving your tort coverage may be a sure way to a lower car insurance premium, doing so also removes your ability to claim compensation if you are the victim of an accident.
• Liability Levels: Some auto insurance companies will offer cheap car insurance premiums by manipulating your liability levels as well. Liability coverage protects you financially if you are in an accident; liability covers the amount for which you are liable. While each state has its own minimum levels for liability coverage, advisable liability levels are often much higher; if you do get in an accident and do not have enough liability coverage to cover the damages (and lawsuit), the burden falls to you personally.
• Comprehensive Coverage: Comprehensive coverage is a sort of catchall; it covers you if you have hail damage, vandalism, or a tree falls on your car. Low cost auto insurance companies also frequently do not provide comprehensive coverage on your vehicle in order to be able to give you a lower quote. Hidden Charges: Lastly, keep in mind that it is also not uncommon for there to be hidden fees and charges within your cheap car insurance policy.
Showing posts with label auto. Show all posts
Showing posts with label auto. Show all posts
Wednesday, January 5, 2011
Tuesday, January 4, 2011
Why Teenagers or Students Can Expect To Pay Higher Auto Insurance Rates
As parents of teenage drivers know well, auto insurance rates for teenagers are quite expensive, even more than usual. There are a number of reasons why teenagers pay higher car insurance premiums than other age groups.
No Driving Record
The first reason young driver’s auto insurance is so expensive is because they have little to no driving record. Without the ability to gauge just how safe or dangerous a driver your teenager is, an insurance company assumes they may be dangerous, and they adjust premium rates accordingly, usually in line with general statistics for your driver’s age and gender.
Statistical Dangers
Without an established driving record to review, car insurance companies rely heavily on statistics to calculate the risk posed by a teenage driver. Teenage drivers are much more of an accident risk, or high risk, than adult drivers. Young drivers are involved in a much higher percentage of catastrophic traffic accidents than adults. As a result of these statistics, auto insurers consider teenagers to be a much higher insurance risk than people of other age groups, and therefore do not provide the same low car insurance rates they do responsible, mature drivers.
Foolish Behavior
It’s probably not much of a surprise that automobile insurance companies believe that teenagers engage in a higher incidence of foolish and dangerous behavior when driving a car. Teenagers are known to race other cars, perform silly and dangerous stunts, weave in and out of traffic, drive fast and recklessly, and become much more easily distracted with the radio and cell phones. Even though your teenager is likely to require more expensive auto insurance, there are a number of things you can do to get lower car insurance rates. You can buy them an older, less expensive car; you can increase their deductibles; you can apply for good student discounts as well as low mileage discounts since they mainly commute to and from school; parents can require their children to take a driver’s education course; and you can lower their coverage and liability limits.
Car Insurance For Teenagers
If you have a teenage driver in your family and would like to find the best quotes on car insurance, My Car Insurance Rates can help you find a great rate within just a few minutes. So take a moment now and compare auto insurance rates from multiple nationwide car insurance companies, and start saving on auto insurance today.
No Driving Record
The first reason young driver’s auto insurance is so expensive is because they have little to no driving record. Without the ability to gauge just how safe or dangerous a driver your teenager is, an insurance company assumes they may be dangerous, and they adjust premium rates accordingly, usually in line with general statistics for your driver’s age and gender.
Statistical Dangers
Without an established driving record to review, car insurance companies rely heavily on statistics to calculate the risk posed by a teenage driver. Teenage drivers are much more of an accident risk, or high risk, than adult drivers. Young drivers are involved in a much higher percentage of catastrophic traffic accidents than adults. As a result of these statistics, auto insurers consider teenagers to be a much higher insurance risk than people of other age groups, and therefore do not provide the same low car insurance rates they do responsible, mature drivers.
Foolish Behavior
It’s probably not much of a surprise that automobile insurance companies believe that teenagers engage in a higher incidence of foolish and dangerous behavior when driving a car. Teenagers are known to race other cars, perform silly and dangerous stunts, weave in and out of traffic, drive fast and recklessly, and become much more easily distracted with the radio and cell phones. Even though your teenager is likely to require more expensive auto insurance, there are a number of things you can do to get lower car insurance rates. You can buy them an older, less expensive car; you can increase their deductibles; you can apply for good student discounts as well as low mileage discounts since they mainly commute to and from school; parents can require their children to take a driver’s education course; and you can lower their coverage and liability limits.
Car Insurance For Teenagers
If you have a teenage driver in your family and would like to find the best quotes on car insurance, My Car Insurance Rates can help you find a great rate within just a few minutes. So take a moment now and compare auto insurance rates from multiple nationwide car insurance companies, and start saving on auto insurance today.
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