Cheapest Auto Insurance for Teens and High Risk Drivers
There are many things that will affect one's automobile insurance rates. Age is only one of these factors. If you are a teen driver or are the parent of one, you will need to focus on the other areas to keep your premiums down.
Why do teenage drivers pay so much? It is simple. The insurance companies have no driving history or a limited driving record on which to base their policy's rates.Typically young drivers will have two opportunities to lower their cost for car insurance that are not available to older drivers. They can get a ten percent discount with most auto insurance carriers if they successfully complete a drivers education course. They can get an additional ten percent reduction by maintaining a B average in school.
Another factor that impacts one's car insurance policy's rates is the physical damage options one chooses when getting a policy. Physical damage coverage is the part of your policy that pays to repair or replace your car.
Physical damage coverage has two components. One is the collision coverage. This pays the cost to repair damage caused by many perils including car accidents. The second is the other than collision coverage. This pays to repair damage caused by various perils including theft and vandalism.
You can drop this coverage all together. You can drop the collision coverage and keep the other than collision coverage. You can reduce the applicable deductible or deductibles.
If your automobile is financed or leased, the lienholder is likely to limit how much you can reduce the physical damage coverage on your car. Since your automobile is the collateral for the loan or actually owned by the lessor, the lienholder has a right to expect that your auto is always insured with adequate physical damage coverage.
You will not be able to cut out the collision or comprehensive coverage if your automobile is not owned out right by you. You may be able to raise the deductibles and reduce your costs. You should check to contract you have with them to know what deductible limits are allowable.
If you drive an expensive car you may not want to increase your deductible. Lowering your costs for insurance may start with purchasing older cars that require less insurance coverage.
Another factor that affects one's insurance premiums is your location. If you live in a high crime area, the portion of your premium that goes toward the risk of theft is affected. If you live in an area where there is a lot of congestion on the roads, your chances of getting into an accident are affected. The chance or your auto being stolen, vandalized or hit by another car are all affected by where you live.
Although few people will make a decision about where to live based only on their potential auto insurance premiums, it should be one factor you consider before moving. If you
have a choice of living in more than one place, it may be a good idea to get car insurance estimates before making a choice. The cost of homeowners insurance and medical insurance are also impacted by location.
Even more important than saving money is saving your life and the lives of those you love. Because of this doing all the things that can keep tickets and accidents off your motor vehicle history are paramount. You can save more than just money by being a better driver.
There are many factors that impact your car insurance premiums. Your age is only one factor. Discounts are available to teen drivers based on their taking drivers' education and their GPA. Making sure that you have no more physical damage coverage than you need can also cut your costs. Maintaining a good ticket-free driving record is crucial. Article Source: http://EzineArticles.com/6577001