Tuesday, December 6, 2011
Reducing Insurance Prices for Teenage Drivers
Young drivers pay more for car insurance. However, there are strategies to pay less at any age.
Why do teenage drivers pay so much? It is simple. Car insurance companies have no driving history or a limited driving record on which to base their policy's rates.
Typically recently licensed drivers will have two opportunities to lower their insurance premiums that are not available to older drivers. They can get a ten percent reduction with most companies if they successfully complete a drivers education course. They can get an additional ten percent discount by maintaining a high GPA in school.
Another factor that impacts one's automobile insurance rates is the physical damage options one chooses when buying a policy. Physical damage coverage is the part of your policy that pays to repair or replace your automobile.
Physical damage coverage has two components. One is the collision coverage. This pays the cost to repair damage caused by many perils including automobile 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 car is the collateral for the loan or actually owned by the lessor, the lienholder has a right to expect that your automobile is always insured with adequate physical damage coverage.
You will not be able to eliminate the collision or comprehensive coverage if your car is leased or financed. 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 the amount of 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 automobile being stolen, vandalized or hit by another automobile are all affected by where you live.
Although few people will make a decision about where to live based only on their potential automobile 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.
Being aware of some of the factors that impact your auto insurance rate gives you more control. Most insurers give both teenage and old drivers discounts when you they do certain things. Reducing the non-essential parts of your coverage should be considered. Above all else, drive safely if you want to keep your insurance premiums as low as possible.
Get https://automobile-insurance-now.com /auto-quotes/index.htm automobile insurance quotes to cut your costs. You can find http://automobile-insurance-now.com/quotes/Alabama-auto-insurance-state-AL.htm Alabama car insurance quotes as well as other states on the author Alston J. Balkcom's site.
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