In recent years car insurance has increased in cost by as much as 20% a year. These costs are due to a number of factors: more powerful cars, more congested roads leading to higher accidents, and greater numbers of uninsured drivers which forces insurance companies to raise the cost of premiums to cover themselves for the risk that these uninsured drivers pose.
One of the groups hit most severely by these raises have been young and newly qualified drivers, and young men in particular. Last summer, for the first time, the average cost of a third party insurance policy became more expensive than the average cost of a comprehensive policy for the first time, reflective of the fact that it’s cheaper for young drivers to get third party coverage.
That average cost for third party coverage was £1,300, and for a lot of newly qualified drivers it’s a lot more expensive than that.
Research conducted by Co-Operative car insurance recently found that hundreds of thousands of parents are willing to lie in order to save their children money. Through a practice known as ‘fronting’ parents name themselves as the main drivers, thus benefiting from reduced premiums even though their children are actually the ones driving the car.
A surprising 41% of parents revealed that they are currently fronting and 61% said they would consider it in the future.
These numbers are of great concern to the insurance industry, not least because it places them at greater risk should the child of a parent who has fronted be involved in an accident. The insurance industry argues that the cost of insurance policies accurately reflects the risk of young drivers, and if the young drivers are not paying those costs themselves, then the insurance companies are the ones losing out.
Fronting is, also, illegal. Some industry experts have compared it to stealing, but whilst this might be going slightly too far it is fraud. The repercussions can be serious, not only if the insurance company discovers that you have fronted a policy (because they won’t pay out if there’s an accident) but because you may find yourself incapable of getting insurance in the future.
At the end of the day everyone should do their best to find the cheapest deal they can, but the costs of insurance accurately reflect the risks that young drivers pose. So, if you do your research and look around you can find some great deals, but they’ll still be quite expensive when compared to a policy for an experienced driver. If you’re looking for a good deal on your car insurance take a look at some of the deals that Co-operative Insurance is offering at the moment.
Tags: Accidents, Co Operative Car Insurance, Fraud, Hundreds Of Thousands, Industry Experts, Insurance Companies, Insurance Company, Insurance Industry, Insurance Policies, Insurance Policy, Parents, Party Coverage, Powerful Cars, Premiums, Repercussions, Risk, Third Party Insurance, Uninsured Drivers, Young Drivers, Young MenRelated posts
Car insurance is an integral part of the insurance budget. There are a lot of variables that cause the rates to increase or decrease. Some of these variables cannot be controlled by the insured but there are some things the insurance buyer can do to keep their policy reasonable without losing a lot in protection.
What Are Your Assets? Do you own a home? Do you have several vehicles? Do you own a business? Do you rent an apartment? Your strength in assets is a factor when selecting your liability limits. If you accidentally injure or kill someone in an automobile accident and you carry low liability limits on your car policy then your assets are next in line to be used to pay for the damages.
The Age of the Vehicles Newer vehicles usually require physical damage coverage by the lender. Older vehicles with a lot of miles sometimes do not warrant physical damage. Physical damage rates can be adjusted up or down based on the deductible you choose.
The Age of The Drivers Adult rates, senior adult rates, and rates for young drivers make a huge difference in the overall rate. Young drivers on vehicles with physical damage coverage can be very costly.
What are the Discounts? There are a number of discounts on car policies. The multi-policy discount is given by insurance companies for purchasing both auto and home insurance. Retirement discounts are available to the senior adult. Young drivers receive discounts for drivers training education. Some companies give good student discounts for young student drivers that maintain a 3.0 grade point average.
Full Tort or Limited Tort Many states have a discount for selecting a limited tort option. Tort is your right to sue for pain and suffering damages over and above the basic liability settlement. This varies from state to state.
This is the overall picture what insurance companies use to determine your individual rate. You have a choice when it comes to liability, physical damage, and tort options. Ask plenty of questions about these three areas when purchasing car insurance.
Tags: Adult Rates, Auto And Home Insurance, Automobile Accident, Budget Car Insurance, Budget Insurance, Car Policies, Car Policy, Drivers Training, Insurance Budget, Insurance Buyer, Insurance Car, Insurance Companies, Liability Limits, Pain And Suffering, Physical Damage Coverage, Student Discounts, Student Drivers, Tort, Training Education, Young DriversRelated posts
Free Online Car Insurance Quote Make It Easy By Being Prepared
You can shop all day and night online for car insurance or you can be prepared and save time. Online car insurance quotes are as complete and accurate as the information that you provide. The best way to shop online is by giving the insurance company the detailed info that they need to give you the best possible rate.
The Vehicle Identification Number You must enter this number online to receive the proper rate. The Vehicle identification number on a vehicle will indicate the safety features on your automobile and that will give you discounts. Air bags, seat belts, and anti-lock breaks are valuable discounts. Rates are higher without these discounts. Have your vehicle identification number available.
Drivers License Number You are going to have your driving record investigated sooner or later and so you might as well get it done at the beginning so that you will have an accurate rate based on your driving record.
Prior Insurance If you are comparison shopping then you will need to have your prior insurance policy available. Prior insurance discounts are huge but you have to prove that you have a policy by entering your present insurance company effective date and policy number.
Usage it is important that you have a good understanding on how you use your vehicles. How far one way to work? Is your car used for pleasure? How many miles per year do you drive on each vehicle?
Discount Tips Insurance companies will give discounts for a variety of reasons. There are retirement discounts for seniors. Young drivers receive discounts for drivers training education as well as good student discounts by some companies. Multi-policy discounts when both auto and home insurance are with the same company.
Online shopping is so much easier when you have all this information available. Be prepared and you will save valuable time and money.
Tags: Accurate Rate, Air Bags, Auto And Home Insurance, Car Insurance Quotes, Drivers License, Drivers Training, Effective Date, Good Understanding, Insurance Companies, Insurance Discounts, Insurance Policy, Policy Discounts, Present Insurance Company, Prior Insurance, Safety Features, Seat Belts, Student Discounts, Training Education, Vehicle Identification Number, Young DriversRelated posts
If you are considering buying a car for the first time, you might not know where to begin. Making such a major purchase is most likely the first step in your financial life, so it is very important to take it seriously.
That’s the word from the experts at a national consumer education campaign called AWARE (Americans Well-informed on Automobile Retailing Economics).
To help first-time auto buyers navigate the financing system, it has put together this pop quiz:
• Do you have a budget? If you don’t already have one, create one. It will help you determine how much car you can afford. Don’t forget vehicle-related costs outside of a new car payment, particularly insurance costs. Premiums for many young drivers can be as much as the monthly car payment. Don’t forget to include maintenance, gas and taxes.
• Have you pulled your credit report? Your credit history may affect your finance rate, so it’s a good idea to get a copy of your free credit report before heading to the dealer. Go to www.annualcredit report.com for yours.
• Have you shopped around? Do some homework before you decide which car to buy and where to buy it. Call your bank or credit union. Talk to dealerships. Print out all quotes and keep them in a folder that you bring with you when you shop for the car. Whether you finance through your dealer or elsewhere, there are typically no penalties to refinance if you’re not satisfied.
• Do you know how finance rates are determined? Vehicle financers use a number of factors to determine the finance rate they will offer you, including your credit score, the price of the vehicle you would like to purchase, manufacturer incentives, the amount of your down payment, your debt repayment options and the length of the finance contract. The rate offered to you may be negotiable.
• Is there someone you could ask to be a co-signer if needed? If you are under the age of 18, are currently not employed, do not have a credit history or your credit history is not good, you may need a responsible person to co-sign the finance contract for you.
• Do you know the difference between leasing and financing? Know what an APR is? Credit insurance? Guaranteed Auto Protection? You need to educate yourself on these terms and understand the value and price of aftermarket products. If you don’t want something, don’t sign for it.
According to Eric Hoffman of AWARE, if you answered “no” to one or more questions, go back and hit the books before you buy a car or truck. Said Hoffman, “Consumers, especially those at the beginning of their financial lives, need to be vigilant about understanding the vehicle-financing process. If you make mistakes along the way, they can follow you for years.”
Tags: Americans Well Informed On Automobile Retailing Economics, Auto Buyers, Automobile Retailing Economics, Car Payment, Co Signer, Consumer Education Campaign, Credit Score, Debt Repayment, Finance Contract, Finance Rate, Finance Rates, First Time Car Buyers, Free Credit Report, Insurance Costs, Insurance Premiums, National Consumer Education, Pop Quiz, Repayment Options, Time Car, Young DriversRelated posts
Very Cheap Car Insurance – It Exists But You Have To Know What To Ask For
When someone tells you that they have very cheap car insurance then you need to be cautious. What kind of insurance profile does that individual have that would give them the benefit of very cheap car insurance? People will often complain about their car insurance rates to a friend or neighbor and too often that neighbor or friend will claim that their insurance is much cheaper. That may be true for a number of reasons. We dont all drive the same cars. We dont have the same driving records. We have different ages of drivers. There are a whole lot of variables in the criteria that make up the car insurance rate.
Rating Criteria
Credit Reports Most of the insurance companies use credit as part of the equation when setting rates. Some people do not understand the relationship. Actuaries have come up with the statistics that prove credit to be a significant rating factor. There is a stability factor and relationship to accident frequency that coincides with the credit history.
Vehicle Types This can be kind of tricky. Some newer vehicles actually have better rates than the older vehicles because of all the safety features. Some vehicles have high theft rates. Make sure that you get the vehicle identification number of any new vehicle purchase and give it to your insurance company to obtain your new rate.
Rating Territory You are stuck with this one unless you move to another geographical area.
Driver Info The driving records and ages of your drivers will play a significant part in your rate.
Discounts There are several ways to discount your car insurance. Purchase the home policy with the auto policy to get a multi-policy discount. Good student and drivers training discounts are available to young drivers with some companies. Retirement discounts and discounts for taking a mature driving course are available for senior citizens.
The cheaper rate is really up to you. Do your home work and ask your insurance company a lot of questions.
Tags: Actuaries, Auto Policy, Car Insurance Rate, Car Insurance Rates, Cheap Car Insurance, Credit History, Credit Reports, Drivers Training, Geographical Area, Insurance Companies, Insurance Company, Insurance Purchase, Neighbor, Rate Discounts, Senior Citizens, Several Ways, Stability Factor, Vehicle Identification Number, Whole Lot, Young DriversRelated posts
Free Online Car Insurance Quote Make It Easy By Being Prepared
You can shop all day and night online for car insurance or you can be prepared and save time. Online car insurance quotes are as complete and accurate as the information that you provide. The best way to shop online is by giving the insurance company the detailed info that they need to give you the best possible rate.
The Vehicle Identification Number You must enter this number online to receive the proper rate. The Vehicle identification number on a vehicle will indicate the safety features on your automobile and that will give you discounts. Air bags, seat belts, and anti-lock breaks are valuable discounts. Rates are higher without these discounts. Have your vehicle identification number available.
Drivers License Number You are going to have your driving record investigated sooner or later and so you might as well get it done at the beginning so that you will have an accurate rate based on your driving record.
Prior Insurance If you are comparison shopping then you will need to have your prior insurance policy available. Prior insurance discounts are huge but you have to prove that you have a policy by entering your present insurance company effective date and policy number.
Usage it is important that you have a good understanding on how you use your vehicles. How far one way to work? Is your car used for pleasure? How many miles per year do you drive on each vehicle?
Discount Tips Insurance companies will give discounts for a variety of reasons. There are retirement discounts for seniors. Young drivers receive discounts for drivers training education as well as good student discounts by some companies. Multi-policy discounts when both auto and home insurance are with the same company.
Online shopping is so much easier when you have all this information available. Be prepared and you will save valuable time and money.
Tags: Accurate Rate, Air Bags, Auto And Home Insurance, Car Insurance Quotes, Drivers License, Drivers Training, Effective Date, Good Understanding, Insurance Companies, Insurance Discounts, Insurance Policy, Policy Discounts, Present Insurance Company, Prior Insurance, Safety Features, Seat Belts, Student Discounts, Training Education, Vehicle Identification Number, Young DriversRelated posts
Cheap Car Insurance For Teens How To Keep The Rates Down
The teenager shopping for car insurance is at a decided disadvantage. Car insurance rates are based on age and driving experience as well as driving record. The best way for teenage drivers to work their way into better rates is stay on their parents policy in order to gain driving experience and a driving record. There is a good chance that after three years and a clean driving record that a preferred policy from the parents insurance company can then be issued on the teen drivers that want to have their own car and pay for their own insurance. There are numerous discounts for the young driver today. Drivers training education is the most common discount. The drivers training course normally consist of 30 hours of driving with an authorized instructor along with 6 hours of classroom work. Some companies give discounts for good students that carry a 3.0 grade point average in high school or college. There is also a resident student discount available by some insurance companies. The student has to live over 100 miles away from home to receive this discount.
Age Rating Tiers Most insurance companies have age rating tiers on young drivers. The ages from 16 to 21 is one tier and the rates are the highest in this time period. The next age tier begins at age 21 and ends at age 25. The rates drop significantly at age 21 and again at age 25.
Vehicles Make a Difference The younger the driver the higher the rate. The rates are very high for young drivers on newer vehicles that require collision and comprehensive coverage. Older vehicles that only require liability coverage as a minimum state requirement is one way to cut costs for the teen driver. Utility vehicles like pick-up trucks receive a small discount and the teen driver can take advantage of that discount also. The teen driver needs to stay away from high performance vehicles and sports cars because the rates will be very high and these cars may not qualify for standard car insurance.
Tags: Car Insurance Rates, Cheap Car Insurance, Classroom Work, Drivers Training, Driving Experience, Grade Point Average, Insurance Companies, Insurance Company, Liability Coverage, Miles Away From Home, Own Car, Own Insurance, Performance Vehicles, Preferred Policy, Sports Cars, Teen Driver, Teen Drivers, Teenage Drivers, Training Education, Young Drivers