subject: Finding The Best Automobile Insurance Rates For Teens [print this page] There is a multitude of factors that can affect one's automobile insurance costs. How old you are matters, but so do other issues. If you are a teenage driver or are the parent of one, you will need to focus on the other areas to keep the cost of your insurance down.
Why do new drivers pay so much? It is simple. Automobile insurance companies have no driving history or a limited motor vehicle department record on which to base their rates.
Typically new drivers will have two opportunities to lower their insurance premiums that are not available to older drivers. They can get a ten percent discount with most companies 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 premiums 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 eliminate 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 car is financed or leased, the lienholder is likely to limit how much you can reduce the physical damage coverage on your automobile. Since your automobile is the collateral for the loan or actually owned by the lessor, the lienholder has a right to expect that the vehicle is always insured with adequate physical damage coverage.
You will not be able to cut out the collision or comprehensive coverage if your auto 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 auto you may not want to raise 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 car 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 car 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 auto insurance estimates before making a choice. The cost of homeowners insurance and medical insurance are also impacted by location.
Of all the things within your control that impact automobile insurance rates your driving history is the most important. Driving slowly and intelligently is the most important thing that you can do to keep your costs down.
There are many factors that impact your auto insurance costs. Your age is only one factor. Discounts are available to new 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 motor vehicle department record is crucial.
by: Alston Balkcom
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