High Risk Car Insurance
High risk car insurance is a real drag on the wallet and it's all about a driving record and other factors over which the driver may or may not have any control. It's about powerful cars in the hands of young people and seniors that have had few too many fender benders. It's about living in a big city instead of living in the country where the cows roam. And it is about the personal history of auto coverage for the driver over the past few years preceding the need for the high risk car insurance. Fair or not, the higher price of coverage is all about actuarial figures which study the risk and probability of events.
A person doesn't get stuck with this more expensive kind of coverage on just the whim of an insurance carrier. They have the desire to make a profit and keep customers but those are the order of priorities, and profit comes first. So the companies providing auto coverage do the thing that is anathema to politicians and others who might scream bloody murder in any other circumstance. It's called profiling and everyone who has ever been stopped by a roadblock and been given the hard look by law enforcement has been profiled and everyone who has been part of the Nielson ratings study has been profiled. It means that a person has either been compared to a profile, or been arrested or employed because he has fit a certain profile. And as much as we might despise it, the high risk car insurance company could not survive without the marginalizing of demographic groups.
Teens are a higher risk than adults because of their lack of driving experience and males are a higher risk than females according to the accident reports and traffic violations that are recorded each year. The problem with this is that we all have anecdotal proof that this isn't right but the actuarial charts have the statistics. Here's another hard pill to swallow: a bad credit history will pump helium in auto coverage rates. The thinking, fair or unfair, is that carelessness with credit spills over into how one approaches driving. But then again, bad credit can also keep someone from renting an apartment, let alone buy a house so it isn't just the high risk car insurance company. Be very careful not to fall for the subtle philosophy that says all creation on the earth is the same and deserving of the same consideration. The great value of mankind is set forth in scripture: "..."What is man, that thou art mindful of him? or the son of man, that thou visitest him? Thou madest him a little lower than the angels; thou crownedst him with glory and honor and did set him over the works of thy hands." (Hebrews 2: 6b, 7)
If a person lives in an urban setting where people are basically living almost on top of one another and the streets are crowded from city limit to city limit, there is more of a chance for accidents to occur than for Farmer Jones who lives on a back road just north of Nowheresville. One will pay more for the joys of driving in the city than country and one will pay more for the type of car one owns and drives. If a high risk car insurance company has tagged a driver of a beautiful new Porsche with higher rates, sell that thing and get an 83 Hoopty. Rates will go down guaranteed. But if the Hoopty idea isn't real exciting, there are also other things to do to get those costs down.
Oftentimes the reason the high risk car insurance company zaps a person with a high cost policy is because of a DUI or DWI. Check to see if taking a driver's education course or another alcohol related defensive driving course might help in lowering costs. While this may not quickly lower premiums, the class completion may bring about a gradual reduction over the course of a year or more. Getting a vehicle with seatbelt and airbags might help but then that Hoopty may not have those. It's a pickle all right.
Some large insurance companies have recently experimented with monitoring a customer's actual driving habits through the use of electronic tracking using newer auto's onboard diagnostic electronics. This has some real possibilities because then the driver is billed each month for the driving already completed. Factors such as mileage, speed and times of day for motoring are all figured into the cost. Of course this has not become a widespread practice as of yet and worries about Big Brother's nose in personal business have cropped up in the discussion of this particular method, but for some drivers this option offered by a high risk car insurance company may be palatable. The last option is probably the one most drivers will first consider.
When faced with a sudden increase in coverage premiums because of the move to a big city or the purchase of a pocket rocket auto or a DUI or some other abrupt occurrence, there is one quick solution. The driver must lower all of the coverage to the bare minimum. One of the biggest costs a high risk car insurance company has is the comprehensive and collision claims. Removing those could drastically reduce a high risk premium, but if one's car gets T boned, or a fender dinged or any other mishap, or if that tornado takes the car four miles away and is totaled, there is no coverage for repair. Lowering the liability to state minimums will also bring down the cost, but you are the cause of an accident and cause grievous bodily harm to someone else, all your property could suddenly become theirs.
Teen Auto InsuranceParents should look into teen auto insurance before a child acquires a license. The average teenager looks to the day they receive a driver's license with great anticipation. Necessary pieces of plastic have great power in imbuing those who hold them with a great sense of freedom and independence. However, young drivers need to realize that new found freedoms come with a certain level of responsibility, and every time they get behind the wheel they enter into a situation that could result in serious injury or worse to themselves and others. Despite a young person's excitement at the new found freedom, parents might not share in the enthusiasm due to increased risk and the higher costs. Despite the the high rates associated with young drivers, there are methods that can be used to reduce the costs while still providing the necessary coverage.
Due to the high risk of accidents among young driver, teen auto insurance is among the most expensive. Rates usually decrease as a driver gets older, however there are a lot of factors to consider as well, such as driving history regarding accidents, speeding tickets and so on. Experts say that the key to finding the best rates is to shop around. The process of comparing prices a necessary process to go through in order to ensure that a person is able to obtain the best deal possible. Studies have shown that drivers under the age of twenty-five are more likely to be involved in automobile accidents due to lack of experience on the road. Prices vary between companies, however, premiums exceeding upwards of fifty percent are common. The high costs of insurance lead many parents to search for way they can save money while at the same time providing the necessary coverage for children of driving age.
Money can be saved on teen auto insurance when parents simply add a young driver on their preexisting plan versus setting up an entirely new one for their child. This is an ideal method for parents who have good driving history as a significant way to save some cash. However, several considerations should go into the decision for the best plan as all depend in individual circumstances. For example, a couple who drives expensive cars could end up saving more in the long run if they do open up a separate plan for their child, or of the parents have a bad driving history. Every company is different, most do not offer discounted teen auto insurance until the driver is at least twenty-five years of age. Twenty-five is the official age that insurance companies view as entering adulthood. Some companies offer discounts for drivers who are twenty-three, and most offer lower rates for those who marry even if they are younger than twenty-five.
Many factors are involved in determining the rate of teen auto insurance, and there are a few options that could end up saving parents a lot of money. Despite a parent's desire to please their child, the purchase of a sports car could potentially cost a lot of money to insure. Rather, a dependable used car would cost less and would allow for cheaper rates due to the fact that an insurance company would not view the vehicle as much risk as a flashy sports car. Used cars are less likely to get broken into than flashy vehicles which attract attention. Most often when a family adds a young driver the insurance companies will assess the teen auto insurance rates based on a car assigned for the teenager. Parents can choose to save a little if the specify their cheapest automobile as the one which while be chiefly driven by the young driver. However, this could lead to problems if teenager has an accident while driving a car other than the one assigned to them in the insurance agreement. If an accident occurs while the driver is behind the wheel of a more expensive vehicle that is not licensed under their name, the parent's rates are subject to penalty and dramatic rise in cost.
Most insurance companies offer discounts on teen auto insurance in return for proof that the child is receiving good grades in school. Studies have been conducted that show those students who spend time studying and are self motivated are better drivers. Driver's education classes are required for young drivers under the age of eighteen; however, an eighteen year old can choose to forgo the classes. This is not necessarily recommended, especially for those who desire to lower insurance rates. Most company's look favorably on the completion of a driver's education course and discounts can range up to fifteen percent. There are insurance companies which even offer save driving courses which can be taken where a young driver promises to abstain from drinking alcohol when they are going to be behind the wheel. Despite the fact that there are several ways to keep costs down, parents should expect to have to pay higher rates until their child leaves for college.
Young drivers might view a driver's license as a ticket to freedom, however they must also be aware of how much responsibility comes with operating a motor vehicle. Parents of teenage drivers should be certain to take precautionary measures and purchase teen auto insurance before allowing there child on the road. All drivers should exercise caution behind the wheel, however, experience is what brings wisdom, for "wisdom is the principal thing" (Proverbs 4:7). Parents must be prepared to pay higher rates until their teenager enters adulthood.