Finding Low Cost Auto Insurance for Teenage Drivers
Reader's Question:
My son graduated from high school with honors. He is now preparing for college. He does not know it yet, but I am planning to give him his own car as a send-off gift. But I guess the cost auto insurance for teenage drivers can be a little bit of a problem. Can anyone here help me in finding low cost auto insurance for teenagers?
Gale
Des Moines, IA
Finding low cost auto insurance for your teenage son is not just going to be a little bit of a problem. It is going to be a big problem, especially if you are on a tight budget. Auto insurance for teenage drivers fall under those that cost very expensively. I believe that next to auto insurance policies that cater to those people caught for drunk driving, auto insurance for teenagers are the most expensive. The reason behind this is the evidence of teenage drivers' recklessness shown by the studies on vehicular accidents done annually. Furthermore, the fact that your kid is not female means that there is already one discount to which you are not going to be eligible, and that is the female driver discount.
However, you should not rush into things and be trapped into buying low cost auto insurance which would not really be able to fully protect your son. You should not settle with some low cost auto insurance policy that does not really have much coverage.
What you should just do is try to lower the cost of a reasonably priced (which, of course, depends on your financial capacity) auto insurance policy by availing of discounts available. There are discounts available for teenagers with profiles such as your son's. Having been a very good student in high school is sure to get him good student discounts. It also helps to have a clean driving record supported by some driving courses. You might also want to consider buying an older car that is less expensive to repair when damaged.
I think that it would help if you contact an auto insurance broker. A broker shall be able to answer your questions in full detail.
Switching to Low Cost Auto Insurance
Reader's Question:
Where can I get a low cost auto insurance? I have an existing auto insurance policy, but I feel that I am paying for too much for something I can get for a lower price somewhere else. If I can find a low cost auto insurance, can I change companies midway?
James
Atlanta, GA
James, there are lots of services that are available to you online. All you need to do is to search and make comparisons. Apart from the information that your current auto insurer has, you also need to provide other details of your driving history such as vehicle identification numbers (VIN), driver's license number and Social Security to the other insurer that you're thinking of getting the policy from. You will also need to provide answers about your vehicle, drivers of your vehicle, violations and incidents, discounts, the coverage you want for your vehicle and address setup, including garaging address.
And, yes, James, you can change auto insurance providers midway. Some companies even give you a discount for choosing their services. You need to provide the current coverage plan, and they will top it with a better deal. Companies reward people for staying with them and for being loyal customers, but they are not beyond giving out better deals for those who transfer with them.
You are right in assuming that there are providers who can give a better price with the coverage you choose. Auto insurance prices fluctuate over time. In fact, the average auto insurance prices for Georgia is decreasing in the past years, so different companies are vying to get your business. Really, competition is never this sweet.
Tips for Low Cost Auto Insurance
Reader's Question:
I'm trying to figure out ways of saving on auto insurance. Would you have tips that you can share with me, so that I can get a low cost auto insurance?
Charlie
Buffalo, NY
With the recession going on, a lot of consumers are looking for ways to save money and cut down costs. With auto insurance, however, we all need to be careful that saving a few dollars here and there will not affect the amount of coverage that we buy. After all, it will most likely cost more than the few dollars you saved if you get into an accident that costs more than your insurance coverage.
Here are some tips to get low cost auto insurance without sacrificing your peace of mind:
- Get a yearly policy - sign up for a yearly policy with your auto insurance provider, and you may be eligible for discounts.
- Increase your deductibles on comprehensive or collision insurance - By increasing your deductibles, you get low cost auto insurance because you are telling the insurance company that you are willing to increase your share in the bill if you do need to file a claim on your insurance.
- Check your miles - If you know how many miles you drive to work each day, this can also help you get low cost auto insurance. Different mileage classes may mean significant differences in auto insurance prices.
- Sign up your vehicles with one auto insurance provider - If you have more than one vehicle, you can get low cost auto insurance by using just one insurance company for them all. You may also want to try combining your auto and home insurance. Just make sure you sign up with an insurance company with good financial ratings.
Hope all my tips help. If still in doubt, check out more online resources that can help you find out more about low cost auto insurance.
The Pros and Cons of Low Cost Auto Insurance
Reader's Question:
Is it a good idea to purchase low cost auto insurance?
Mark
Milwaukee, WI
One clear advantage that low cost auto insurance has is its price and availability. With the economy being what it is today, more and more drivers are finding it difficult to afford full or even high coverage. Auto insurance companies have also adapted to the times by offering more low cost auto insurance packages for the common working man or woman who just wants to be able to drive around without having to worry about getting penalized for not being insured.
Low cost auto insurance, however, usually means low coverage. Most policies that fall under this label commonly offer only the minimum requirements set by the state's financial accountability laws. But it can sometimes happen that following an accident, repair costs and medical expenses exceed an insured driver's coverage limits. In such an instance, the driver, despite having auto insurance, still ends up drawing from his own pocket just to cover the excess cost. Once declared liable by the courts, a driver is under legal obligation to recompense the injured party whether he can pay or not. That is why most state insurance regulators advise motorists or any other consumer looking to buy insurance to purchase as much auto insurance coverage as they can afford.
It is really a matter of striking a balance between what your budget can accommodate and what your needs are. Figure out how much auto insurance coverage you really need, then match that with how much auto insurance coverage you can really afford.