Lowering Car Insurance for Young Drivers

5 Easy Steps to Reduce Your Car Insurance

If you want to save money when you purchase your car insurance, particularly as a young driver, here is a simple 5 step plan that works every time. You can save money online rather than ploughing through the Yellow Pages.

STEP 1 - Choose the right cover 
Take Third Party Cover only. Assuming you are like most new drivers, your first car is usually a cheap one. If it is worth up to a few hundred pounds, or even up to £1000, then consider getting the very basic level of cover - Third Party Cover only. If you think that is too risky, and you feel your car is worth more, then go for Third Party Fire & Theft Cover. You will still save a lot over Fully Comprehensive Cover and you will still be covered for most non-fault claims.

STEP 2 - Lower your chosen cover still further
All of the following can bring your chosen level of cover down even more - Get a cheap Group 1 or Group 2 rated car, make a point of your low mileage (if your car is only for local journeys), consider fitting an alarm / immobiliser (if your car doesn't have one), keep your car off-road or garaged overnight, don't have cover you don't really need like a courtesy car (it all gets added to your premium), increase your excess, take the Pass Plus test if you are newly qualified, take an advanced driving test, put an experienced named driver on your policy, don't pay by direct debit (use a low rate credit card).

STEP 3- Get at least 5 targeted online
You simply must put aside about an hour to complete a few online quote forms. It may sound like a bind, but if we can show you which companies to contact, brokers are the best place to start, then you could be saving £200 - £500 for 1 hour's work!

STEP 4 - Check the results

If you want to take a crack at further reducing these quotes then do the following. Take the three cheapest quotesfrom the above listed price comparison / broker sites, and then go to each individual insurers web site. You then request one separate quote from each of these three companies. You do this because it is not uncommon for a Direct Insurer to look at your young driver car insurance quote and lower it even further.

STEP 5 - Contact your current insurer

Once you have secured your definitive lowest quote it is time to contact your current provider. You then give your current insurer the opportunity to beat your best quote. 

Student Car Insurance

Choose the right policy cover

Do you really need Fully Comprehensive insurance? If your car is worth several thousand pound then the answer is probably yes. If you have a cheap runabout, it may not be necessary and basic Third Party cover may well be enough.

Voluntary excess

If you agree to accept a higher voluntary excess (the amount you agree to pay in the event of an accident), the lower your premium is likely to be. Just make sure you can afford to pay the amount should the worst happen.

Avoid modifying your car

Try not to modify your car as will directly affect the rates you will be quoted. For example by adding alloy wheels to a car, that were not standard at manufacture, you could alter the insurance group rating applied to your particular vehicle. The insurers work with the manufacturers so that a particular model of car can be insured to a standard. If you modify your car and don't tell your insurer then you risk not getting paid out if you need to claim.

Make your car more secure

Get a professionally fitted alarm serves two purposes - Thieves will probably not attempt to steal your car in the first place and insurers sometimes offer additional discounts. Always remove any valuables from your car, or hide them away if you have to leave them in the vehicle.

Be truthful 
Make sure your application is true to the best of your knowledge. You enter into a contract with an insurer in good faith. If you lie, then need to make a claim, an insurer can refuse to pay out on the policy. Once you have insured your car you must then inform any changes in your circumstances, that may affect your policy, to your covering insurance company. This would include -

• car modifications
• moving house
• points on your driving license
• other people using your car

Avoid sports cars

If you are student then chances are you're well under 25. After 25 your premiums will start to come down significantly. Until then, you don't want to take your premiums even higher buy owning a sports car. Most small super minis fall into the lower insurance groups - 1 to 4, and most family cars in the 5 - 11 group. Get a car with a small engine that is cheap to run and your car insurance will be more manageable.

Be a careful driver

Being a considerate and careful driver, with a good attitude to other motorists, is the best way to avoiding accidents. You will build up a good history of no claims bonuses and gradually lower your premiums each year. 

Car InsuranceNews

Smashing times ahead

According to Lloyds TSB Autolease, one of the UK’s leading contract hire and leasing companies, October and November sees a big increase in replacement glass bills to their vehicles.

It is brought about by the onset of Winter and changes to GMT from British Summertime. As the nights draw in more quickly, this provides even greater opportunities for thieves to increase break-ins to susceptible vehicles.

We all know the dangers of leaving items on show in cars, that attract the would-be thief, but dimly lit car parks also provide a haven for car crime to soar.
Lloyds figures show:

•   Replacement body glass up 55% in October/November

Driving during the Winter brings its own hazards. Darker nights mean headlights should always be on, and a reduction in speed is a must when frost has been forecast.

Failure to plan your journey and to anticipate the prevailing road conditions is one of the biggest reasons for car insurance claims in the Winter months ahead.

The answer reducing these increased risks is fairly simple, slow down and park your car in well lit areas. This will also avoid you making extra claims on your car insurance and pushing up premiums.

Guide for learners and young drivers

Limit your mileage

If you have a low annual mileage then you may qualify for a discount. Do not be tempted to deliberately underestimate your mileage though.

Just passed your test?
If you have recently passed your driving test, look at whether it would be cost-effective to complete the Pass Plus training programme to qualify for car insurance discounts. 
Size matters...
A car with a smaller engine usually means you'll get a cheaper quote. Also, don't modify it either by adding alloy wheels or a big exhaust to improve performance.

Guide for learners and young drivers

Increase your excess

Consider increasing your voluntary excess payments on your car insurance policy. You can add as much excess as you like but please bear in mind that you should make sure you can afford to pay the car insurance excess should the worst happen

Upgrade your alarm
By installing a category grade 2 or three Thatcham alarm, some car insurance companies give up to a 10% reduction in their premiums.
Can you park your car off road or in a garage?
By parking your car in a garage you could vastly reduce the chances of it being damaged or stolen. You could also get a lower car insurance quote and this could help reduce the premium by around 5%.

Is Third Party car insurance all you need?

If you have a really cheap car, not really worth that much, consider Third Party car insurance cover as it's generally the cheapest. You could get quotes on all three car insurance cover options for private use.

Get at least three car insurance quotes - from online

Why? Well it will save you time and money - up to £800 per year. Online car insurance companies that can offer you immediate quotes are geared up for one thing only - getting you the cheapest car insurance rate possible. Many car insurance companies also give a further 10% off their rates for buying online.

Target the right car insurance company for learner drivers
Don't waste your time getting just any online car insurance company to quote. A large proportion of car insurance companies don't want to take on learner drivers or young drivers because of the increased risk. Here are some of the statistics for new and young drivers

• Over 30% of all young male drivers will write off a car in their first year of driving (it is less than 15% for young women drivers that are likely to do the same).

• Under 20 year olds make up just 3% of all drivers but 25% are convicted for crimes of causing death by dangerous driving.

• 25% of drivers under 21 who have an accident are shown to have lost control of their vehicle. 
Build your own no-claims bonus from day one
As soon as you start paying for your own car insurance policy, in your own name, you will be saving on your car insurance over the long term. It may seem as though you have enough expenses, what with buying your car to start with, but some car insurance policies can start you off with a 30%+ no claims car insurance bonus.
Add an experienced driver to you car insurance quote
It can pay to add an experienced additional driver to your car insurance quote. There are number of companies who give up to an additional 5% discount off their car insurance online quotes. It is certainly worth adding a more mature driver to your policy if you can.

Learner Driver Guide to Reduce your Insurance Premiums

Guide for learners and young drivers

First of all - decide on what cover you need

Do you need fully comprehensive car insurance, third party fire and theft car insurance or third party car insurance? Check here for a full explanation 

Fully Comprehensive car insurance 

Fully Comprehensive Insurance covers you for everything Third Party fire and Theft does, but in addition you will normally be covered for loss or damage to personal effects, accidental damage and medical expenses too. On top of this there could also be optional extras you can take out like breakdown cover or legal expense cover, for example. Although not essential, they do give the policy holder extra protection and peace of mind against many common motoring occurrences.
Fully Comprehensive Insurance covers you for everything Third Party fire and Theft does, but in addition you will normally be covered for loss or damage to personal effects, accidental damage and medical expenses too. On top of this there could also be optional extras you can take out like breakdown cover or legal expense cover, for example. Although not essential, they do give the policy holder extra protection and peace of mind against many common motoring occurrences.
Once you have decided on which type of insurance to buy, you next need to consider the finer details of the policy. Each insurer will offer you these three basic types of insurance, but when you come to purchase one there will be optional extras that you can have which may affect the premium
Once you have decided on which type of insurance to buy, you next need to consider the finer details of the policy. Each insurer will offer you these three basic types of insurance, but when you come to purchase one there will be optional extras that you can have which may affect the premium
What is Third Party Fire & Theft Insurance

• Liability for injuries to other people, including passengers

• Liability for damage to other people΄s property

• Liability of passengers for accidents caused by them

• Liability arising from the use of a caravan or trailer, while attached to the car

• Liability protection added to cover losses in the event of fire or theft of your vehicle

What is 'Third Party Only' Car Insurance Cover?
In other words, if you run into another car and cause damage to that car and injure the occupant(s) of that car, a Third Party Only policy will pay for the repair to that other vehicle, and will pay for any medical claims or injuries suffered by the occupant(s) of that other car and any passengers in your car other than you.

A Third Party Only policy will not pay for the costs of repairing your own vehicle nor will it pay anything toward your medical expenses if you are injured.
In other words, if you run into another car and cause damage to that car and injure the occupant(s) of that car, a Third Party Only policy will pay for the repair to that other vehicle, and will pay for any medical claims or injuries suffered by the occupant(s) of that other car and any passengers in your car other than you.
A Third Party Only policy will not pay for the costs of repairing your own vehicle nor will it pay anything toward your medical expenses if you are injured.
A Third Party Only policy will not pay for the costs of repairing your own vehicle nor will it pay anything toward your medical expenses if you are injured.

This is the most expensive of the three types of Car Insurance. It is also the insurance with the most features and the broadest spectrum of cover. A Fully Comprehensive Policy not only insures you against damage to your car but also meets any cost of repairing damage to other vehicles, regardless of who was at fault. 
For example, optional legal expense cover on Fully Comprehensive Insurance will pay any legal expense that arises from colliding with an un-insured car, although there is normally an upper limit you are not allowed to exceed in situations like this. Always read the small print carefully as these upper limits will be quoted in there, and being familiar with limits and exclusions in your insurance policy can save you any nasty surprises later. 
This type of cover usually includes:
Choose the right cover according to the value of your car and what risk you are prepared to take in terms of financial loss. If you are unsure seek the advice of an insurance company direct.
This covers the policyholder against damage to a third party's property or to the third party themselves. 
In addition, if your vehicle is stolen or catches fire, a Third Party Only policy will not make any payment toward the theft or repair of the vehicle.
Do you only need third party cover  - if so you could save a lot of money. This is also more likely to be suited to older vehicles with low residual value.

Examining Jet Ski Insurance

Jet skis are the perfect watercraft to get out on in the sun and surf while enjoying the fun of zipping around on the water. However, these are also items which need to be properly and fully insured. They are expensive items and you want to make sure that yours is properly covered each and every time you take it into the water. In addition, jet ski insurance will also cover your craft when it is on dry land, such as during the off season when it is too cold to go in the water.

Why You Need Insurance

There are a few reasons why you need insurance. First, jet skiers can get into accidents just like any other motorized vehicle. When you have insurance coverage, you will know that your jet ski can be repaired should it be involved in an accident. Another reason to obtain insurance for your jet is so it will be protected in the event of theft or fire. Should either of these occurrences become an issue, your insurance policy will cover your machine and provide a replacement for your motorized watercraft. Lastly, if you have to repair your jet ski and don't have insurance coverage in place you may find yourself lacking the money to do so. When you have insurance in place you can easily repair your watercraft when need be.

How Much Will it Cost?

If you are pondering how much jet ski coverage will cost, fear not, as the prices are quite reasonable. The cost of the policy premiums will vary from insurance provider to insurance provider and depend on the exact type of coverage which you obtain. For many, a policy insurance may only cost a couple hundred dollars each year which is a great deal, especially when you break it down into monthly payments. In order to get the best deal on this type of insurance policy, shop around, review your options and then choose the one policy which offers the most coverage for the least amount of money.

Introduction To Jet Ski Insurance

If you own a jet ski or planning to buy a jet ski then I am sure you do not need an elaborate instruction on how to have fun with your very own jet ski. However you will need an elaborate explanation about the less fun part of owning a ski. If you are still wondering what it might actually be then allow me to introduce you into the whole new world of Jet Ski insurance.

Jet Ski insurance is a far more important matter compared to the time you will actually be spending riding your water craft. If you do not get this right then it might suck all the joyful times you are about have with your vehicle. The reason for this very simple, if you have observed the coast where the boats and skis are anchored, you will realize one thing immediately, the number of water craft has increased. This means increased amount of traffic near the coast and increased chances of accidents. Ski is perhaps the most frequent water craft that has been involved in a large number of accidents in the last few years. This is mainly because the Ski is a fast vehicle and for beginners it is very difficult to control it if they come across any obstacle leading to inevitable collision with a boat or other ski. In order to protect yourself and also your investment you need to buy a good insurance policy.

Jet Ski insurance is slightly different from any other water craft insurance. Basically there are two insurance policies for this water craft. The first one is the comprehensive Jet Ski insurance policy, it provides financial coverage against accidents, damage due to vandalism, damage due to fire and also covers your water craft against theft. This is the basic form of insurance policy that you need to purchase before taking it to the water. The second type of insurance policy is known as the third party liability policy. This basically protects you by covering the financial expenses if you were to cause injury or damage to other's property. This is very much needed if you intend to rent your ski.

Unlike other water craft insurance policies the Jet Ski insurance policy comes with a higher premium rate. In order to decrease your quote you need to follow some basic rules, such as keeping your vehicle in a protected environment like in a garage when not in use. This will allow you to get your policy at a very low quote especially when you apply for theft insurance policy.

Car Insurance for Teens

Teen drivers present some special situations regarding the expense of their car insurance. The following tips will help clarify considerations for teen car insurance.

Drivers are accustomed to considering many of the criteria auto insurance companies use in determining insurance rates including the vehicle, the driver's driving record and how far the driver will be driving. Car insurance for teens is expensive because teens are new drivers and as a group they are statistically at more risk to have accidents, making the insurance company liable.

When you are considering what is necessary for a teen driver, the age of the teen is very important. For most teens under the age of 18 executing a valid contract is not possible. Car insurance coverage is a contract and therefore they will not be able to purchase their own car insurance. If you are the parent of a teen who has a learner's permit you must call your insurance company to find out whether your teen needs to be insured under your policy. Many states do not require separate insurance for teens under the age of 18 who are driving with a learner's permit.

There are certain situations where teens are permitted to execute valid contracts. Most notably, in the instance of an emancipated minor the teen will obtain adult privileges such as the right to contract. In this instance the teen will be able to purchase auto insurance.

If a teen is engaging in risky behavior you cannot use your parental authority to get the teen's license taken away. Once the teen is licensed even if you are paying for car insurance, the most you will be able to do is stop insurance coverage for the teen. This is not wise because if the teen decides to drive the teen will have the legal difficulties of being an uninsured driver. Instead, delay allowing your teen to obtain his driver's license until the teen is 18 and can legally obtain his own insurance.

If you have a child who is older whom you still want to carry on your insurance policy, you can usually do this as long as you own the car. It is more difficult to obtain a policy for someone when you don't own the car. If you want to help an older child pay for car insurance for a car that child owns, you can privately provide funds for car insurance.

As a person gets older and has more driving experience his rates normally will drop. In the meantime, parents whose policy covers their teens can use traditional ways to lower insurance costs. Some auto insurers provide discounts if teens obtain good grades which can help save you a few dollars.

Sometimes teen auto insurance expenses can be reduced by having the teen take a defensive driving class. These classes are not available in all areas as a means of reducing insurance rates, nor do all insurance companies reduce rates if you take such a course. Check with your insurance company to find out whether this option is available to you.

Part of the driving experience for everyone, including teens, is the process of getting auto insurance. Consider using the above tips to choose affordable car insurance coverage for teen drivers.

Article Source: http://EzineArticles.com/6748542

Pick Pay As You Go Auto Insurance Policies And Spend Less Cash On Your Coverage

There may be times when you find yourself in need of car insurance for just a single day, or maybe you need to drive for a week or two. There are many reasons why you may want this type of cover and in these circumstances it simply does not make sense to get a standard annual policy. An annual policy will usually cost you a large upfront fee so even though you can always cancel the annual policy when you no longer need it, you will already have paid a large sum of money up front. Even more relevant is if you need to drive for a day or two, but then not for a few weeks, then you need to drive again, then you don't need a car, and so on. Ongoing annual policies are a terrible waste of money if you have this type of pattern of irregular driving needs.

A motoring policy for a single day is ideal when you purchase a new vehicle. Instead of having to take the time to apply for an annual policy at the time of purchase you can get car insurance for a day in a matter of a few minutes. Temporary insurance is quick and easy to get and this makes it ideal for times when you spot the car of your dreams and you want to snap it up before anyone else does. You can put a quick basic policy in place, then sort out a longer term plan when you get home.

Another reason you may want to get car insurance that lasts a day or two is because you need to use someone else's vehicle and your insurance does not cover you. By purchasing temporary car insurance you will get the insurance you need without paying a lot for it.

There are times when someone needs to borrow your car or van. Perhaps you are temporarily unable to drive, or you have family coming to visit from out of town and they will need a vehicle to drive. This is a perfect time to get car insurance for a day. Your vehicle will then be properly covered in case of an accident.

Another group of people with irregular driving habits tend to be younger people living with parents. If you are not working full time and do not need a car for regular commuting, you may only need a car very occasionally. You could go weeks without needing to drive, but then want to do a lot of driving in a short space of time. A traditional policy would be a waste of money in this situation. The best option for ongoing irregular driving would be a pay as you go policy. This is where a tracking box is fitted to your vehicle and you are charged by the insurer based on the driving you actually do.

Since car insurance for a day is so quick and easy to get you will find that there are certain restrictions that apply to it. In most cases the insurance company will insist that you are at least 25 years old. Your licence will have to be clean too. In other words they do not want any violations or accidents on your licence. A clean licence is a sign that you are a safer driver and a lower risk to them. Many times they will also want you to have had a licence for a certain period of time.

The car insurance companies may also put restrictions on the type of vehicle you can insure. They will most likely not insure a car which has been modified. The vehicle may have to have a particular limit on the value, also.

Car insurance for a day is very useful in certain circumstances. You may find that getting this type of insurance is exactly what you need until you can get an annual policy in place.

Should You Pay Your Auto Insurance Monthly Or Annually?

Most auto insurers will give you the option to pay for coverage through monthly premiums rather than forcing you to make a single large, upfront payment. To decide which option is better, you'll need to carefully review the advantages versus the potential drawbacks in light of your personal circumstances. Depending on your financial situation, need for planning flexibility, and other factors, making the wrong choice can have long-term consequences.

This article will offer a road map for navigating your auto insurance payment schedule. We shall give you a glimpse into the advantages and disadvantages of monthly payments versus annual.

Pro: Easier On Your Monthly Budget

If you're like most people, you manage your finances with a monthly budget. Your income is offset by your bills; funds that are left over are allocated toward entertainment, investments, and other outflows. Under this budgeting system, making a large upfront payment for year-round coverage may prove unmanageable. This is especially so in today's economic climate.

Your monthly insurance payments will fit nicely in your budget. The payments represent an expected outflow that is already allocated in your financial plan.

Con: It's Inconvenient

Paying your auto insurance premiums on a monthly schedule increases the paperwork you'll be forced to manage. Not only will you need to open your statements and file them for future reference, but you'll also need to write a monthly check.

On the other hand, many auto insurance companies can help you establish an automatic payment plan. The funds are drafted directly from your checking account on a predefined schedule. That reduces your paperwork and eliminates the need to remember to write a check each month.

Pro: Provides More Liquidity

If funds are limited, there's value in having the option to hold onto your money for as long as possible. Monthly car insurance payments provide valuable liquidity. For example, suppose part of your monthly budget is allocated toward making a small investment into mutual funds. If you were forced to pay several hundreds of dollars upfront for an annual car insurance policy, you might lose the liquidity necessary to make your monthly investments.

Con: Includes Processing Fees

Most auto insurers will charge a small monthly fee to process your payments each month. These processing fees are typically small; it's not uncommon for them to be as low as a few dollars each month.

Over the course of a year, the fees can add up to $50 or more depending on your policy. While some financial planning experts suggest that paying such fees is an ill-advised way to spend money, it depends largely on your personal circumstances. If funds are unlimited, the experts are correct. This small fee may be worthwhile considering the liquidity this arrangement offers.

Pro: More Flexibility

Making monthly payments gives you far more flexibility to change car insurers than would be the case if you were to pay upfront. This is more important than many policyholders realize.

Auto insurers are constantly trying to gain market share. A key lever they use is lower premiums. This is one of the reasons you should periodically shop for a new policy. Even if you're satisfied with your current auto insurer, you might find a policy that offers more attractive terms. You might be able to get equal coverage for less money through a competitive auto insurance company. You also might discover that you can get greater insurance coverage for the same payments you are already making.

If you cancel your car insurance policy after paying upfront, you'll receive a pro-rated balance from your current insurer. The problem is, you'll need to wait for the check, which can take weeks. It might be necessary to make a deposit to your new insurance company, which might be troublesome while waiting for your previous refund. It's much simpler to cancel your coverage and switch providers when you're paying for your insurance coverage monthly.

Choosing The Right Payment Schedule

You are the only person who can decide whether paying for your auto insurance on a monthly schedule is appropriate for your situation. Review your monthly budget. Determine the value you place on liquidity. And consider the importance of being able to easily switch providers in the event you find better car insurance rates elsewhere for the coverage you need. A little upfront planning can help you avoid headaches down the road.

Article Source: http://EzineArticles.com/3640550

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