Monthly Archives: August 2018

The Truth About Car Insurance

Many college students today drive their own cars, and because a lot of them are recklessly driving their cars while intoxicated, they are prone to road accidents. Consequently, auto insurance companies now offer car insurance for college students at a high cost. If you have car insurance, the insurer will pay for the repair of the automobile if it is damaged during an accident. Maintaining car insurance involves paying monthly, quarterly, or yearly premiums.

For students with cars, auto insurance is necessary for several reasons. The best car insurance for college students offers the following benefits:

1. Protection of investment (in this case, the automobile itself)

2. Compensation for medical bills sustained because of the car accident

3. Compensation for all costs incurred due to the accident

4. Compensation for car repairs due to vandalism or natural calamities

5. Compensation after car theft

6. Peace of mind

College students should consider getting auto insurance for the above-listed reasons. However, it is sometimes hard to give advice to carefree young adults. One problem is that many of these young people still ask support from their parents. So it is probably the parents that should get car insurance for their sons or daughters who drive their cars. Those students who work part-time do not have enough funds to support a decent insurance policy for their automobiles.

One problem is that car insurance can get expensive, especially if a comprehensive coverage is chosen. Complete auto insurance includes protection for accident, damage, theft, vandalism, and third party claims. Many students can only afford basic insurance coverage. College students may decide to choose low-cost insurance, which anyway would be able to cover usual car damages.

Another problem regarding auto insurance is that a lot of insurance providers are reluctant to approve applications done by students. The reason is that high cases of reckless driving and over-speeding involve college students. This is why cheap automobile insurance policies for college students are hard to obtain. Insurers will check the driving records of the student and the condition of the car. Students should search earnestly for companies that provide the most favorable insurance products.

Some insurance companies provide fine deals for the sake of competition. To not be fooled by seemingly good deals, ask quotes from different insurers and look into the details of their insurance products. At the same time, it is also essential to look at the testimonials. The reputation of the insurer should be considered.

How can you increase chances of getting the best car insurance for college students?

1. Keep good driving records. Even one “driving while intoxicated” record can cause any insurance firm to raise cost of premiums.

2. Have good academic standing. Since you are a student, it would be wise to show insurance companies you are doing well in school. The assumption is that students with good grades are more responsible and are less likely to be involved in road accidents.

3. Own a good car. A good car is a car with standard safety features. Generally, one can get low-cost insurance policy for a more recent car.

Getting Cheap Car Insurance

Insurance policies mean you have to make regular payments, and these payments cut a slice on your finances. Many people don’t like paying too much for insurance products. This is why they tend to get cheap car insurance. Low-cost automobile insurance is not necessarily inferior to the rest of the insurance products. There are important questions to ask.

What type of vehicle do you have?

The value of your car affects the amount of insurance you pay for it. Generally, small cars mean lower premiums. Car insurance advisers say that choosing a car you can afford is a good thing.

Details about the car are important. Insurance companies want to see correct details. For instance, ownership should be clearly established. Where the car was bought is another thing that affects the premium. Imported cars may have higher insurance cost because its parts are difficult to find or pricey.

Does your car have enhanced security features?

The security features of your automobile are an advantage. Aside from providing safety, the security features also reduce the amount of insurance. People whose cars have alarm system, immobilizer, and tracker may have the cheapest car insurance premiums. The rationale is that cars with safety features have low chances of being stolen. The alarm system alerts the owner in case an intruder tries to break into the automobile. The immobilizers keep your car from being started by an intruder. The trackers, on the other hand, allow your car to be recovered after being stolen. It would be an advantage to make sure the car you buy has enhanced security mechanisms. New cars generally have enhanced security elements.

Who owns the car?

There is a difference between car owners and car keepers. Insurance companies usually ask whether the person who owns the automobile is also the one driving it. If you own and drive your car, you can get cheap car insurance quotes. If someone else drives your car, quotes can be higher.

How is the car used?

The insurance provider will ask how you use your car. If you insure a vehicle for personal use, it must be used for personal transportation purposes only. If you drove the car for business purposes and you get into an accident, your insurance provider may not reimburse costs incurred during the accident.
Cars used for business purposes sustain bigger premiums. Usually, only vehicles used for personal and family purposes can qualify for cheap auto insurance. If your car is only used for daily driving to family or friends, you may pay low premiums. Insurance providers assume that the more frequently you use your cars, the higher your chances of having car accidents.

What kind of insurance do you need?

Car insurance has varied levels. Depending on your need, you may go for third-party or comprehensive auto insurance. Third-party insurance is very limited and covers only claims of third parties. If you slam into the car of someone else, your insurer will cover their repair expenses, but you shall pay for your own repairs. There are insurance products that provide a wider range of protection that includes fire damage and theft. Comprehensive car insurance has a wide coverage including fire, theft, damage due to accidents, and third-party claims. The rule of the thumb is that the wider the coverage, the higher the premium.

How to Reduce the Cost of Your Car Insurance

Auto insurance is a necessity for all car owners, and every car owner wants to acquire the best car insurance rate possible. If you are putting insurance on your first car, it’s just right to shop for the most advantageous rate. At the same time, you should probably look for better rates if your insurer has raised premiums. Most people consider the lowest rate as the best rate, but the lowest rate may include inadequate coverage. This is why many people agree that the best coverage is the one that comes with a reasonable price.

Look at your annual premium.

If you are paying for collision and comprehensive coverage, and the yearly premium is more than 10% of your car’s actual value, it is probably time to seek cheaper coverage. It’s no longer practical to maintain relatively high annual premiums for an old car. Many owners of old cars disregard buying comprehensive insurance.

Shop yearly.

Insurance companies change rates of auto policies every year. So, if you are satisfied with your rate this year, the figures could change to your dismay the following year. It pays to browse the internet for other insurers in your state to compare insurance rates of different insurance companies.

Don’t be too quick in buying new vehicles.

Insurers have valid reasons for putting high premiums on new cars. They are attractive, pricey, and prone to theft. Their parts are expensive, so the insurance company will spend a lot on repair of damaged parts in case of a collision or accident.

The cost of insurance is inversely proportional to the age of the vehicle. The older the car is, the lower the insurance premiums. This is actually a usual observation. If you want cheap car insurance, buy an older car-not necessarily a dilapidated car, but one that still operates well.

Invest in automobile safety features.

Insurers will look at the safety features of your vehicle when assessing how much premium your insurance should bear. Drivers whose cars have adequate safety features may be eligible to discounts. The safety features insurance companies usually look for are air bags, alarm systems, immobilizers, anti-lock brakes, adjustable seat belts, traction control systems, and head restraints.

Be a good driver.

Keeping a good and clean driving record is your ticket to cheaper auto insurance rates. Insurance companies will not trust you if you have a number of careless accidents, such as bumping your car a few times into a lamppost. If you have an unimpressive driving history, the insurer will think that they would be spending too much for you; thus, they will ask for higher payments from you.

Skip the sports car.

That is, if you want cheap car insurance. If you really want a sleek sports car, be ready to face high premiums on your insurance. Sports cars are famous in the auto insurance industry for needing very pricey insurance. Aside from sports cars, expensive cars would also tend to incur high insurance costs.