Monthly Archives: January 2017

How to Save a Bundle

Sticker Shock

If you have a son or daughter who will soon be of driving age, and you’ve done even a little research on the impact of adding them to your car insurance portfolio, you’re probably still in a state of shock. Because one out of every two young drivers is likely to have a claim-producing accident or incident within their first two years behind the wheel, insurance companies pass those actuarial realities on to you in the form of outrageous policy premiums. Compounding the problem is the fact that automotive repair costs have gone through the roof over the past decade, which increases the average cost of each accident or incident. This “perfect storm” of compounding costs means that you’re well served to investigate every possible avenue for car insurance premium savings.

We’ll briefly cover seven tips for saving money on your young driver car insurance policy.

1. Bundle up to weather the financial storm. I’m referring to bundled policy elements, which is an insurance industry term that simply means having more than one policy or service with the same insurance company. By bundling your policy needs with the same company, such as insuring both your home and your car with them, you can often save up to 25% off of your combined premium costs.

2. Get a multi-car insurance discount. If you don’t bundle disparate policy needs with the same insurer, at least insure all your vehicles with the same company. This will save an average of 20%.

3. Make sure Junior gets good grades. Short of doing his homework for him or her, you should do everything you can to make sure your young driver gets solid grades in school. The required grade point average varies by insurer (it’s usually a 3.2 to 3.5 or better), but once your son or daughter meets the threshold, you’ll begin saving up to 15% on their insurance premium.

4. Be a safe, conservative driver yourself. Two benefits here: first, you’ll set a great example for your young driver. Second, remaining accident-free and ticket-free will lower your overall risk profile, which will impact every premium on your account. Safe drivers save money.

5. Remain a loyal customer. Most insurance providers reward a long tenure with them as your car insurance provider. It varies by car insurance company, but remaining with them for anywhere between 3 and 5 years will often garner a loyalty discount of up to 15%.

6. Maximize your safety options. Make sure your young driver’s car includes daytime running lights, anti-lock brakes, lane-control assistance, and anti-theft devices. The discounts available for these packages vary, but you want to give your son or daughter every safety advantage available.

7. Research any affinity group memberships you have. Memberships in veterans groups, Elks or Masonic lodges, and the like, can often be worth 10% off your policy premium.

Following these seven tips will help you save the maximum amount possible on your car insurance policy.

Young Driver Car Insurance

At a certain stage your young son or daughter will ask for your car and would want to drive. However, if they pass in the driving license test and are of or above 16 years of age then you should have no point of preventing them. They too want to drive a car and in that case you can help them by providing your car. But one thing you must remember that you should not let them drive your car without a young driver car insurance. Even in many places if it is found that a young driver is driving car without this insurance then their driving license is being seized. Also they are being banned from driving cars until they attain an age of 21.

Such insurance policies are generally costly and the premiums are high. As the ratio of road accidents is high in case of the young drivers that is why; such high charges are being made. In many cases it is found that the young drivers use to take the driving business lightly and they gets distracted very easily while on road. As they are inexperienced it becomes tough for them too handle certain situations. Also they do not obey the traffic signals and speed limits.

If your child is brilliant in his studies and secures good grades in his class then your problems will lighten to a great extent. The rate of premium then gets reduced because it is being believed by the insurance companies that the brilliant students use to be responsible. They will not be bad in driving too as they are in their studies. But if he faces one accident or speeding ticket then such facilities will no more be available for him.

In some cases, the young driver car insurance policy is being added to the car insurance policy of his parents. This will be possible if both the insurance policies are of the same company. If you get it done then you can pay only one premium per month.