policy

How to Save Your Teenager Money on Car Insurance

The Right CarGetting car insurance for your teen can be pretty tricky. Your teenage son or daughter isn’t experience – the insurance company knows it. If you’re not careful, your child will end up paying through the nose for their policy. Fortunately, it doesn’t have to be that way. Here are a few tips to save your child (and you) money on auto insurance:

Add Your Child To Your Own Policy

It’s tempting to shove your child out of the nest, and put him on his own policy, but this might actually be the most expensive route to take. Yes, it might cause your insurance policy premiums to go up if you add your teen to your policy, but it’s probably not as bad as your child having his own.

Check with your insurer. Sometimes, insurance companies will look at the situation this way: you’re a safe driver. Your teen doesn’t have experience, but you do. Therefore, it’s a safe bet that, if you’re willing to take on your child, your child must be a good risk. After all, why would you risk your good driving record by adding a high-risk child to the policy?

Choose The Right Car

Your choice of vehicle will impact your child’s premiums. Try to go for a used vehicle that’s pretty low-key. A car that has a high-performance engine is usually a bad idea. Insurance companies look at teenagers and sports cars as a bad mix.

Teens are young, by nature, and inexperienced. Put them behind the wheel of a fast car and there’s a high probability of a car wreck. Watch your premiums (or your child’s premiums) skyrocket. Keep your premiums low by getting a 5 year-old “grocery getter.” It’s not sexy, but it will give your teen experience and keep your premiums low.

Safe Driving Courses

Driver’s Education classes are another overlooked way to save money on insurance. When your child first gets her license, she has a unique opportunity to save money. Driver Education programs are different from the safe driving courses you take as an adult, although your child might be able to benefit from those too.

Driver Education gives extensive, and in-depth, education on driving fundamentals and your state’s driving laws. Because of this, and the fact that students must pass both a driving and written exam, insurers often look favorably on kids who go through this multi-month ordeal.

Encourage Good Grades

Good grades pay off. If your child isn’t Einstein, that’s OK. Try to encourage your child to study more, raise his grade average, and be more responsible. Consider hiring a tutor, if necessary. Yes, tutors can cost $45 or more per hour. But this cost pales in comparison to the amount of money you’ll spend year-after-year on insurance premiums if your child continues to get lackluster grades.

While not every insurance company will dole out discounts for “A” students, a fair number of them do. Check with your insurer. In fact, it might be worth shopping around for a company that does reward good grades since your teen might be on your policy for a few years. Every little bit helps.

Gillian Kearney is always looking for innovative ways to save money for her family and friends. She also enjoys sharing her ideas and research through blogging. Visit the Monkey.co.uk site for more ideas.


What Should an Insurance Company have to do to Gain your Trust?

If you want to remain financially secure you need insurance. It doesn’t matter what type of profession you have. Everyone needs insurance to be protected from accidents. If you don’t take the proper precautions you could end up damaging your finances.

Why Finding A Trustworthy Company Is Important

You will find lots of different kinds of insurance based on the precise type of plan you’ll need. Before you rush off and buy just any policy you need to be comfortable with the company you choose. There are many unscrupulous insurance companies who would love to take advantage of you. We will go over several indicators that the insurance company you have chosen is a good one.

Why It’s Important To Ignore Their Marketing

You should not go with the first insurance company that you see. Many of them will use carefully chosen words like “care” and “trust” to attract you to their brand. Lots of companies will use these words when advertising, but not all of them will live up to their claims when an accident happens. If you don’t choose carefully you can have a lot of trouble trying to make a claim. All this is exactly why you will want to ignore all of a company’s marketing tactics. Ignore everything associated with their company like their name, images and branding. Insurance companies that don’t bother with fluff and get right to the point are usually good choices. Trust can only be established when everything is straightforward. If you understand the companies benefits and coverage without too much explanation that’s a good start.

Find Out Your Insurance Company’s Exact Pricing Structure

Many insurance companies will avoid talking about pricing if they get the chance. If their client doesn’t make any effort to find out about the exact pricing they certainly won’t mention it. You can end up paying a higher premium then you anticipated if you are not careful. You need to make sure that they break down their pricing in easy to understand terms. There are two factors that are important when it comes to pricing. The coverage needs to be up to par for what you need, and the cost needs to be fair for what you are getting. You know you have a trustworthy company if these two conditions are met.

Final Checks Before Signing The Contract

The final thing you need to check is that all the conditions of your insurance are clearly spelled out in the contract. Never sign a contract before you understand everything that’s inside it. If some of the words it uses are confusing ask for clarification. This applies to any part of the contract. If all the terms look fair and you understand everything 100% only then can you sign the contract.

It’s important to leave emotion out of insurance deals. They use lots of clever marketing strategies to try and gain your trust. The most important thing is that you get the coverage you need in case of an accident. Forget the marketing hype.

Author’s Bio: Kevin Brown a good writer on insurance topic and he suggested to log on Insurancecompanies.org for more information.


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