Auto Insurance Help for Teens and Adults

I really don’t like paying my automobile insurance every month, do you? For that matter, I don’t like paying any insurance bill of any type. But as we all know, insurance is a necessary and important part of our financial life. It protects our interests in case of an accident, theft, damage or bodily injury.  Your goal is to get adequate insurance coverage at the lowest cost possible. The good news is that you can have some control over how much you spend for insurance. There are ways to reduce your insurance costs and pay less by paying attention to this article and calling your agent to make the necessary changes.  Top 5 Ways for Teens to Save on Insurance 1. Hey teens, if you are a “good student” defined as a 3.0 or better GPA, you could get a break on your insurance. If your parents make you pay your own insurance, crack open those books and get studying. If your parents pay for your insurance, consider yourself lucky. You can show your appreciation though by maintaining that 3.0 average. 2. Tell your agent when you have three years of driving  experience. Inexperienced operators, three years or less usually have higher rates. When you have your three years in, communicate it. Don’t assume your agent will automatically know! 3. Teens, I know you want to drive a Porche or Pantera but how about driving a car that only needs liability and uninsured motorist coverage. The costs for collision and comprehensive can drain a pocket book. This is usually recommended for cars valued at less than $3,000. The other vehicle is still covered by insurance if an accident is your fault and if it’s not your fault, your vehicle is covered by the other driver’s insurance.  But be realistic about your driving style. If you are an aggressive driver and refuse to drive defensively, consider retaining your collision coverage, (unless you want to save money.) Then you should consider changing your driving style. 4. Register and insure your vehicle under your parent’s name.  This can save you money on premiums. Also, list yourself on the policy as an occasional driver instead of a primary driver. Your premiums will be reduced and you can stay home more and study. 5. If you get a ticket, it’s easier to pay the ticket and be done with it. But what you really should do is go to traffic school and get the point(s) taken off your record. The Internet has made it easy to take a traffic course electronically at a fraction of the cost. You can do it in the convenience of your own home in your own time. Check with your local DMV office if this is an approved web site for your county. Top Six Ways for Adults to Save on Insurance 1. Carry your home and auto insurance policies with one agent. You should get a great discount as a result. But do check around for price comparisons. I had my auto policy separate from my home insurance for years because the price wasn’t even competitive. Just last year, my auto insurance company revised their homeowner rates to be competitive and I switched over. The result was a 20% discount on my automobile policy. 2. When shopping for a car, remember that insurance rates are usually based on the value of the vehicle. A cheaper car can mean cheaper insurance. Different cars will have different ratings, so check out the rates with the insurance company BEFORE you buy a car. You don’t want any unexpected surprises. Also, dual airbags, anti lock brakes and security systems usually qualify you for a discount. Be sure to let your agent know if your vehicle has any of these qualifications. 3. If you are 55 or over, there is a course you can take called the “mature driver test”. Take it, pass, and they’ll lower your rates. Sounds like a great deal to me! If you are still driving when you turn 80, your rates will probably go up again so get all the discounts you can now. 4. Do you have two vehicles? If so, can one of them be classified as a “pleasure” vehicle? If your car isn’t used for commuting everyday in rush hour traffic, your insurance rates can be lowered. Consider car pooling with a spouse or friend to make this happen! 5. Raise your deductible to $500 or even $1000 if you can afford it. This will reduce your monthly premiums. Many people are afraid to do this in case of an accident. Remember, you only need to pay the deductible if an accident is your fault. What are odds that an accident will be your fault? Review your past driving record. Analyze and evaluate your personal situation and decide what’s best for you. 6. Are you paying for any duplicate insurance coverage such as car rental or medical? Sometimes these are already covered by a towing service such as AAA Road Service membership or medical coverage provided by your employer? * // * // * // * // * // * // * // * // * // * // * // * // * Doris Dobkins is the author of “Financial Freedom From A-Z” and publisher of the weekly ezine $mart Money New$ featuring financial strategies and money saving tips. To subscribe, send email to: ne**@cr**************.com  or check out her web site: http://www.creativefinances.com