AUTO INSURANCE ARTICLE
Teens, Cars and Affordable Auto Insurance
By: cradel_bookParents really dread adding their teenagers to their auto insurance policy. But there are a number of ways that people can save money once their teens acquire their driving license. It is common knowledge that auto insurance companies do not like teenage drivers as they are considered high risks. As teenagers are more impulsive they are more likely to encounter accidents and file claims. This is not very profitable for the insurance companies so they often charge you more if your policy includes a teenage driver. How can we still get an affordable auto insurance for our teens?
A friend of mine benefits from discounts for long-term customers with good driving records. He has been with the same insurance company since he was 20 and has had the least number of minor accidents. Thus, when his teenage daughter finally acquired her driving license, they were very surprised that they didn’t see an increase in their auto insurance premiums. What is their secret? Their family keeps all of their insurance -- homeowners, an umbrella liability policy and coverage on three cars -- with just one insurance company, which makes them highly eligible for extra discounts and big savings. Having all their policies with just one company gives them piece of mind, saves them a lot of time and gives them a lot of savings.
Another factor may be that their teenage daughter’s good grades at school helped keep her premiums low. When their daughter headed off to college in LA without a car, she qualified for a lower rate but is still covered when she comes back home for vacations. Pairing a young driver with a safe car can also make a big difference in your premiums so it’s always worth shopping for the safest cars or at least installing safety devices in your teen’s car. This would most likely lower your auto insurance premiums.
On the other hand, if you don't have a long-standing relationship with one company, check out the market when your teenagers start driving. An insurer offering the lowest rates for adults may have some of the highest premiums for teenage drivers so always check and get as much auto insurance quotes as possible. It may be possible to get cheap auto insurance online and it’s also much easier to compare prices.
Keeping all three kinds of insurance with one company would also simplify your finances. Your insurance company will send you a consolidated bill every month, so you don't take a hit in any particular month. You will realize that not only will save you time and effort but also a lot of money.
My friend also tipped me that he simplified his life insurance this year by replacing several small, annually renewable term policies with two 20-year term policies, which will provide coverage at a fixed price until his mortgage is paid off. Because insurance rates have dropped so much over the past decade, you may be able to lock in a longer term with little impact on your annual premiums.