25 Apr

Under 21 and Buying Auto Insurance

Under 21 Car Insurance

rechner mit auto

 

So you’re under 21, and yes, we know, looking for car insurance is a complete pain in the neck. Most car insurance companies want to charge you an arm and a leg for insuring you. You’re probably thinking, “I’ve had a car since I was 16 and I haven’t been in one accident, ever” or “I’m on my third car since I was 16, and finding car insurance is impossible.”

Well, to be completely honest car insurance companies have a reason to be a bit scared of the under-twenties age group. Why? Well the data simply shows that you’re more likely to get into an “auto collision” (very fancy). In fact, drivers (both men and women) between the ages of 16 and 19 have the highest annual crash and traffic citation rates when compared with all the other age groups. By in large, the under 21 age group costs insurers the most money. A more sobering fact is that the number one cause of death in teenagers is not suicide, homicide, it is fatal car crashes. The causes of these accidents could come from a multitude of areas, perhaps texting while driving or simply driving while distracted.

So there is some rhyme and reason as to why the car insurance companies charge the millennial’s so much to insure their vehicles. However, that leaves you between a rock and a very hard place. You’re most likely working, in college, or doing both, working to pay off your sky-high tuition bill. The last place you want to spend your money is having to shell out hundreds to ensure your vehicle. There are several things you can do to help bring those costs down to a reasonable way. We’ll illustrate some of those ways here.

Before we begin we’re going to start by making some assumptions, first that you’re either in college or working. Access to parental units may or may not exists, and that you need to find the easiest, best, and fastest way to quality insurance. So, let us begin by defining a few terms first that will be important as we continue our conversation.

Important Keywords

Deductible

  • The amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs.

Premium

  • Agreed upon fees paid for coverage of medical benefits for a defined benefit period. Premiums can be paid by employers, unions, employees, or shared by both the insured individual and the plan sponsor.

Comprehensive Coverage

  • Let’s say your car was damaged by something than a car accident, like a falling tree, a flood, fire, theft or even vandalism, comprehensive coverage will cover the costs of repairing such damage. It may also cover expenses incurred while repairing the vehicle, such as having to get a rental car etc.

Collision Coverage

  • This refers to if you ever collide (hence, collision) into something else, for example a fire hydrant, this will keep you covered from any damages that were inflicted upon your car.

Liability Insurance

  • A car insurance policy that protects you from when another party attempts to take any legal action towards you because of an auto collision.

Underwriter

  • The underwriter is the person who decides if you’re suitable for a type of insurance and how much you will pay for said insurance. This is the most important person when it comes to determining your auto insurance costs.

3-Ways-to-Tailor-Your-Local-Media-Plan-to-Speak-to-Millennials

Now that we’ve gotten the most important terms out of the way let’s get to the meat and bones of the matter. How, as someone who is under 21, can get the highest quality auto insurance while paying a reasonable price. Luck for you, there are actually very good ways to make sure that you’re doing just that. For this first one we’ll assume you’re in college.

  • Look for Insurance Companies That Offer Incentives to College Students

There are some companies that offer better discounts and offers to the under 21 crowd if you’re an active college student (or even alum). For, example, esurance offer up to 15 percent off your premium if you attended one of the following Pac-12 schools:

  • University of Arizona
  • Arizona State University
  • University of California at Berkeley
  • University of Colorado Boulder
  • University of Oregon
  • Oregon State University
  • Stanford University
  • University of California at Los Angeles (UCLA)
  • University of Southern California (USC)
  • University of Utah
  • University of Washington
  • Washington State University

Furthermore Esurance offers discount for being the bright scholar that you are. Assuming that you’re under 25 with at least a 3.0 GPA, Esurance offers a “good student discount” where you can save up to 10 percent on liability, collision, and medical payment coverages. However, discounts do change depending on the state you’re located in.

State Farm and GEICO also offer a similar program where good students can save up to 25 percent on their auto insurance.

  • Compare Offers From Different Auto Insurers

This is a given at any age, but especially if you’re under 21, this will probably give you the result if you’re looking for the lowest price. As chance, would have it, we wrote an article on that too! Give a look over, and let us know what you think!

  • Which car do you drive?

As much as we all would love to drive around a sweet Rolls-Royce, Bentley, or Lamborghini, (if we could afford it), chance are it would cost more to insure than a years’ worth of gas for a reliable Toyota Corolla. The point of that was to say that underwriters have a reason to allot higher premiums for vehicle that inspire “riskier” driving than others. Chances are if you’re driving a Ferrari California you may be just a tiny-bit more likely to push the speed limit than if you were driving a small family sedan. Of course, pushing the speed limit can lead to accidents, and accidents cost car insurance companies money which they do not like.

college-students-and-cheap-preowned-cars

If you’re at a stage where you’re looking at purchasing a car or getting rid of your old one look into cars that are cheapest to ensure. When looking for that new car look that is has safety features already installed, as the insurance companies as huge plus because it is less liability for them. The make and model of the car you use also has a great effect on how much your insurance premium will be. Bankrate created an extremely useful chart that lets you compare which auto insurance companies give you the best discounts for a variety of topics (having multiple policies, multivehicle, anti-theft etc.). Forbes has also made a slideshow with the 10 cheapest cars to insure, if you need a little inspiration if you’re lacking a little imagination.

This is very succinct and informative list on how, if you’re under 21, you can ensure that you’re getting the best type of coverage for the price. This should get you on your way to doing just that. Also, keep going if you’re in school and working, it’s tough, but the results are worth the hardship. If you have any questions or comments please leave them here and we’ll get back to you!

18 Apr

Top 3 Ways to the Lowest Auto Insurance Quote

Auto Insurance

Always Compare First

We’ve seen all the adverts, read all the advertisements, and have gone through endless google searching looking for the lowest auto insurance quote. However, by the end we are often too exhausted to compare every single quote we get. What ends up happening is that a side ad catches your attention and then bam, you sign up, glad that you got this chore off of your shoulders. What started out as a venture to get the lowest price on auto insurance, ends up being a competition on which company can grab your attention first with their ad to seal the deal. That’s not what we wanted because we’ll often end up paying more than we would normally. Here we’ll show you what to do to ensure the lowest price on auto insurance.

Comparing will give you the best shot at finding the lowest price. What’s the best way to do this you may ask? Well that requires a very simple answer, the internet, mainly google, but we’ll cut to the chase quick and recommend to very useful tools. The first is Bankrate insurance quote calculator. You may know Bankrate as the encyclopedia of the financial world but that’s not the only thing they do, there you’re likely to find much more. There comparison is very useful because it provides you with one of the widest range of insurers with highly competitive prices. The second tool we would recommend using is Nerdwallet’s auto insurance comparison tool. Nerdwallet is the go to site for when it comes to credit cards and checking credit scores. The fact that they are well established and are very reputable puts them on our recommend list. Furthermore, they’ll give you a wide range of insurers at the lowest possible price. It comes down to preference when it comes to these types of sites. Try both out, see which one you like and then go from there.

 

Pay-As-You-Drive Insurance

Now with gas prices being as high as they are, chances are you may have cut down on the amount you’re driving. Perhaps you’ve started commuting to work or school on public transit or by bike, or simply walking. This obviously means you have cut down the amount of mileage you’re putting on your car. This puts you in a very good spot, companies are now starting to offer different insurance plans to drivers who are using less miles. Ultimately, what this means for you is insurance premiums that are often 25% to 50% cheaper than your traditional auto insurance. There are two companies that are currently offering this services to their customers. Those two companies are Progressive Casualty Insurance Co. and GMAC insurance. Obviously, you’ll want to check if they are available in your state or area before you cancel your traditional insurance.Cost by Age

This is a great way to save money. Most people do not know about this service and are thus missing out on all of the potential savings that this could afford them. As more and more people decrease the amount they drive, usage based pricing is catching on more and more as it is saving people large amounts of money. However, there are a few things to consider before you take the plunge and decide that pay-as-you-go insurance is the way to go for you.

Things you’ll have to look out for is to make sure you are considering the amount you drive. Like we’ve stated before, those who are driving less are going to benefit more from this type of program. Now, what you may be thinking is, well how are these companies going to be tracking my driving? That’s a great question because it leads up to our next point, you’ll have to be aware of what kind of technology you’re riding around in. Are you equipped with the latest navigation system or are you riding around in an early-2000 Honda Civic? This is another important point to consider, as having something like an early-2000 Civic is going to require you to fork over a little more cash than usual. Next, driving over the mileage allotted by your plan could have you paying extra fees. This is something that goes back to our main point, which is you have to be certain about the miles you’re putting on your car. The last two things are rather self-explanatory but worth pointing out are, that your insurance company may collect other data on your driving habits and that while this is a great program it may not be available in your state or place of residence.

 

Take Advantage of Available Discounts

For example if it’s been X amount of years since your last auto collision some companies may offer discounts for being a “good driver.” Perhaps you’ve taken a defensive driving courDiscountsse, many insurance will also take that into consideration when you’re applying for insurance coverage. Also, if you’re looking for insurance coverage for a teenager you can often show them their grades and get a great discount. Also, if you have a son or daughter that is off to college, and they’ve left their vehicle vacated you can often leave the insurance policy on vacation so that you’re not stuck paying a premium. Some other places to look for possible discounts are:

  1. Security Apparatuses
  2. Choosing the same company for different insurance policies
  3. Children in college
  4. Taking defensive driving courses
  5. Positive credit rating
  6. Children with good grades
  7. No moving citations
  8. Insuring more than 1 car with the same company
  9. Choosing a higher deductible
  10. Taking a driver’s Ed course

These are all great ways to take advantage of different discounts that a whole slew of different companies may offer. The best thing to do with this information is, when you’re calling around, ask them about ALL the discounts they offer. This way you’ll be informed of any offers they have and whether or not it makes sense to climb on board with them.

Conclusion

Choosing the “right” auto insurance is tough. Having to decide between coverage, companies, and other miscellaneous factors can muddle the process. However, with these tips you can be sure that you’ll have the right tools to make the best informed decision.