Tag Archives: car insurance

How to Find Cheap Auto Insurance

Is Cheap Car Insurance Possible?

Auto insurance is one of those irritating expenses of car ownership that has no immediately obvious benefit. We pay and pay, and may never get anything in return. Teenage first car buyers are always a bit startled by the high cost of insurance.

Car insurance is one of the most expensive costs of owning and driving a car, especially for teenagers and other new drivers who can least afford it.

In this article we’ll show you how and where to find the car insurance company for your first car that has the best rates and provides the best service.

We frequently hear the question, “Which auto insurance company is best?” or “Where can I find the cheapest car insurance?” or “What is the cheapest insurance for a 16 year old?” It would be nice if there were a quick simple answer to those questions.

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Teen Auto Insurance – Questions and Answers

auto insurance for teensOne of the most bewildering aspects of car ownership for teenagers is that of auto insurance.  It raises questions about why it’s needed, why it costs so much, how it works, and what happens when accidents happen.

We have noticed certain questions come up frequently on online question-and-answer boards used by teen drivers. So we have compiled a “top 10″ list of those questions, with answers, that may help teen drivers better understand car insurance.

1. Q. Why do I need car insurance?

A. Two reasons: 1) It’s the law in most states. In order to drive, you must have at least minimum-coverage liability car insurance to protect others whose lives and vehicles you might damage or destroy in an accident that is your fault — even though you might be a good driver and know that you’ll never have an accident, and  2) To protect yourself and your family against financial disaster should you be sued for an accident you might cause.

2. Q. Why does car insurance cost so much for teen drivers?

A. Simple. Insurance statistics and police reports show that teens have more accidents than any other age group. Therefore, insurance companies are at greater risk of having to pay out claims for teenagers — which means higher rates to help compensate for that risk. The highest rates are paid by teen males driving sporty cars in highly populated areas. Rates can vary by state and city, and by insurance company. That’s why it is so important for teens who need insurance to shop around and get quotes from multiple companies.

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Auto Insurance Basics Explained

Understanding the basics of auto insurance

You may go through your entire life and never have a car accident. But the odds are against you. Auto insurance protects you from potentially disasterous costs of such accidents. If you are buying your first car, you must understand how car insurance works and why you need it.

Laws in most states require that drivers have at least a minimum level of liability insurance – repeat, liability insurance – not collision or comprehensive, although lenders and lease companies may require full coverage, including liability, collision, and comprehensive.

Types of insurance
An auto insurance policy might include one or more of the following types of coverage: Continue reading Auto Insurance Basics Explained

Can I Afford This Car?

How do I know how much car I can afford?

Assuming you’ll buy with a loan, you will want to have a monthly car payment that will fit within your current income, after considering all your other expenses. Don’t make the mistake of buying based on future expectations — a forthcoming raise, a new job, or other potential improvements in your finances. Your expectations might not come to reality and you’ll be stuck with a car you can’t afford. Base your purchase only on current, stable finances. Continue reading Can I Afford This Car?

Why Do I Need Car Insurance?

Is auto insurance really necessary? Why do I need it?

Since car insurance is so expensive, partiularly for teenagers and other young drivers, it’s natural that this question should come up frequently for first time car buyers.

You need insurance on your car to protect you from the risk of disasterous financial problems resulting from accidents,  personal injury and property damage, and loss by theft, fire, or natural disasters. It may seem pointless to spend so much money on something you may never need. But if you ever need it, you’ll be really happy you have it.

It’s tempting to believe that you don’t need insurance because you are a safe driver and will never cause an accident. However, other people can involve you in an accident that is not your fault. If the other driver doesn’t have sufficient car insurance, your own insurance will take over and pay your repair bills and medical expenses.

You might avoid insurance if you had enough money to cover such problems on your own.  This is called “self-insurance.” However, self-insurance is not legally sufficient in most states and is not practical for most people. Continue reading Why Do I Need Car Insurance?

Is THIS a Good First Car?

cheap auto insuranceI regularly answer people’s car buying and selling questions on Yahoo Answers (My user name is TiggyWiggy, my cat’s name) and one of the most frequent questions that comes up several times a day is, “Is this a good first car for a teen?”  And in the details, they’ll state what car they are talking about. It might be anything from a 1980s Oldsmobile with 200,000 miles, to a brand new high priced luxury car, to a big SUV, a high-powered sports car, or a 1960s muscle car.

More often than not, the car they like is NOT a good first car. I sometimes think they know that, but they are looking for some opinions otherwise. Often, they are in disagreement with sensible parents who are opposing their poor choice.

Here are some of the kinds of vehicles asked about:

Old inexpensive used car, unknown condition, high mileage

Many old cars, even with high mileage, can be in excellent first cars. However, most old cars have problems, some serious (and expensive), some not so serious.  And no car, even a reliable brand such as Honda and Toyota, are exempt from problems when they begin to age. The only way to know whether such a car is a good first car is to have a professional mechanic inspect it before the purchase. It’s not a good practice to rely on the word of a seller in determining a car’s condition. Not that sellers are all dishonest, but sellers and dealers often don’t know the real condition of the cars they sell.

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Preparing Your Teen for Car Safety: Four Tips

teen car safetyPreparing a teen for their driver’s license is both exciting and frightening. The freedom of driving is exhilarating, but the dangers are real. Car insurance for teen drivers is significantly more expensive than it is for more experienced adults — for good reasons. Inexperience and unsafe driving can lead to accidents, and accidents, even minor fender benders, can make a teen’s car insurance even more costly. Using the following five tips while preparing your teen for safe driving can help to ease your concerns and pay dividends down the road.

Buckle Up

Teaching your teen the importance of using seat belts is one of the most important safe driving tips that they can learn. Drivers and passengers who are properly restrained during the unfortunate event of an accident almost always suffer far less serious wounds, and have a far lower mortality rate, than those who are not wearing their seatbelts. It is estimated by the National Highway Safety Administration that properly worn seatbelts lower the risk of fatal injuries by 45 percent, and the risk of moderate-to-critical injuries by 50 percent.

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