Many people have obtained their driver's licenses but do not own a car. For busy executives working in cities, public transport is very advanced and convenient, which is why many chose to avoid the hefty cost of car ownership.
However, what if your friends are on holiday and offer to lend you the car for a few weeks. Like the temporary car insurance plans available on holiday car rental, you can get these from most motor insurers online. It is very affordable, so do not risk driving without temporary insurance and end up having your friend's car being confiscated by the police.
Wednesday, 24 March 2010
Drivers With Bad Credit Increases The Average Car Premium
If you think bad credit only affects your personal loans and interest payments, you are wrong. You will be charged higher than average car insurance rates because you are considered high risk to the insurers. Past statistics over the past ten years have shown that drivers with poor credit ratings made more claims, which increases the cost of business for the insurers. If you work on improving your credit rating, you will be able to get cheaper than average car insurance.
Auto Insurance Comparisons
Low car insurance rates are available at both big established insurers as well as the newer companies. The bigger companies have lower running risks and can afford to give out low car insurance rates to hog up the market share while newer companies must keep their prices lower than the average car insurance plans in order to compete against the former.
When you are trying to compare several quotes you have gotten against the national average car insurance rates, do note that there are a few aspects which can dilute the accuracy of these figures.
When you are trying to compare several quotes you have gotten against the national average car insurance rates, do note that there are a few aspects which can dilute the accuracy of these figures.
Cheapest Monthly Car Insurance Rates
If you managed to reach this last paragraph, you will realize that trying to get the cheapest monthly car insurance rates in UK when you have at least two cars and drivers can amount to quite a headache. Besides the given discount, there are other umbrella benefits available from the bigger companies that wanted you to get home, travel or life policies from them as well.
Although you can get quick quotes from the internet, having to consider more than 3 cars and 4 drivers on the same multi car insurance plan is better left to a broker who can help you avoid making mistakes by especially choosing the best car insurance for young drivers which can get rather confusing.
Although you can get quick quotes from the internet, having to consider more than 3 cars and 4 drivers on the same multi car insurance plan is better left to a broker who can help you avoid making mistakes by especially choosing the best car insurance for young drivers which can get rather confusing.
Multiple Car Insurance Discounts
To get cheap car coverage for new drivers, it is a common strategy to exploit the discounts provided on multi car insurance from the same company to help young teen drivers get onto the road and accumulate a clean driving record. Until they reach the age of 25, the insurance rates for young drivers will be substantially higher especially for male drivers. However, if you do not intend to buy another vehicle especially for use by your children, then the benefits does not apply here at all.
Indeed, many households cannot afford having more than one car, when it is simply cheaper for the teens to take public transport to school or work everyday. They can have limited access to the family car in the evenings or during weekends for their leisure instead. In such cases, they can be added as secondary drivers onto your single car policy and you will be charged a smaller additional fee compared to an equivalent multi vehicle plan. This may be better to keep costs down since young driver insurance rates are never cheap either way.
On the other hand, if you have more than one car, then it definitely makes sense to apply for multi discount plans from the same company. If you are the only driver, you can state a low expected annual mileage on your various cars and get even more discounts (after all, you only have so many driving hours to spread over your cars).
For example, you may drive a convertible during summer and a truck during winter. Since one or more of your cars will be spending a lot of time parked and unutilized, you need to have a proper parking space for them. A personal locked garage will help you lower your premiums significantly, especially if you live in high crime rate neighborhoods.
All our cars intended to be covered by the same UK car insurer need to be registered at the same residential address and owned by the policy holder. If there are to be more than one named driver on the policy, they need to be staying at the same address given above as well. This usually includes family members such your spouse, parents, siblings, children and even extended family members and friends.
Before you opt for this, you need to reconsider the following important factors first. When you have >1 drivers and >1 cars, things can get really complicated, so try to follow through these points. Firstly, the policy owner will be a named driver on all the cars covered by the same policy. Although you can cover up to 5 cars on the same plan by many insurers in UK, will you really be driving on each of the registered vehicle some time throughout the year?
If not, you can be wasting money by being named as the primary driver on all the vehicles bound to the same policy. Similarly, when you add your family members as secondary drivers to your policy, consider which car they will be using most frequently and just add that.
Indeed, many households cannot afford having more than one car, when it is simply cheaper for the teens to take public transport to school or work everyday. They can have limited access to the family car in the evenings or during weekends for their leisure instead. In such cases, they can be added as secondary drivers onto your single car policy and you will be charged a smaller additional fee compared to an equivalent multi vehicle plan. This may be better to keep costs down since young driver insurance rates are never cheap either way.
On the other hand, if you have more than one car, then it definitely makes sense to apply for multi discount plans from the same company. If you are the only driver, you can state a low expected annual mileage on your various cars and get even more discounts (after all, you only have so many driving hours to spread over your cars).
For example, you may drive a convertible during summer and a truck during winter. Since one or more of your cars will be spending a lot of time parked and unutilized, you need to have a proper parking space for them. A personal locked garage will help you lower your premiums significantly, especially if you live in high crime rate neighborhoods.
All our cars intended to be covered by the same UK car insurer need to be registered at the same residential address and owned by the policy holder. If there are to be more than one named driver on the policy, they need to be staying at the same address given above as well. This usually includes family members such your spouse, parents, siblings, children and even extended family members and friends.
Before you opt for this, you need to reconsider the following important factors first. When you have >1 drivers and >1 cars, things can get really complicated, so try to follow through these points. Firstly, the policy owner will be a named driver on all the cars covered by the same policy. Although you can cover up to 5 cars on the same plan by many insurers in UK, will you really be driving on each of the registered vehicle some time throughout the year?
If not, you can be wasting money by being named as the primary driver on all the vehicles bound to the same policy. Similarly, when you add your family members as secondary drivers to your policy, consider which car they will be using most frequently and just add that.
Insurance Quotes For Young Drivers
Unfortunately, the other things you can do now to lower your insurance quotes for young drivers is somehow limited. For parents that do drive, you can add your teenager to your auto policies. Aside from being older and experienced drivers, parents get lower prices because they are married, own a house and have good credit history (hopefully). You can choose to add a new car onto your policy or to add a secondary driver (your son or daughter), depending on whether you are purchasing another car for their personal usage.
Either way, you get discounts on the additional coverage, although the latter option will still be obviously cheaper because the rates are computed based on the driving records of all named drivers in the family, so your clean driving records can offset the high risk profiles of the young and new drivers.
There are however situations when buying another car and policy for your teenager are the cheaper option. For example, if the parent drives a sporty Porsche Boxster or Corvette, the car insurance under 25 years old will be alarming high (reckless driver plus a show off car, get the drift?). Pairing a new driver with a slower, conservative Volvo station wagon which has a high crash rating may be better off. You can also get cheap car insurance for new drivers by driving a cheap and widely distributed domestic car. This means the repair costs are probably cheaper and less than $500 dollars for most minor damages or car problems. This $500 dollars is the typical deductible you can find on most cheap car insurance for young drivers.
For illustration, if you try to claim for damages that are only $400 dollars, your insurer will not pay you a cent. However, if the repair costs are $2000 dollars, you only need to pay the $500 deductible while the remaining $1500 will be settled by the insurer.
Even better, if you choose to drive an old car that is valued at around $500 (try the government police auctions), you can take out cheaper liability only policies. A liability car insurance covers you for damages caused by your driving to other people and their possessions.
Comprehensive policies on the other hand, cover you and your car as well. However, the comprehensive car insurance for young people under 25 years old can be pretty expensive and are avoided by most people unless they have an expensive car to protect.
The insurance quotes for young drivers can also be adjusted by choosing the appropriate policy deductible and maximum limits. You need to be careful with these because they are what you may have to pay in the event of a road accident caused by you. Generally, for safe drivers, we recommend choosing the highest deductible you can afford out of pocket.
We assume you are not likely to be the culprit behind any traffic accidents you are involved in, and hence can claim for damages on the other party's liability policy. The maximum limit is the amount your insurer will continue to pay throughout the coverage duration and anything above will be put on your tab. Cheap car insurance for new drivers can thus be gotten by increasing the deductible and lowering the maximum policy limits.
Finally, buying the policy direct through the insurer website such as from Tesco Car Insurance or Progress etc can be cheaper compared to doing so through an insurance agent. You need to pay commission for the latter route.
Either way, you get discounts on the additional coverage, although the latter option will still be obviously cheaper because the rates are computed based on the driving records of all named drivers in the family, so your clean driving records can offset the high risk profiles of the young and new drivers.
There are however situations when buying another car and policy for your teenager are the cheaper option. For example, if the parent drives a sporty Porsche Boxster or Corvette, the car insurance under 25 years old will be alarming high (reckless driver plus a show off car, get the drift?). Pairing a new driver with a slower, conservative Volvo station wagon which has a high crash rating may be better off. You can also get cheap car insurance for new drivers by driving a cheap and widely distributed domestic car. This means the repair costs are probably cheaper and less than $500 dollars for most minor damages or car problems. This $500 dollars is the typical deductible you can find on most cheap car insurance for young drivers.
For illustration, if you try to claim for damages that are only $400 dollars, your insurer will not pay you a cent. However, if the repair costs are $2000 dollars, you only need to pay the $500 deductible while the remaining $1500 will be settled by the insurer.
Even better, if you choose to drive an old car that is valued at around $500 (try the government police auctions), you can take out cheaper liability only policies. A liability car insurance covers you for damages caused by your driving to other people and their possessions.
Comprehensive policies on the other hand, cover you and your car as well. However, the comprehensive car insurance for young people under 25 years old can be pretty expensive and are avoided by most people unless they have an expensive car to protect.
The insurance quotes for young drivers can also be adjusted by choosing the appropriate policy deductible and maximum limits. You need to be careful with these because they are what you may have to pay in the event of a road accident caused by you. Generally, for safe drivers, we recommend choosing the highest deductible you can afford out of pocket.
We assume you are not likely to be the culprit behind any traffic accidents you are involved in, and hence can claim for damages on the other party's liability policy. The maximum limit is the amount your insurer will continue to pay throughout the coverage duration and anything above will be put on your tab. Cheap car insurance for new drivers can thus be gotten by increasing the deductible and lowering the maximum policy limits.
Finally, buying the policy direct through the insurer website such as from Tesco Car Insurance or Progress etc can be cheaper compared to doing so through an insurance agent. You need to pay commission for the latter route.
Insurance Companies For Young Drivers
Do you know that you can get insurance coverage for the time spent on additional driver's education and defensive driving lessons to get the license. This will help lower the premiums charged for your new drivers at home when they eventually get their licenses. If your son or daughter's grades in school are consistently excellent and above B average, submit them along with your application to get another discount.
Some insurance companies for young drivers also make special provisions for their new clients. They have in-house training and test sessions to evaluate the risk profile of applicants for car insurance under 25 years old.
Only safe drivers will be allowed to be covered under these plans and since risky drivers are being rejected, the overall cost is significantly reduced and every accepted policyholder gets to pay lesser monthly premiums. However, not many insurers specialized in providing such programs to provide cheap car insurance for new drivers and it may not be available in your state. Moreover this only applies for new but competent and careful drivers in order to pass these examinations.
The onus to maintain a clean driving history is the most important to getting cheap car insurance for new drivers in future. It does not matter how much you do now to lower the premium rates because the moment you get into an accident and the other party makes a claim on your young car insurance policy, your new rates can be adjusted by up to another 100%.
On the other hand, if you drive carefully without any accidents or speeding tickets, by the time you reach 19 years old, your insurance rates for young drivers will have dropped by up to 35%. At 21 years old, you get yet another 25% off. The message here is that the most effective strategy is to drive carefully, maintain a clean history and you will end up with the cheapest insurance for young drivers.
Some insurance companies for young drivers also make special provisions for their new clients. They have in-house training and test sessions to evaluate the risk profile of applicants for car insurance under 25 years old.
Only safe drivers will be allowed to be covered under these plans and since risky drivers are being rejected, the overall cost is significantly reduced and every accepted policyholder gets to pay lesser monthly premiums. However, not many insurers specialized in providing such programs to provide cheap car insurance for new drivers and it may not be available in your state. Moreover this only applies for new but competent and careful drivers in order to pass these examinations.
The onus to maintain a clean driving history is the most important to getting cheap car insurance for new drivers in future. It does not matter how much you do now to lower the premium rates because the moment you get into an accident and the other party makes a claim on your young car insurance policy, your new rates can be adjusted by up to another 100%.
On the other hand, if you drive carefully without any accidents or speeding tickets, by the time you reach 19 years old, your insurance rates for young drivers will have dropped by up to 35%. At 21 years old, you get yet another 25% off. The message here is that the most effective strategy is to drive carefully, maintain a clean history and you will end up with the cheapest insurance for young drivers.
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