Teenager Car Insurance
Why do I need a Teenager Car Insurance?
The first thing you should know is that you must complete driver education to be eligible for a probationary license.
To drive legally you also must comply with a law called “Financial Responsibility”. This law requires each driver to demonstrate an ability to pay for injuries to other people or damages to other people’s property if the driver causes an accident.
Most drivers comply with the financial responsibility law by purchasing car insurance. Types of coverage under auto insurance are described below:
• Liability insurance pays claims if you hurt someone else or damage another’s property.
• Uninsured motorists coverage pays claims for your injuries and damage to your vehicle if a driver without insurance hits you.
• Collision coverage (if you buy it) pays you if your own vehicle is damaged.
• Medical expense coverage (if you buy it) pays medical expenses for you and your passengers.
If you don’t have teenager car insurance, you could end up spending a lot more than the insurance would have cost.
Anytime you are stopped by a police officer for a traffic violation or other reason, the officer will ask you for financial responsibility proof.
When you buy auto insurance, the company will send you a card as proof that you are insured. Keep the card in your vehicle so you can show it to a police officer when requested.
If you cannot prove financial responsibility your license will be suspended and your vehicle will be impounded. It will cost you a very large sum of money to regain your teenager driving privileges.
Tuesday, November 18, 2008
Teenager Car Insurance
Friday, November 14, 2008
Motorcycles Insurance
Motorcycles Insurance
A motorcycle owner and driver is required to carry the same minimum amounts of bodily injury protection, property damage and personal injury protection as any other vehicle. But motorcycles insurance companies often suggest different policies for motorcycle owners:
When inquiring about an insurance policy, an agent may give you a quote based on the minimum personal injury protection coverage (PIP) limit of $15,000, but with a $15,000 deductible. That means, unless you deliberately choose otherwise and pay an additional premium, you will essentially have no PIP coverage, as the coverage limit of $15,000 will be reduced to zero by the deductible. Consider other options which come at a higher premium but with lower deductibles.
A motorcycle insurance policy may provide only limited benefits. For example, a lower premium policy may provide medical and lost wage benefits for only those accidents which occur (a) on a highway and (b) when there is actual physical contact with another vehicle. To receive coverage for a greater range of potential accidents, you will likely have to pay higher insurance premiums. Ask your agent about the difference between restricted personal injury protection coverage and unrestricted PIP coverage.
Car Insurance Costs
Car Insurance Costs
Car insurance companies base auto rates on a variety of factors. The premium you pay consists of a “base rate.” The base rate is adjusted based on factors such as your age, sex, marital status, driving pattern, claims history, location, credit history, and the make, model and year of your vehicle. When you shop for car insurance, remember that each company uses these factors differently.
Age: Statistics show drivers under the age of 25 have more accidents than adults between age 25 and 65. As a result, insurers charge young drivers and families with young drivers in the household higher rates. Statistics also show that senior citizens are more likely to be involved in a car accident.
Credit history: Under federal law, car insurance companies can use credit history as one factor that impacts your auto rate. They may assign you an insurance score based on your credit history. They use your score as one factor to decide whether to accept or decline your coverage, or how much to charge you. However, the law limits the use of certain information in credit scoring.
Driving patterns: The number of miles you drive per year can increase your car insurance costs. For example, if you drive a total of 7,000 miles in a year, you will normally pay lower rates than if you drive 15,000 miles in a year. Auto insurance companies consider the distance you commute to work as additional miles you add to your non-commuting, pleasure miles.
Driving record and claims history: Most companies apply a surcharge to drivers involved in an accident or convicted of multiple traffic violations. Likewise, the more claims you file, the more likely your rates will increase.
Gender: Young men under the age of 25 are involved in more accidents per miles driven than any other population group.
Location: A higher number of accidents in a highly populated area will raise both liability and collision premiums. Higher crime rates in urban areas can also raise premiums for comprehensive coverage.
Marital status: Statistically, married couples have fewer car accidents than singles and generally pay lower auto insurance rates.
Vehicle type: Generally, the more expensive your car, the more you will pay for comprehensive and collision coverage. Also, because sports cars and high-performance cars are involved in more accidents, cost more to repair, and are stolen more often, they cost more to insure.
