Daily Archives: January 31, 2009

Factors That Affect Car Insurance

Reader’s Question:

I’m almost ready to buy my first car. I just need to know the factors that would affect my car insurance.

Josh

Tampa, FL

A: I’m glad you asked before you purchase your first car since the first factor that could affect your car insurance is the type and model of your car. So if you plan to buy an expensive car, think again because it will surely have an equivalent of high insurance cost. Remember to look for the average cars like the sedans and ignore the big and expensive type of vehicle.

I assume you already droved a vehicle before. Your driving background is also a factor and it will affect your car insurance also. If you have a history of car accident or even minor violations such as traffic tickets, be ready because it will more likely increase your insurance cost.

Another factor is the mileage your car will consume. So I’d suggest that you use your car for important occasions. If you can maintain a low mileage, you are eligible for a low mileage discount, once an auto insurance company knows that you spend less time on the road it automatically means small chance of getting into an accident thus cheap car insurance.

Lastly, your age will affect your car insurance rate. Insurance rate depends on the age of the driver. Young drivers will acquire expensive insurance rate while mature or older drivers have an advantage of acquiring the cheaper ones.

These are the factors that will determine your car insurance cost.

Ways In Getting Cheap Car Insurance For Teen Drivers

Reader’s Question:

My daughter is turning 17 two months from now. Aside from buying her first car, I will also be adding her under my car insurance policy. I’m anticipating a very big increase on my car insurance premiums. From what I heard, adding a teen driver will surely increase my auto insurance rates. It’s my first time to add a teen driver so there are still a lot of things that I don’t know. Can you help me find ways on how to get cheap car insurance for teen drivers?

Millie

Birmingham, AL

Help is here so you don’t have to worry Millie.

Adding a teen driver on your car insurance policy will always result in getting higher car insurance rates. We all know that teen drivers are high risk drivers. Thus having them insured is somewhat pricy. But, there are still a lot of factors that affect car insurance rates. And with a little help from you daughter, you’ll surely get cheap car insurance for teen drivers.

You may be able to lower down your auto insurance rates if you will:

* Enroll your daughter in a defensive driving school;
* Demand her to get good grades, a B average or better;
* Have her under your policy, since getting separate auto insurance for her is more expensive;
* Purchase a low cost car for her, since fancy cars are a big no no!
* Teach her the importance of driving less, since driving miles is directly proportional to car insurance rates.

For additional information on how you can get cheap car insurance for teen drivers, you can always ask your car insurance agent or even the Alabama Department of Insurance.