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Monthly Archives: May 2018

Student Auto Insurance

1. Stay on your Parents Policy

Unless you are making serious money and can afford super high premiums, talk to your parents about adding your car onto their policy. This will save you about 20% or more. Bundling multiple automobiles is a simple way to save and this includes students living on a tight budget.

2. Get Several Discounts

As a young driver, you might be thinking there are no discounts available for you. This is simply not true. If you have a solid GPA of a B or higher, you automatically qualify for a price break. Getting top grades will not only help you get a good job later on, but will lower your premiums about 5% or more. So why do insurers give lower rates to students with good grades? The secret is in the data. Auto insurance companies have compiled a huge amount of statistical data about accidents. There is a direct link between people who are disciplined and responsible academically and lower vehicle crashes. Car insurance premiums are based on the perceived risk associated with a driver, based on a person’s profile. After you finish school, you can continue to get these discounted pricing for up to a year, which is another incentive to get good grades.

To get this discount, students need to meet several qualifications. These include:

* Most auto insurers offer these special prices to students that have and maintain a G-P-A of a B or higher during the school year. The old adage of hard work pays is absolutely true.

* You need to be an active full-time student at a high school or college.

* Most car insurance companies put a cap on this discount at 25.

If you are reading this as a parent, talk to your kid about using this as a motivation for getting great grades. Reward them with something special, like a night out at a special restaurant, if they come home with a good report card.

3. Take a Certified Safe Driver Class

A great way for students to both learn about safe driving and lower their rates is by taking a driver safety class. Usually, the classes are held by retired highway patrol police officers who will share their amazing tips on how to stay safe on the road. You will learn how to drive carefully in rainy weather, snow and what to do to avoid accidents to name a few lessons. After you complete a certified class, call your provider and ask for this discount. Many companies will give an automatic 10% price reduction.

Uninsured Driver

When Sally was hit from behind she sustained serious injuries. She was able to utilize her own auto insurance policy to pay for medical costs because the state where the accident happened was a no fault state. Essentially, this means that almost every insurance policy must provide any drivers or passengers in the insured vehicle medical payments coverage up to $50,000. This coverage is commonly referred to personal injury protection, or PIP. A policyholder can purchase more PIP coverage above and beyond the standard $50K if they so choose. In Sally’s case, her policy only afforded her $50,000 of personal injury protection at the time.

After she exhausted her PIP coverage, she met with a lawyer about suing Jimmy for pain and suffering and making a claim on Jimmy’s policy, but Jimmy was driving uninsured at the time! Even still, Sally decided to sue Jimmy after all and go after his personal assets. After a lengthy court battle, Sally’s pain and suffering was valued at about $200,000 by a court of law and a judgement was issued against Jimmy. To Sally’s chagrin, Jimmy had no assets so his wages were set to be garnished whenever he got back to work (which wouldn’t be anytime soon)! Sally’s medical bills went far beyond the $50,000 that she received through her PIP coverage. Sally also did not have health insurance at the time and didn’t have a lot of money herself. So how was Sally supposed to pay for all of her bills? She certainly wasn’t going to wait around for Jimmy to get a job!

Well, insurance policies typically have another standard coverage called Supplemental Uninsured/Underinsured Motorists Liability (aka SUM coverage). At the time of the accident, Sally’s policy only had the minimum required SUM coverage, which is $25,000 per person and $50,000 per accident in her state. Basically, this coverage paid out $25,000 to Sally for her pain and suffering (which mainly went to her medical payment costs) but she was still on the short end of the stick for all the medical payment costs she had incurred. Could she have had more of this coverage? How does SUM coverage work?

Supplemental Uninsured/Underinsured Motorists Liability (SUM) coverage is auto insurance coverage that is mandatory on all car insurance policies in many states. The purpose of this coverage is to protect people who are either hit by a vehicle with a driver who has little to no insurance, or involved in a hit and run accident. In the example of Sally and Jimmy, Jimmy had no auto insurance at all. So, the SUM coverage on Sally’s policy is there to pay for her pain and suffering in the case that she is unable to collect from Jimmy’s insurance.

Get Cheap Car Insurance in UK

1. Compare the insurance market. There are many online portals that can take your data and query hundreds of insurance companies within minutes, giving you a list of the cheapest car insurance companies. Still, you must be vigilant: make sure that when getting a quote you get all the services you are interested in and the amount of insurance you need. Typically, your insurance policy consists of two parts: a voluntary contribution and compulsory. The higher your voluntary contribution, the lower your premium will be. In case of an accident, you’ll first have to pay this amount and only then you will have access to the benefits of your insurance.

2. Add a second driver. It’s better to add a spouse or partner-or in extreme cases, parents-who have driving experience in England. If you add a relative to your insurance policy with limited driving experience in the UK, your insurance may increase as insurers may perceive this person to be a liability.

3. Protect your No Claim Bonus. For each full year you go without making a claim, you accrue a No Claim Bonus. Unfortunately, this feature is available only after 4 years of flawless driving. Accidents caused by another driver usually does not affect your insurance.

4. Install an alarm or immobilizer. If your car has an alarm or immobilizer installed, you can get a discount on insurance in the amount of 5%. It is important that the installation of the system is made by certified professionals, otherwise insurers are not likely to take it into account.

5. Do not add a young, inexperienced driver to your insurance. New drivers are potentially dangerous on the road due to lack of driving experience.

Save on Car Insurance Premiums

When buying motor insurance you should compare quotes of the different insurance companies. This is the most convenient way to zero down on the best policy. You can find insurance quotes online which makes your search hassle free. To get car insurance online, make sure that you are getting the best value for your money.

You can save money if you insure more than one vehicle with the same insurance company. In this way, you can save money on each policy and this helps to save on the premium.

There is a general thumb rule for most insurance policies which says the higher your deductible is, the lower your premium will be. So, as long as you can afford to incur some loss from your pocket, you should opt for high deductibles.

You can always get hold of your car insurance policy along with the other insurance policies that you need to buy. While doing so, the chances of getting a good discount from the insurers increase and help you to save money.

Driving carefully and meticulously is one of the best ways to reduce premiums. If you drive well and follow all the traffic rules, chances of getting any tickets from the police or meeting with an accident are less. This will also have an impact on the insurance premium.

There are some companies which calculate the premium on the basis of the kilometers you drive. In such a scenario, it is better to opt for systems like the car pool on a regular basis so that the usage of the car is less and you are in a position to get discounts from the insurance companies.

Installation of an anti theft device in the car is a good thing to do too, as this reduces the chances of the car getting stolen. With these security measures in place, you will find plenty of insurance companies that can give you lucrative discounts.