Drivers

High Risk Drivers Still Have Car Insurance Options

May 10, 2012 · 0 comments

Green check on black boxes Auto insurance companies base premiums on a policyholder’s accident risk, and not every motorist can maintain a perfect driving record. But people who have been in multiple accidents or have been convicted of several moving violations still need auto coverage to legally drive in almost every state. Unfortunately, having a higher accident potential also translates into steeper rates. As a result, getting affordable coverage as a nonstandard driver requires a fair amount of research, and possibly the assistance of state programs.

Being Labeled a High Risk Driver

When coverage providers sell an insurance policy to someone, they assume the possibility of having to pay out a claim if that person is involved in an accident. A high risk driver is someone that an insurer believes has a greater chance of being involved in an accident, or filing a claim. This is determined by carefully examining a wide range of details, including an applicant’s age, gender, location, driving record, vehicle information, and many other facts.

Getting the lowest priced car insurance for high risk drivers involves an extensive amount of shopping because most coverage providers interpret accident risk differently. Although most companies target drivers in the standard and preferred markets, there are some producers who find it profitable to insure people in the nonstandard market. Motorists can often find these companies by taking the time to shop around online, where dozens of sample rates can be viewed at once from a single website.

Helping Nonstandard Motorists Buy Insurance

People who are unable to find vehicle coverage because of their driving records can often rely on state-run placement programs to help them meet insurance requirements. These programs typically work by taking higher risk drivers and assigning them to a participating company. In many states, licensed insurers are all required to share the responsibility of insuring nonstandard drivers through these programs.

Enrolling in these programs, such as the Michigan Automobile Insurance Placement Facility, is a better and more affordable option than driving without any coverage at all. And getting vehicle coverage through a placement program is not a life sentence. Most offenses only stay on a person’s driving record for three years. Avoiding accidents and moving violations can, in time, lead to lower coverage costs.

Source: http://www.onlineautoinsurance.com/low-cost/

Articles – Online Auto Insurance

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Young Drivers Seeking Cheap Car Insurance

March 15, 2012 · 0 comments

Teen with magnifying glass

Studies have shown that motorists under 25 years of age frequently take unnecessary risks while behind the wheel, and are involved in more accidents than drivers in any other age group. Unfortunately for many teenagers, these statistics usually result in higher auto insurance prices. Coverage providers take into account many different details when setting rates, including a motorist’s driving record. Because many younger drivers are inexperienced, companies usually have to rely on statistical information to assess a motorist’s risk of filing a claim.

Research published by the Congressional Quarterly estimates that over 6,000 teenagers die as the result of automobile accidents annually. Additionally, drivers under the age of 25 are statistically more likely to drink and drive than any other age group. This unfortunate information is often the cause of higher priced coverage. To compensate for the additional risk of insuring a high risk teen, many insurers will only offer policies with higher premiums.

Shopping around and comparing multiple quotes may help younger drivers find lower rates. Although insurers generally charge teenagers more for auto protection, each company also interprets risk differently. Getting cheap insurance for young drivers often involves extensive comparisons, but online resources can allow motorists to see dozens of estimates from a single website.

Get Cheap Auto Insurance as a Young Motorist

Apart from comparing quotes, younger drivers can often take advantage of various programs and discounts that can help cut coverage costs. In many states, teenagers are required to take part in a graduated driver licensing program to become fully licensed motorists. Satisfactorily completing one of these courses can better prepare younger drivers for the open road, and can help reduce a motorist’s risk of being involved in an accident. Often insurers will take notice when a younger driver completes their training, and offer a vehicle coverage discount.

In some states, special Insurance Discounts and Driving Courses are available to younger drivers that can help lower coverage costs. For example, in Connecticut teens that have completed an approved driver training course are frequently awarded special savings. Additionally, many insurers will lower policy prices for many different reasons. If a younger motorist can maintain a 3.0 GPA or higher while in school, many insurers will provide additional savings.

One alternative to buying auto insurance for a teenager is to have a younger motorist join a parent or guardian’s policy. This popular option can frequently help teen drivers save money while still meeting state coverage requirements. Although the premium for every vehicle on the same policy will likely increase because of the presence of a higher risk driver, this is still considered an affordable alternative for many teens.

Source: http://www.onlineautoinsurance.com/teenagers/cheapest-young-drivers/

Articles – Online Auto Insurance

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