Is Budget Car Insurance Cost Effective?

Budget car insurance is widely available on plenty of broker quote sites online.

If you have really good credit, you will automatically pay a lot less for car insurance than most people. Most insurance companies will pull a copy of your credit report as a matter of prudence.

It has been proven that there is a direct relation between your credit score and how likely it is that you will file an insurance claim with an insurance company. This means that if you are a high claimer and are looking for budget car insurance, it may prove difficult.

If you are seeking budget car insurance you could be construed as high risk.

In addition, your insurance company wants to know that you will pay your bills on time, so if your credit score shows that you pay bills late as a matter of routine, you may have some problems getting budget insurance.

Unfortunately, a lot of companies will judge you automatically via your credit score, including budget car insurance companies.

If you drive a fancy car, you can expect to pay more for insurance. New cars cost more to fix, so do expensive cars. Don’t expect to get great budget car insurance if you drive a luxury car.

Some auto insurers have a rating system according to your car make and model. Each car has a number on that rating system from 1 to 27. Factored into these numbers are risk factors such as theft and also the overall safety of the vehicle. For example, older model cars that do not have air bags will probably be more costly to ensure as well therefore budget insurance will not fit this criterion.

If you find what you think is really cheap budget insurance, pay special attention to the “hidden” costs. If you are paying via installment payments, you can definitely expect to pay a lot more over the long run because of administrative costs and interest that are factored into those payments.

When you get a budget car insurance quote, read the fine details.

Sometimes what you think is a good deal for budget car insurance may not be in the end.

If you have a newer vehicle, for example, find out what value your insurance company considers “replacement value” on your car. It may be worth it to pay a little extra to get the value of your vehicle at the time you insure it, rather than the blue book value. It may surprise you to find out that most insurance companies will not give you replacement value if you write your car off.

If you switch insurers, be sure to cancel the existing policy you have with your previous insurer, or you may end up paying both policies. Just because you decide to go with a lower cost policy does not mean that your previous insurer will automatically cancel your insurance policy.

It is a good idea to be aware of all the ins and outs of a lower cost insurance policy. Just because you are paying less for the cheapest car insurance does not mean that you are getting the best deal in the long run.

Due diligence is a must as budget insurance may not be the best option.

Cheapest Car Insurance For a Teenage Boy – 3 Tips

Every teenage boy starts dreaming of buying his first car at least a few years before he is of driving age. For a teenage boy, car ownership means freedom. It means being cool. And, it means having fun.

For parents of teenagers who ready to buy their first car, it seems like a mixed blessing. On the one hand, there is the excitement and pride the parents feel that their child is slowly become an adult, with car ownership representing another milestone toward adulthood. On the other hand, the parent of a teen who is about to buy an automobile may be feeling concerned about their child’s safety – and maybe even about losing a bit of control over this young person’s life.

And then there is the question of car insurance. There are two main reasons to buy car insurance for your teenager: 1. It is required by law; 2. It is the right thing to do.

As someone shopping for car insurance for a young person, your challenge will be walking the line between buying enough car insurance while getting the cheapest insurance possible.

Here are 3 tips on getting the cheapest car insurance for a teenage boy:

Tip #1: At Minimum You Need Liability Insurance

Minimum requirements for automobile insurance vary by state. But, in most or all cases, you will at the very least need to purchase liability insurance. Liability insurance covers the other party’s property and medical expenses should you be responsible for an auto accident.

Usually, the minimum requirements for liability insurance will be listed as in the following format: 25/50/25. In this case, this would mean $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $25,000 for vehicle damage coverage per accident. (Be sure to check online for your state’s minimum requirements).

Remember, buying the minimum amount of insurance required by your state may not be enough in your case. Take into account the area you live in, the value of your car, and even your family’s net worth (in case of a potential future lawsuit after an accident) when determining the amount of your liability coverage.

Tip #2: Consider A Higher Deductible For Comprehensive & Collision

In most cases, teenage boys do not purchase new cars. Rather, they favor whatever they can afford, which is usually a used car. While going used may not be the teenage boy’s top choice for a type of car, buying used does have its advantages. By having a less-expensive car, the teenage boy may be in a better position to elect a higher deductible* on their insurance.

* a deductible is simply the amount you pay “out of pocket” after an accident that is your own fault or if you experience road damage. The more you are willing to pay out of pocket, the lower your comprehensive (which covers non-accident-related damage and theft) and collision (which covers your car if you cause an accident) insurance will be. Going higher on the deductible may make sense for a cheaper car – especially one in which you may not mind getting a few small dings in now and then.

Tip #3: Shop At Least 5 Insurance Companies To Get Best Rates

Many people rush out to buy car insurance for their teenagers by adding them to their own policies. This is not always the best option, however. In fact, whenever someone in the family is getting new car insurance for the first time, it is a good idea to shop around first.

It is smart to find at least 5 new auto insurance companies online and apply to at least 3 of them. This is the best way to increase your chances of securing the best rate, since having more choices is always better than having fewer. Insurance company rates can vary quite a bit from one to the next, so be sure not to skip this step.

Follow these 3 tips to find the cheapest car insurance for a teenage boy.

Options For Classic Car Insurance?

Classic car insurance differs from standard car insurance in several ways. It is less expensive than standard insurance, has specific feature requirements and may not be the best option for classic cars that are still in daily use. The value of the car, age of the owner, miles driven, housing and age of the car are all criteria that need to be met. Collector vehicles get such low rates of insurance because they are rarely driven, are exceptionally well maintained and usually increase in value over time. If you think classic car insurance is right for your car and lifestyle, you need to know the details of this type of insurance.

If you have a classic car, one that was manufactured between 1973 and 15 years ago, you may be eligible for classic car insurance. This is a much better option than putting your classic car on your regular auto insurance policy. You can protect the investment of a classic and have lower premiums.

The criteria that must be met may vary from company to company, but they will all want to know the age of the driver, the mileage on the car, how the car is housed when it is not in use and the age of the vehicle. There are specialized classic car insurance companies that will cover drivers 21 years or older, but most companies require the driver to be over 25 years. If you car is well protected from thieves or weather, it has a better chance of getting lower premiums.

Another difference between standard auto insurance coverage and classic car coverage is the value of the car along with depreciation. Standard car insurance covers the current value of the car, minus depreciation. The older the car gets, the less it is worth. A classic or vintage car does not depreciate in value over time. If the car is well maintained and rarely driven, the value will increase with time.

This different situation is why there are specialty insurers. Usually, the insurer and the owner will agree on the value of the car. This is called Agreed Value Coverage and may be based on an independent assessment of the value of the classic car. The insurance coverage will include the agreed value of the car which will be stated on the policy, and will add the appreciation value at the time of loss.

Finally, some car specialty insurers will exclude deductibles or have very low deductibles for collision and comprehensive coverage. They may even cover spare parts and accessories that your classic car does not have at the time. This is very specific to classic or vintage cars because they are more like art objects than running vehicles and are used very little. Standard auto insurance will not give this kind of special coverage.

For car models over 15 years old that are not driven much and are owned by an older person, insurance is a much cheaper option for car insurance.