For a teenager, a car represents a lot of things, including personal freedom, the chance to express a personal sense of style, and a very practical means to get around town and get things done. And, for those teens who have purchased their own car and who work odd jobs in order to maintain it by paying insurance, gas, and maintenance costs, it also represents the opportunity to show how responsible they can be.
For parents, feelings about their teen’s car usually are mixed. On the one hand, the parent is proud of the teen as a new driver – and doesn’t mind having someone else around to go fetch a gallon of milk at the store now and then. On the flipside of all of those positive feelings are some potential downers for the parent, including worry over their teen’s inexperience in driving. And, they also think about any expenses the parent may have to shoulder, like car insurance.
What any teen or parent who has shopped for car insurance knows is that average insurance rates vary greatly by the car model being shopped for. For anyone looking to save money in auto insurance, it is wise to know which types of models are the most and least-costly before the car is purchased. But, who is in charge of the complex task of figuring out how much to charge clients who drive each type of car? Enter the actuary.
Actuaries are those accountant-like number crunchers with very thick glasses (okay, this is a bit of a generalization but you get the idea). Their job is to create actuarial tables that, based upon a huge numbers of variables, determine how much to charge each person for insurance. In terms of car models, actuaries take into account about 5 factors to determine rates.
If you are looking for the car with the cheapest insurance rate for a teen, learn about these 5 factors that influence car insurance rates:
1. Sticker price:
There is a strong correlation between car sticker price and insurance premiums. The more the potential total cost of the loss that the insurance company would have to pay, the higher the rate.
2. Degree of car-driving pleasure:
The more that the car is built to be fun to drive, the higher the rates. Sound like a cruel insurance industry trick? This rule of thumb actually has some very sensible underpinnings. Cars with more horsepower and sport-tuned suspension are going to be driven harder and more dangerously, on average. Think of the danger factor in mini-van vs. Porsche.
3. Profile of the average person who drives that car:
Insurance companies keep tabs on profiles of what the average driver of each given model is like. They base their rates in part on this profile. What drives up costs are profiles with factors like the tendency for driving during peak commuting hours, driving at night, and driving aggressively.
4. Loss history for that model determines collision and comprehensive rates:
Those models that tend to be involved in more accidents are accompanied by higher insurance rates. Makes perfect sense, doesn’t it?
5. Safety record and features:
Cars with a better safety record and which are equipped with more safety features naturally pose lower medical bill-related claims risks and are therefore cheaper to insure.
Keep these 5 factors in mind as you look for the car with the cheapest insurance rate for teens.
When you are looking for the cheapest car insurance rates, it is very easy to be taken in by an ad, calling the company, and signing right up. Why are we all so easily duped by good advertising? Because these big companies have deep enough pockets to put the best writers on the job.
But, if you stop to think about it for a moment, it just doesn’t make sense to passively wait until you see a catchy advertisement as the way you choose a car insurance provider. There has to be a better, more scientific, and more effective way to get the best deal.
Luckily, there is: it’s conducting an effective search.
Why It Pays To Search Intelligently For The Cheapest Car Insurance
So, it is pretty clear why passively waiting for a good insurance deal to fall into your lap may not be the way to secure the best-possible rates. But, why search? Simple: knowing how to systematically look for, organize, record and compare your findings is simply the most all-encompassing, effective way to find the best deal.
Insure Your Car With The Cheapest Insurance Rate: Search Tips
Here are 3 tips that can help you conduct an effective search the results in the lowest-possible car insurance rates:
1. Diversify your search through multiple media:
For your research, you are going to want to build a list of at least 5-10 promising looking insurance providers to start with. Anything less and you will be potentially short-changing yourself. You are going to want to start with online research, but be sure to use every tool in your toolbox, including contacting friends and family to find out if they are happy with their insurance companies. If you see a great ad on TV – by all means – add the company name to your list. The point is: do not rely on just one source for your information.
2. Organize and record your findings:
As you put together the information you come across, put it into an organized format such as a spreadsheet application like Excel. For example, at the minimum you should be recording the company name, contact information, and any advertised deals or promotions you saw. Leave a space for the quote information you see, as well.
3. Good research also includes contacting insurance companies for quotes:
Of course, your research should include not only reading about each company on their website: you need to actually contact at least 3-5 of the best auto insurance companies you come across. Get quotes from each one. Important: be sure to get quotes for identical types of coverage from each company so that you get comparable quotes.
By following these 3 tips for how to search for the cheapest auto insurance rates the right way, you will give yourself a much better chance of ending up with the right deal.
Source: http://EzineArticles.com/4610840 http://EzineArticles.com/4940859