Cheap Vehicle Insurance

Reader’s Question:

I bought a used car. Will it be easy for me to find the cheapest vehicle insurance for it?

Rick

Las Vegas, NV

Getting a used car insured is pretty much the same as insuring one that’s brand-new except that your chances of getting the cheapest vehicle insurance is possibly bigger. Whenever an insured car gets stolen or damaged to the point where the cost of repairing it becomes more expensive than the car itself, that car is said to be written off. Since a used car has far lesser value compared to a brand-new one, the insurer’s losses will also be relatively less. Should you buy comprehensive and collision coverage for it, the car insurance company should therefore also charge you less. Actually, some used car owners forego getting comprehensive coverage altogether as this isn’t part of the state’s minimum requirements for car insurance. So used car owners are likely part of the lucky few who get to pay the cheapest vehicle insurance. One more thing about used cars that increases your chances of getting the cheapest vehicle insurance is that you can raise your deductibles. Higher deductibles mean lower premiums. It doesn’t make much financial sense to spend too much on ensuring thorough repairs for a car that already has some wear and tear on it. A used car however can cause just as much damage or bodily injury as one that’s brand new so your rates for liability coverage won’t really be affected.

Reader’s Question:

Can you explain what factors affect vehicle insurance premium? Thanks!

Timmy

Bowling Green, KY

In short sentences, I will explain to you what I know. Let me first start with Classifications. Classifications that are used as basis for your vehicle insurance premium are: the vehicle – type and model, age, and actual cash value (ACV); driver – age, marital status, gender, driving record, profile report, and location of residence; and the type of coverage – liability, comprehensive, collision, deductibles, etc.

Teenagers or senior citizens, for example, belong to different “age groups.” Now, these are groupings under special classification or groups being categorized above or below from average. A change or variation from this grouping, like for instance, a shift from one group to the other will determine the cost of your annual or monthly vehicle insurance premium. And also, a variance or change on your group would determine your assigned risk level.

In summary, factors are divided into three classifications: the vehicle, the driver, and the type of coverage. These classifications are further classified and broken down to details such as age, type of model and make, manufacturer for the vehicle; age, gender, marital status, profile of the driver; and the type of coverage such as collision, comprehensive, etc.

I hope I answered your question, Timmy.

Reader’s Question:

Car cheap female insurance young student needs auto insurance. When my daughter moves out to go to college would she needs to get her own car insurance?

Jay

Birmingham, AL

If your daughter moves out of your home permanently, then she really has to get her own insurance come insurance review time. This is because she will no longer be a part of your household, and basically, her car and yours no longer share the same permanent garage address. You did not specify if your daughter would be going to a local university or in another the state. Another thing is if your daughter will have her own driver’s license by the time she moves out. If she’ll have it by then, then that would qualify her to get insured and get her car cheap female insurance young student. Like I said, if the move would be permanent, then go ahead and get her insurance of her own.

However, if it were the other way around, then it would be more practical to continue listing her under your insurance…what with the cost of universities these days, plus the actual cost of her running her own place. This way, you can still get the necessary discounts for your policy by listing another driver, kinda like a multiple driver discount.

If your daughter is going to another state for school, better check with your current provider if your coverage is compatible with the requirements of the state. If not, then have them modify her part of the coverage. Some providers make special considerations to customers who have to travel out of their own state on a regular basis. One more thing to look into is if the state requires its permanent residents to have within-state insurance. In that case, you would have to get her one when she moves there.

Reader’s Question:

Why is it so hard to look for cheap vehicle insurance?

Gary

Seattle, WA

Year in, year out, there’s this item that’s a constant thorn on the side of our budget that we just can’t simply pull out – vehicle insurance. It’s an inescapable household cost just like gas, electricity and water. You would think that cheap vehicle insurance would be readily available nowadays with practically all car insurance companies, brokers and agents claiming to offer it. But, of course, each of us has his own idea of what cheap vehicle insurance ought to cost. Those of us who have had to really tighten our belts have the hardest time finding cheap vehicle insurance.

Perhaps cheap vehicle insurance isn’t always to be found; maybe it’s something you have to achieve. You may or may not have tried any of this, but here are a couple of things that might help you save some money. First of all, don’t snatch the first quote you’re offered with. With a little more shopping, you’re likely to find somebody willing to offer you less. Next, raise your deductibles. If you drive carefully enough and only use your car to drive to and from work, road accidents shouldn’t be a frequent feature of your life. Next, don’t buy too much liability coverage. Liability insurance is there to protect your assets. It would be superfluous to take out property and bodily injury coverage that’s way beyond your net worth. Next, Collision coverage and Uninsured Motorist coverage essentially offers the same benefit. If you already have the one, you don’t need the other. Finally, safety features on your car go a long way to getting you discounts. More safety features mean more discounts.

Reader’s Question:

Can you give me some tips on how to get vehicle insurance that’s cheap yet has enough coverage?

Carol

St. Paul, MN

If you want to get vehicle insurance that’s cheap but has enough coverage, you may ask your insurance carrier to give you the minimum insurance required by the state of Minnesota. This minimum insurance requires that you have liability, PIP, underinsured, and uninsured coverage.

The minimum requirement for liability coverage is 30/60/10. This figure stands for $30,000 liability on the bodily injuries of one person, $60,000 bodily injuries of two or more persons (as long as all injuries were acquired in a single accident), and $10,000 worth of liability for physical damages made to other vehicle/s involved and to other property damages.

For Personal Injury Protection (PIP), you should cover $40,000 for each person per accident. This figured is composed of $20,000 worth of medical expenses and $20,000 worth of non-medical expenses like lost wages and replacement fees.

For the underinsured motorist liability, the minimum coverage is $25,000 for bodily injuries of one person and $50,000 for two or more persons.

For the uninsured motorist liability, $25,000 worth of coverage is required for one injured person, and $50,000 is required for two or more persons.

If you think that by getting the just minimum required coverage is not enough for you to get vehicle insurance that’s cheap enough, you may try checking with the insurance company if they offer discounts that are applicable to you.