Teen auto insurance

Young drivers can save car insurance with telematics technology.

Young drivers have always faced the wrath when it comes to car insurance. The soaring car insurance premiums of 30% higher across the board in UK, had most young drivers making the choice of new technology as a means to cut down their car insurance cost. This technology is none other than ‘ Telematics”

What is Telematics and how does it help save car insurance for young drivers?

Telematics uses an in-car box that records and analyses your driving style and provides information that can be used to personalize premiums. In the UK Several insurers are introducing telematics to encourage younger drivers in particular to drive less aggressively and earn reduced premiums as a result. The logic is simple: careful drivers make better insurance risks. But the technology has come down in price so much that a mass-market rollout is getting closer, with devotees claiming it can reduce insurance premiums, lower driving costs and improve driver safety.
For example, Insurethebox, an online telematics-based insurer which launched last year, says two-thirds of its policyholders who received renewal notices in July and August were offered reductions in their premiums as a result of using the technology. Some of the savings topped £800, it says, with average reductions of 22 per cent (see case study). This is huge.

Allstate insurance and Progressive have launched this in USA.

The Allstate program is known as Drive Wise. Allstate uses a small device that plugs directly into an electronic port on the vehicle. This collects certain information about the way the policyholder drives.
According to Allstate, the device only collects information that could be used in calculating a policyholder’s rating. These pieces of information include when and how far a policyholder drives and whether he or she exceeds an 80 mph speed or slams on the brakes at any point. This data will then be made accessible to users through the Allstate website. The person opting in for this is offered a 10% discount upfront, which can be hiked up to 30% based on the mileage driven and record generated at the end of the year. Presently this is applicable only in the Province of Illinois

Young drivers in the province of Illinois can really take advantage of this offer from Allstate.

Stay tuned with us, since we are going to inform young drivers on saving car insurance with other options and programs- the one from Progressive. Besides this there is going to be held a Telematics conference in USA and we will be informing you about the interesting aspects of interest to you. Great ways how you can save car insurances soon.

Teen auto insurance

Teen auto insurance

Eric Rockfeller : Are auto insurance discounts offered to college students? How can one get more discounts?

Cheap car insurance quotes for college students.

Response: Most certainly college students would qualify for auto insurance discounts and cheap car insurances just like any other drivers. What you need to remember is that the discounts would differ for each category. The truth is that college students enjoy more discounts than other normal drivers and they get additional discounts like:

1. Being an additional driver on their parent’s policy. Living with parents and remaining on their policy often is the easiest way to find cheap car insurance for college students.
2. Good student’s discount: College students who earn a grade point average of a “B” or better are often given good student discount auto insurance.
3. Group discount of being a member of the college or institute based on which insurance company they have tied up with. Some colleges or institutes have a tie up with certain insurance companies for all their insurance needs and these companies offer an additional group discount to students for their insurances. However, it is still advisable to compare auto insurance rates since the basic rate of the insurance company might be higher.
4. Defensive driver education course discount is offered to college students or young drivers or teens for taking up this course. Some insurance companies offer up to 15% discounts on this.

Additional common auto insurance discounts:

5. Low mileage discounts: Low mileage discounts can be obtained for those who commute a short distance to work and school. With the new technology online this is very easy since insurance companies offering drive as you go polices or GPS to track your mileage.
6. Increasing your deductible limits would help you in reducing auto insurance premium and getting cheap auto insurance quotes. The higher the deductible the lower will be the auto insurance premium.
7. Get multiple quotes online to find cheap insurance for young drivers without having to fill out the same information for each company. Also if you go for multiple coverages with the same insurer you will get higher discount. Buy home and auto insurance from the same insurance company.
8. Keep a good credit score and you will be rewarded with discounts or cheap car insurance quotes.
9. Most important is that you should establish a good driver history. A good drivers discount of 20% is given to a driver who has been licensed for at least three years, has not had accumulated more than one “violation point” against their driving record, have not been found liable for an accident which resulted in a death or injury and have not had a conviction for driving under the influence of drugs or alcohol in the past seven years. Therefore, it is very important to to always obey traffic laws and practice safe driving at all times to maintain a clean record Never drive intoxicated. A Driving Under the Influence (DUI) conviction may result in a young driver not qualifying for car insurance policies offered by reputable inexpensive companies.
10. Air Bags and Automatic Seat Belts: There are insurers which will apply a reduction to a premium of up to 30% on Personal Injury Protection (PIP) and Medical Payments for having these safety features. The basic principle behind this is because if an insured is involved in an accident these features can prevent the risk of injury or lower the amount of injuries sustained by the policyholder and/or passengers.
11. Anti-Theft Devices: Companies offer a lower rate on Comprehensive coverage to those who own a vehicle equipped with low-jack, a GPS tracking system or an alarm. There are two reasons for this. The first is that an alarm can deter a thief if it is activated which in turn may stop them from stealing the automobile. Secondly, if a vehicle is stolen and it can be tracked, it raises the chances of recovering vehicles and the automobiles being recovered in a timely fashion which can result in minimum damage. This will save the insurer a significant amount of money if a claim is filed and the automobile is recovered before it can be stripped or destroyed. The savings on coverage are usually in the area of 5% which may not seem like much but in combination with others it can add up.
12. Anti-Lock Brakes (ABS): Having anti-lock brakes can enhance the ability to stop before striking another vehicle and therefore can offer a rate reduction of 5% or more on Property Damage and Bodily Injury policies

Remember that you will get a maximum discount of 40-45% overall even though you qualify for a lot of discounts. This is because most insurance companies do not allow overall discounts higher than this and there is a cap on the maximum allowable discounts. However, you can rest assured that you will win cheap auto insurance quotes.

Thanks.
Kamlesh

Teen auto insurance