Restricted License Automobile Coverage

Q: My license was restricted by the court so I am only allowed to drive to, and from, work. Can I get automobile insurance coverage while my license is restricted?

A: Not only can you get automobile insurance coverage while your license is restricted, but you absolutely must.

The court restricted your license, but still allowed you to drive for a period of time each day. While you are on the road your car must be insured in every state except for New Hampshire.

If you are caught driving without insurance and with a restricted license you will lose your restricted license at a bare minimum. It is more likely you will be arrested.

Many states will require you to file a form known as an SR22 while driving with a restricted license. Basically this is a form that your insurance company will send to the state explaining that you are covered. If the policy lapses the insurance company will notify the state immediately.

An SR22 insurance policy will be more expensive, but it is often the only way to legally drive a car while your license is restricted.

You should consult with an attorney to find out the specifics of your case, but our recommendation is to not even consider driving a car without automobile insurance coverage.

We highly recommend that you compare auto insurance quotes from a variety of providers before choosing a policy to meet your needs. This will allow you to purchase the best coverage at the lowest cost.

Car Models With the Lowest Insurance Rates

Many people go out and choose a car to buy based solely on a handful of factors, such as the way it looks, safety ratings, engine power, handling, and perceived quality… and of course, price. However, a handful of cost-conscious and prudent buyers think even a bit further ahead, considering such factors as maintenance costs and the cost of car insurance.

One way to figure out the cost of insurance for each car model you are considering buying is to simply call up your insurance agent and rattle off your list of models. However, that is time-consuming, and it also means you have to keep going back to ask for more information if you get new car model ideas later.

A better way to shop for a car while keeping future insurance premiums in mind is to understand the factors that go into how insurance companies compute premiums based upon differences in car models.

If you are looking for car models with the lowest insurance rates, here are 5 guidelines for finding a car that will save you money on auto insurance:

1. Lower cost equals low insurance premium:

Start by understanding this simple rule: cars that cost less to buy tend to also cost less to insure. So, while the price of the model you are considering will affect how much you pay in monthly auto payments, it will also affect the amount you pay in insurance.

2. Find out how the car ranks in terms of auto thefts:

Quite simply, cars that get stolen more often are more costly to insure. This makes sense, of course: the insurance company anticipates that there is a higher likelihood that your car will get stolen if you buy a frequently-stolen model. This means bigger dollar signs for your premiums.

3. Look at safety ratings:

Cars with more (and more advanced) safety features are always going to garner better safety ratings. And, this will translate to a lower auto insurance premium for you to pay.

4. To save money, avoid sports cars:

Here is another simple rule of thumb for you to follow: do not buy a sports car! Sports cars are usually driven harder and faster by their owners, which means a better chance of getting into a costly accident. And, of course, insurance companies know this.

5. Keep your premiums down by buying a less fun-to-drive car:

Your insurance premiums will also be kept as low as possible if you find a car that is not known for being fun to drive. For example, think mini-vans.

The bottom line is this: you will always pay lower premiums for cars that are less fun to drive but rather that are driven because people have to. Soccer moms driving boring-old minivans with great safety ratings are going to always be cheapest to insure.

Meanwhile, automobiles that are a blast to drive – think a Porsche or a souped-up Camero – are also going to cost you a pretty penny to insure. Once you understand these 5 guidelines, narrow your choices down to 2-3 car models; then, go ahead and call your insurance agent for comparison quotes before you buy.

The Piggyback Method of Car Insurance For Teenagers

Car insurance for teenagers tends to be excessively high. Auto insurance companies see young drivers as more risky, and therefore have to charge them much more expensive insurance premiums.

For a driver that has no driving experience, there’s very little that can be done to show the insurance a lower image of your risk.

The only thing that first time auto insurers can do is something called “piggybacking.”

To piggyback, you are going to add your name and vehicle onto someone else’s auto insurance policy, as opposed to starting your own policy. You can generally only piggyback on spouse or parents’ car insurance. The savings over getting your own insurance is phenomenal. Some drivers pay up 50% less of what it would have cost them to get in their own name.

The longer your parents have been upstanding policy owners, the greater the savings you’ll get. Over the course of twelve months, the amount of money you will have saved will be in the hundreds of dollars.

The only negative is convincing your parents to add you onto their policy. My suggestion is to tell them that you will pay for the month in advance. Maybe pay two months in advance. Trust me, the money you’ll keep in your pocket will definitely make it worth the trouble.

The first step in getting cheaper car insurance for teenagers should start with the piggyback method. Convincing your parents to add you onto their auto insurance policy will result in a fantastic rate for you. The savings over getting the policy yourself will be significant.


How to Get Cheap Car Insurance For Teenage Boys

With so many car insurance companies and the many types of coverage plans, shopping for a policy for your teenage boy can be confusing to say the least. Many factors determine the amount you pay for car insurance for teenage boys. Some of the more important ones are the type of car they drive, their driving skills and even where you live in America can be a factor. Even though some factors that determine your rates are out of your control, there are still several things you can do to insure that you get a below average premium rate for your insurance provider.

1. Increase the amount of the deductible you pay.

Higher deductibles are especially effective for lowering the rates for younger drivers. The deductible is the amount you pay before your insurance kicks in. It can range from as little as $0 to $1,000 or more. By paying a higher deductible amount, you can lower the premiums quite a bit for your teenage driver. Not all insurance companies are the same however so make so check with your agent to find out how your deductible can affect your rates.

3. Inquire about available discounts.

Most companies will give you discounts for different things. For example, if you have a homeowner policy and auto insurance policy with the same company, many times this will earn you a discount. Also if you insure more than one vehicle with the same company they will give you a discount.

Most insurance companies will offer discounts for students who maintain a higher than average grade point average on their report card. Also if your student driver has completed an approved driver training program they may qualify for lower rates. Make sure that you ask your agent about all of these discounts because they will not always offer up the information without being asked.

3. Teach your teenage boy about the value of a good driving record.

A new driver with no current driving record will not qualify for a safe driver discount, but make sure that he knows the importance of starting out right. After three or four years of maintaining a good driving record he could qualify for discounts that can end up saving thousands of dollars over time.

4. Adjust your coverage for an older car.

If your teenager is driving an older, safe car, you should consider dropping the collision portion of your coverage. If the book value of the car he is driving is less than the cost of repairing or replacing it, you can save a lot of money by just having liability coverage to cover the cost of damages to other people’s property and personal loss.

You can determine the value of your car easily by going online to one of the many free car appraisal websites on the internet. Insurance companies usually use the NADA book value to determine the value of your wrecked vehicle. These are four very simple but effective guidelines to making sure that you do not spend more money than is absolutely necessary when searching for car insurance for teenage boys.

All About Car Insurance Policies and Insurance Rate Comparisons

Having car insurance policies is essential because it covers the risk on an automobile. Car insurance offers financial security for any damage to the car caused by a vehicle.

It provides protection from the following:

  • It protects you from purchasing a new car if in case someone stoles your old car
  • It covers the cost of repairing the car if damaged in an accident
  • Cost of lost wages and medical expenses related to the use, ownership and maintenance of an automobile
  • Medical expenses not covered by PIP (personal injury protection)

In several countries, it is mandatory for the driver to have car insurance when driving on the public roads. Liability coverage is an important aspect of insurance policy. However, liability coverage is applicable only when the insurance holder drives his own car.In many countries, prices of car insurance depend on various risk factors such as:

  • The usage of the car (calculated annual distance driven)
  • Characteristics of car
  • Credit rating
  • Coverage selected (deductible, limit, covered perils)
  • Age and sex of the driver
  • Driving history

Sometimes, these insurance plans also have flat rate, irrespective of the car usage. Other ways of fixing premium prices includes odometer-based systems, OBDII-based systems, reasonable estimation, GPS-based systems and many more.Keep the following main aspects in mind while buying car insurance policies:

  • Policy limit per person
  • Liabilities such as property damage liability, bodily injury liability etc.
  • Coverage
  • Policy limits per person

While selecting an insurance company, look for the following:

  • Payment practice of the insurance company
  • Any complaints registered with the state insurance commissioner
  • Other features like denial of arbitration right during UIM claims and denial of medical expenses.

Car insurance rates comparison

Car insurance rates vary from company to company even for the same insurance policy. When buying insurance for your car, you can save money by comparing the rates of different companies. You can do this by surfing the internet or by visiting different insurance companies.

Compare insurance rates easily on the internet

One of the easiest and the fastest way to compare different insurance rates is to visit an insurance rate comparison website. Here you can get insurance rate of several A grade insurance companies. At an insurance rate comparison website, you have to register your driving and vehicle information on a form. After entering this information, a list of insurance rates from several companies will appear before you. Thereafter, you can compare these rates and select the one that suits you.

Selecting a Company

Once you have insurance rates, the next step is to select an insurance company. At times, you may doubt whether insurance comparison rates available on the internet are accurate or not. However, these quotes are accurate. Insurance company websites only offers rates from A- grade insurance companies. To check the company’s reliability you can do the following:

  • Visit the company’s website and check if it is helpful and informative
  • Check the website of the Department of Insurance to know about the complaints that customers have filed against the company

These extra measures not only helps you in selecting the right insurance company but also helps in getting cheap car insurance rates.