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The thought of having your son or daughter behind the wheel of a car can be scary. This fear is totally natural, and to be honest, you should be a little scared. New drivers, regardless of how long they’ve been practicing, just don’t have the real world experience to drive a vehicle with 100% safety. Heck, most experienced drivers don’t drive as safely as they should. This is why it is so important to make sure you insure your new driver as soon as they get a license. Not only are you protecting yourself from costs of repairing the damage to your car, others’ cars, and medical bills, but you are also insuring the safety of your child, should the get injured, or worse.

Before receiving their license, it is not required by state law to carry auto insurance. However, as soon as your son or daughter can legally drive alone it is required.

Due to the high risk of a collision with new drivers, the auto insurance companies charge significantly higher to insure these individuals in comparison to insuring yourself. There is a lot you can do to cut costs, while maintaining a high level of coverage, below are the most effective ways to do so.

Insure Them Under Your Current Policy - This is a fast and easy way to lower the costs of insuring your son or daughter. Auto insurance companies will offer a discount for insuring multiple people and vehicles under the same plan.

Good Grades - Getting good grades (B average or higher) will typically qualify a student to receive added discounts. Making them pay the difference until they get their grades up is also a great way to encourage them to study harder.

Get Multiple Quotes - Car insurance costs are constantly changing. Many are surprised to discover that they could have been paying less for auto insurance all along. Our quote tool allows you to get a variety of quotes from different companies to ensure you are getting the best deal available.

Encourage Safe Driving - Auto insurance premiums will drop dramatically as your son or daughter reach critical ages. Assuming they have a good driving record these discounts are increased. Additionally, signing them up for a driver improvement or new driver training course can help you score points with your insurance company.

Choose a Safe Car - Many parents make the mistake of putting their teen behind the wheel behind an expensive and/or fast car. Such cars are extremely expensive to insure, especially with such a limited driving record. Choose a safe car for your child, with all the available safety features. You can also just insure them to use you car, greatly reducing their time behind the wheel and your premiums.

A common misconception surround auto insurance is that having a policy entitles you to all forms of coverage. This is far from the truth. As a s result, when many turn to their car insurer, they get turned away because they aren’t covered in their particular situation. Make a point to become familiar with the different types of auto coverage available, and keep them in mind when choosing an auto insurance plan.

Liability Coverage:
Liability  coverage covers the expenses, or part of them, in cases that you are responsible for. However, it is not that simple, there are many different kinds of liability coverage.

Bodily Injury Liability - This type of coverage insures bodily damage, harm, or death that you were responsible for. This includes medical bills, lost income, and pain and suffering. Legal costs are also covered under this type of coverage. Don’t sell yourself short here, medical and legal bills can be the most costly part of an accident.

Property Damage Liability - Not only does this form of coverage covers damage to a car, but it also covers all other forms of property. From damage to homes, to mailboxes, and everything in between. Once again, this also covers any related legal bills.

Physical Damage Coverage:
Physical Damage Coverage entails damages done to your vehicle. Not only does it cover damage caused in an accident, but also covers your car in cases of theft, vandalism, and other rare occurrences. Not all policies cover the same areas, so check with your particular company beforehand.

Comprehensive Coverage - Comprehensive coverage covers your vehicle, and sometimes other vehicles for damages caused by things other than collision. Each policy varies so check with your prospective insurance company before signing up. Common scenarios that this form of coverage covers are damages caused by theft, fire, water damage, animals, or vandalism. This form of coverage is typically recommended for high end or expensive vehicles, as well as financed or leased vehicles.

Collision Coverage - This is the most common type of auto insurance coverage, and is required by most state laws. This covers damages done to your vehicle in case of a collision. Choosing a large deductible, the amount you pay out of pocket, can greatly reduce your premium costs.

Uninsured and Under Insured Coverage:
This form of coverage protects you against scenarios in which the other party (if at fault) doesn’t have insurance or if they decided to hit and run. In other words, if they aren’t able to cover the damage your auto insurance company will cover the costs.

These are the 5 most common types of auto insurance coverage. However, there are many more forms of coverage available. Other types of coverage are geared towards medical, legal, and other expenses that many people don’t ever use. However for the best protection it is ideal that you get as many types of coverage as possible.

For many people, choosing an auto insurance policy is a painful process, and they try to get through it as fast as possible by going with a company they are familiar with through paid advertisements, and the price tag. These people later find that their auto insurance is causing more problems than its worth.

Purchasing auto insurance is a major financial decision almost all of us must make, and shouldn’t be taken lightly. You didn’t rush the process of buying your home, or your car; why take shortcuts when insuring your car?

Vehicles are liabilities, not assets, and start depreciating in value the second you start the engine at the dealership. From there on out our cars continue to cost us more and more money. The last thing anyone wants is to lose their car entirely, or have it cost them more than it already is. This is why choosing your auto insurance policy should be given great thought and should never be chosen in haste.

The first thing you should do when choosing an auto insurance plan is to look over the details and terms multiple times to ensure you know exactly what you are getting. Many people don’t pay much attention to these items until they are involved in an accident, and its too late to do anything. Often times people will jump on the lowest quote they get. What the fail to notice is that the coverage is very limited.

It is important to not just insure yourself, but everyone else that may be driving your car on a fairly regular basis. Many people try to save money by not including family members on their policy. By doing so they are greatly restricting their coverage. Many people lend their car to someone to run errands for the day, only to find out they’ve been involved in an accident, and their policy won’t cover the damages or injuries.

When you change auto insurers, be sure you cancel your old plan. Many people neglect this simple step and end up having to pay two times their monthly payment, or worse if on a semiannual payment plan.

As you can see, all these preventative steps are common sense, and require little effort. If you just take the extra time to protect your investment, the chances of something coming back to bite you are greatly reduced.

There is so much information available today involving auto insurance, it is easy to get confused. Many times all it takes is one misunderstanding to spark a rumor, that over time people begin to believe as fact. All the legal documents, contracts, and terms certainly doesn’t make the whole process of choosing an auto insurance policy any easier. The goal of this article is to dispel a few of the many myths and misconceptions we here today.

If you aren’t at fault, your premium won’t increase.
This is the one misconception I hear time and time again. People figure that since it wasn’t their fault, they shouldn’t have to pay for it. While this is logical, and would be true in a perfect world, the auto insurance industry disagrees with you. If you are involved in an accident, whether you are at fault or not, the insurance companies see this as a testament to your likeliness of being involved in an accident.

I have an auto insurance policy, so I’m completely covered.
Many people assume that holding any kind of auto insurance at all will protect them in all scenarios. In fact there are more than a dozen different types of auto coverage. Just because you’re covered in cases that you collided with another vehicle, does not entitle you to bodily injury coverage. This is just one example. It is vital to your financial security that you fully understand what coverage your particular policy includes.

Comprehensive coverage is commonly mistaken to mean you are insured in all scenarios. In fact all it means is that you are covered for things other than collisions. However, this does not mean you will be covered in every aspect.

If you aren’t driving at the time of an accident, you don’t have to pay up.
Just because you weren’t driving the car when you let your friend borrow it for the weekend, doesn’t mean they are responsible for filing a claim with their insurer. When you take out an auto insurance policy, it covers YOUR car, regardless of who is driving it.

The color of your car effects your rates.
This one is almost believable, simply because it fits so well with higher premiums for faster cars, ages, and genders. As believable as it may seem, basing a premium on the color of a car does not justify charging someone more.

It costs many people an arm and a leg to get themselves and loved ones insured while on the road. We are sometimes limited - by things we cannot change has to what we can do to influence our auto insurance premiums.

But we should not limit ourselves, rather, we should do everything we can to ensure we are getting the best deal and lowest premium available. Some things are so obvious, that you’ll be surprised you hadn’t thought of them before. The common trend among the following 10 tips is that they all lower the risk involved for the auto insurance company. By doing so, we are able to ask for lower premiums.

1.Choose large deductibles. The higher your deductible, the less the insurance company will need to pay out. Of course, when setting your deductible, it is important that you don’t choose a deductible you can’t afford. The best place t set your deductible is where you will always be able to afford it. Remember, you may not be as financially secure a year from now, as you are now. This is why its always a good idea to give yourself a little cushion, so that you know you’ll always be able to afford it.

2.Opt out of comprehensive coverage for older cars. For the sake of an easy explanation, lets say the car you are insuring is worth only $2000. There is no reason to get comprehensive coverage with a deductible of $1000, as its not worth replacing the car for half the worth of the car.

3.Pay semiannually rather than monthly. You can save a nice chunk of cash by paying for coverage 6 months in advance rather than monthly. It’s no different than buying any other item in bulk. By paying more upfront, your auto insurance company is willing to offer you a discount.

4.Shop around for the best deal. A smart consumer always gets the best price. This applies to shopping for auto insurance as well. By shopping around, looking for the best deal, you will almost always get it. Our quote tool allows you to search our database of insurance companies and their rates. This allows you to choose the best deal of the bunch, often times saving you thousands a year.

5.Ask for low mileage discounts. If an auto insurance company knows you won’t be on the road much, the chances of them having to pay out for damages and medical bills is greatly reduced. If you don’t think you will qualify for such discounts try carpooling, taking the train or bus, or even riding your bike into work.

By now you should probably know about the many benefits of having auto insurance. By doing so you are protecting your health and financial wellbeing. What we don’t often hear about are the many horrible situations people have to experience for various reasons; sometimes their fault, and sometimes the fault of the insurance companies. However, we are required by law to carry car insurance at all time while driving.

All we can do is ensure that we don’t get ourselves into the same situation, and that we learn from other people’s mistakes. So without further ado, I present to you auto insurance horror stories?

Kathy, 20, from Richmond, Virginia shared her story with us, of how she had been sideswiped on her way back from work one evening.

“I’m still not completely sure what happened, I remember getting hit, and next thing I know I’m up against a light post on the side of the road. It turns out, the guy that hit me didn’t have any auto insurance. I had wrenched my neck pretty bad, and was in a lot of pain, so I went over to the hospital to get it checked out.
I called my insurance company the next morning to report my claim, and was hoping to get reimbursed for my medical bill. Apparently, since the other guy didn’t have insurance, and my plan didn’t have underinsured motorist bodily injury coverage, I was out of luck, and ended up having to be for me $800 medical bill out of pocket.”

What We Can Learn From Kathy’s Story:
Always make sure you have appropriate forms of coverage, in this case, underinsured motorist bodily injury coverage (UNDUM).

Don’t cut out particular forms of coverage just to save a few bucks. If we knew when accidents were coming we wouldn’t need insurance at all, unfortunately this is far from reality.

The next horror story was sent to us from Simon of Boulder, CO.

“I had just switched my auto insurance to a new company, with better coverage, since I had just got a promotion, and wanted to make sure I had all forms of coverage. Everything went smoothly, I was already feeling safer with my finances. 6 months pass, and I get 2 bills in the mail; one from my new insurance company, and one for my old company. It seems so obvious now, but at the time I had no idea you actually had to cancel your previous policy. Long story short, I ended up paying an additional $500 to my old insurer in addition to the cost of my new policy.”

What We Can Learn From Simon’s Story

* You always have to cancel your old policy, once you’ve switched companies. Otherwise you may be paying for coverage you won’t even be using.

Getting auto insurance seems like such as easy task, after all it is required by state law that you be holding an auto insurance policy at all times to reduce the financial risks involved with getting in an accident. While it is true that getting car insurance is easy these days with all the various quote tools available online; not being well informed on the subject can often times cost you thousands of dollars a year.

The goal of this article is to point out essential tidbits of information, that you should know before purchasing an insurance policy. Some points are extremely obvious, while others you probably never would have thought of. I’ll start with the more obscure pieces of information first, so I don’t bore you.

1. Pay-Per-Mile - If you rarely drive you car to and from work or school, it may be a good idea to find pay as you go auto coverage. If you regularly take the bus, carpool, or ride your bike, chances are you don’t put a ton of mileage on your car. Many state now offer this type of insurance for these very situations. Car insurance companies will track your mileage by making regular in-person checks of your mileage, or they will give you an easy to install device that automatically relays your usage details back to them.

2. Credit Scores - Whether you think your credit is a good way to gauge your liability to your insurer or not, they certainly think that it should effect your premium. If you’re credit score is far from favorable, you may end up paying more for your auto insurance.

3. Your Friends May Cost You - Just because you weren’t behind the wheel or even in the car, doesn’t mean that you aren’t responsible for damages. If you lend a friend your car, and they and up getting in an accident, it is your responsibility to file a claim with your insurance company, not theirs.

4. High Speed Cars Mean High Premiums - The car you insure greatly effects what you will have to pay as your premium. The speed of your car isn’t the only thing taken into consideration either. Safety ratings, size, and the demographic that drives a particular car, can all effect what you pay, in both positive and negative ways.

5. Get Multiple Quotes - This is the best way to ensure you are getting the best price for the coverage you are receiving. Going directly to an insurance companies office will give them the idea that you don’t plan to shop around, and will often give you a higher than usual quote. An easy way to avoid this is by getting online quotes. This way you can get multiple quotes at the same time without shady sales tactics.

When the economy goes sour it effects everybody. Not only are we looking to save some extra money wherever we can, but the insurance companies are also trying to increase the profit margins. This puts those looking to renew their auto insurance in a tight position. You are typically left with but 3 options; renew your coverage at a higher right, cut down on your coverage, or go shopping for cheaper insurance.

During a recession, many people turn to committing auto insurance fraud, to get some money back in their pockets. The insurance companies do everything they can to prevent fraud from occurring, but they aren’t able to catch each and every person. As a result, more people are filing claims and the insurance companies have to shell out more and more money.

Just as with a brick and mortar retail store, when there are large amounts of theft, auto insurance companies are forced to raise their prices to make up for lost profit.

Your best option at this point is to go looking for equal coverage, at a more affordable price, or find ways to cut the cost of your auto insurance.

Finding Other Coverage

Get Multiple Quotes - There are so many car insurance quote services online, there is no reason you shouldn’t be able to find a better deal than what you currently have. Even in a down economy, smaller companies are always available to cut you a better deal.

Know What You Are Getting - Far too often people jump on an offer just because it has a lower price tag. Make sure you take an in-depth look at what kind of coverage you will be receiving. Before looking at any quotes, make a list of personal requirement you have for coverage, by doing so you will better be able to resist the urges of settling for a plan with minimal coverage.

Cutting Your Auto Insurance Premiums

Consider carpooling or taking public transportation to work. The distance you drive greatly effects how much you will be paying. Additionally, if you can cut your mileage significantly, pay-per-mile auto insurance may be able to save you hundred of dollars each month.

You can significantly cut down the cost of your auto insurance by purchasing a smaller, cheaper car. In addition to saving on your insurance, you will also be saving quite a bit on gas by driving a smaller car.

Remember not to sell yourself short. You wouldn’t get inadequate coverage in a prosperous economy. Why would you put your finances at even greater risk during a recession, when money is tight?

It is no secret that the car you drive plays a large role in determining what the auto insurance companies feel is fit to charge you for a premium. The speed, safety, cost, and people that drive the car all get factored in to the rating.

10.Jaguar XJ - It should come as no surprise that the Jaguar XJ made it onto the list of most expensive cars to insure. Not only is the vehicle particularly expensive ($35,000-100,000 depending on year), but this vehicle is also darn fast. While young and reckless- aren’t likely to be driving this car, the cost and speed makes this car very costly to insure.

9.Nissan 350Z - This car is fairly small and a favorite among young folks likely to speed and street race. The sleek lines of this sports car appeals to car tuners, and the insurance companies like to charge   drivers of this vehicle rather high.

8.Acura RSX - Like the 350Z, the Acura RSX is fairly cheap and is pretty popular with the younger crowd. It is also small making it likely to take a great deal of damage if involved in an accident.

7.Honda S200 - Again size and speed com into play here. This car is one of the smallest on the market.

6.Lexus IS 300 - Although this car is rather safe, it is also very fast. With a young driver behind the wheel, the insurance companies evaluate this car as high risk.

5.Jaguar XK - The Jaguar XK is an absolutely stunning car, one of the fastest and most expensive models put out by this Ford owned company. The price and cost of repair are also rather stunning. This is a deadly combination that the insurance companies would love to charge you for.

4.Subaru Impreza WRX - This is one of the favorite vehicles of car tuners everywhere due to its high horsepower and relatively low cost. This also means that many young people are likely to be speeding around in it. Subaru replacement parts are also on the more expensive side of the spectrum. The better safety features keeps the WRX lower on the list than the Mitsubishi Lancer Evolution, which it is commonly compared to.

3.Dodge SRT-4 - This is one of the most expensive and fastest street legal cars available. Its flashy design also makes it more likely to get vandalized.

2.Mercedes CL - The Mercedes CL is both expensive and fast, landing it the #2 position on our list. Are you starting to see a pattern here-

1.Mitsubishi Lancer Evolution - Fast and small. The drivers of this car find themselves in more accidents than any other car. The Lancer vo- is fairly inexpensive for what it is, but the incredibly high speeds this car can reach and the quick acceleration, makes this car the #1 most expensive car to insure.

When it comes to our list of cars least expensive to insure, safety is always king. Other contributing factors are how often these cars are driven and the demographic of people driving them.

10.Ford Taurus Station Wagon - This is a relatively slow family car. The Insurance Institute for Highway Safety awarded the Taurus station wagon the Top Safety Pick for the 2008 model, based on crash test ratings. Station wagons, likely used to haul around the kids, in turn adding distraction, prevents this car from making it higher on the list.

9.Pontiac Montana Extended Model - This car is relatively big, not very fast, and typically driven by adults with a family who have safety in mind.

8.Ford Thunderbird - This small car is an unusual pick for this list. However, this car is often regarded as a collectors item, which doesn’t get driven all the often.

7.Mazda MPV - The Mazda MPV, the second family van on the list, gets the number 7 spot on the list for its high safety rating according to various highway safety evaluators for both drivers and passengers. This car usually comes fully loaded with safety features as well. Again, this car is likely to be driven by safety-minded parents.

6.Pontiac Montana Standard Model - This is Pontiac’s second car on the list, yet almost the same model. This version of the Montana is slightly smaller, and likely to do less damage to other vehicles involved an accident, warranting it a higher position on the list.

5.2004 Nissan Pathfinder Armada - For such a large car, I’m honestly surprised the Armada made it so high on the list, considering how much damage it could inflict on other cars. However, the safety ratings are impressive, and occupants of the vehicle aren’t likely to be injured.

4.Buick LeSabre - This is a rather large sedan, with all sorts of impressive safety features. The common driver of this car is older and safer. I guess there is some truth to older people driving Buick’s. Now I can’t really blame ‘em.

3.GMC Safari - This is a rather big fan, almost industrial, and is fairly inexpensive. This also means its cheap to repair, in addition to the fact that it’s domestic. The chances of serious bodily injury are also unlikely according to The National Highway Traffic Safety Administration (NHTSA).

2.Chevrolet Malibu Maxx - This rather inexpensive station wagon has received 5 star ratings for driver and passenger safety ratings from the NHTSA. Impressive safety features such as overhead window crash curtains for the front and back seats has earned this car the #2 spot.

1.Volvo XC90 - You are always hearing about how safe Volvo’s are, and they definitely live up to the hype. The Insurance Institute For Highway Safety (IIHS) gave this SUV perfect markets in all categories of testing. This isn’t uncommon for many cars, but the XC90 has received perfect ratings, dating all the way back to 2003.