Category: Personal

How to Find a Trustworthy Car Mechanic

Posted on by shasha insurance

If you’ve been lucky enough to avoid car mechanic nightmares yourself, you’ve probably heard plenty of horror stories from your friends and co-workers-whether it’s the mechanic who charged your sister for a new carburetor when she just needed an oil change or the jerk who convinced your boss to purchase a brand new set of tires when a good patch job would have done the trick. As unlikely as it may seem, there are plenty of good car mechanics out there.  It just takes some research to find them.

Don’t wait until your next breakdown to hunt down a good auto shop. Find a top-notch mechanic now so you’ll know who to call the next time you need help. Here are a few tips to help you pinpoint a truly trustworthy car mechanic:

Ask for recommendations

Ask your family members, friends and co-workers if they can recommend a great mechanic. After all, if your brother or best friend was happy with an auto repair shop, odds are you’ll be satisfied with them too.

Of course, you may be better off asking for recommendations from people who have some auto expertise. While Aunt Betty might heartily recommend ABC Auto Shop, she may not realize they’ve been ripping her off all along because she simply doesn’t know much about cars.

Decide on a dealer vs. independent shop

You may be more comfortable working with a mechanic at your car dealership. That’s fine, but you should keep in mind that dealerships generally charge more for repair services. Remember that any well-trained mechanic can perform first-rate repairs, whether he works for a dealer or a small mom and pop shop.

Many independent repair shops can offer a warranty on parts and repairs and use factory parts recommended by your carmaker. This can save you loads of money in the end. On the other hand, if you require repairs associated with a recall or have an extremely unusual car problem that is common with your type of vehicle, you may be better off going to your car dealership.

Look up online ratings and reviews

Search for repair shop ratings and reviews on sites like Women-Drivers.com or mechanicratingz.com to find out how other customers rank local car mechanics. However, keep in mind that just because a shop receives two good reviews doesn’t mean they always do a great job. By the same token, if a mechanic earns two bad reviews, that doesn’t necessarily mean he’s terrible. While online reviews can be helpful, you should take them with a grain of salt. Visit the shop first-hand before you make your final decision.

Do a trial run

If you want to try out a new mechanic, take your car in for regular service like an oil change or tune-up. This will give you an idea of how quickly and effectively the shop works, the level of customer service they offer and how much they charge.

When you visit the shop, take notice of how the business runs. See if the shop seems neat and organized and if the staff seems friendly and knowledgeable. Ask if they have certified technicians on-staff and the most cutting-edge equipment. You should also ask whether or not they have credentials like Automotive Service Excellence (ASE) certification and AAA approval.

Find out if they concentrate in body or mechanical work and if they specialize in certain vehicle makes and models. Also ask if they offer a warranty and customer satisfaction policy. Also, take note if they have clearly posted labor rates. If so, compare these rates to other shops in the area.

If the staff seems annoyed by your questions or if they don’t offer clear answers, you may want to steer clear of this particular shop. After all, if they have nothing to hide, they’ll be more than willing to answer your questions-especially if they want to earn your business.

Steer Clear of Car Accidents

Posted on by shasha insurance

On average, there are more than six million auto accidents on U.S. roads every year. Sadly, 34,017 of these crashes proved to be fatal in 2008, according to the National Highway Traffic Safety Administration (NHTSA). Based on these shocking statistics, it may seem inevitable that we’ll all suffer from an auto accident at some point.

However, there are numerous precautions you can take when you’re behind the wheel to reduce your risk of having an accident. Auto insurance experts implore drivers to wear their seatbelts, drive defensively, closely follow driving laws and be considerate to other drivers. Read on for more driving safety tips that will help you steer clear of auto accidents.

Keep your eyes on the road

When you’re behind the wheel, it’s extremely important to stay focused on the road at all times. The NHTSA reports that driving distractions cause up to 4,300 accidents every day in the U.S. That’s why you shouldn’t take your eyes off the road for even a moment, whether you’re changing radio stations or dialing a number on your cell phone.

Safety experts say you should pull over to a safe place on the side of the road if you need to do any of the following:

  • Pick up an item you dropped
  • Change CDs
  • Look at a map
  • Eat or drink
  • Change radio stations
  • Dial a number, talk on the phone or send a text message
  • Read a newspaper
  • Apply makeup, comb your hair or take care of any other personal grooming

Just say no to road rage

Safety experts say drivers should also avoid aggressive driving. Be courteous to other cars on the road, and control your road rage. While it may be tempting to yell and gesture at another driver who cuts you off on the highway, try to keep your cool. If you antagonize an aggressive driver, the situations could quickly escalate. If you fear that another driver is putting you at risk, call the police immediately.

Try to remain polite on the road. There seems to be a common phenomenon where people who are generally well-mannered in every day life lose their sense of common courtesy when they’re behind the wheel. You probably see it every day during your commute. For example, when you turn on your signal to switch lanes, the driver in the next lane speeds up and blocks you in. While it may be easy to lose your temper in this situation, you’re better off letting them pass than trying to cut them off. After all, countless accidents occur every day because of aggressive driving.

Top ten safety tips

Follow these top ten safety tips to reduce your risk of having an auto accident:

  1. Never drive after you drink alcohol-even if you’ve just had one or two drinks.
  2. Don’t give in to distractions, such as playing with your iPod, reading a text message or picking up a toy your child dropped in the backseat.
  3. Avoid road rage. If you come across an aggressive driver, don’t antagonize or encourage them. Keep your cool and call the police if the driver is putting other motorists at risk.
  4. Keep a safe distance between your car and the vehicle in front of you. For every 10 miles per hour of your driving speed, leave at least one car length between your car and the car in front of you.
  5. Try to maintain a consistent speed. Don’t continually slow down and speed up unless the posted speed limit changes.
  6. Keep your car in tip-top shape. Get regular oil changes and tune ups and check the condition of your tires at least once a month.
  7. Stay alert when you drive through intersections. Most accidents occur in intersections, so be sure to look left, then right, then left again to make sure it is safe to pass through.
  8. Keep your side mirrors and rear-view mirrors adjusted properly. As you drive, check your side and rear-view mirrors every 15 seconds to make sure you’re in the clear.
  9. Be aware of road conditions and react appropriately. For example, turn on your lights if you’re driving at dusk or dawn or in the rain. If the roads are wet, snowy or icy and you feel your car starting to hydroplane, don’t brake suddenly or turn the steering wheel. This could send you into a skid. Instead, ease off the gas pedal slowly and steer straight until you feel your tires regain traction.

Sign up for a defensive driving class. With the proper training, you’ll be able to react more quickly to potential accidents on the road.

Do You Have Insurance When You Use Someone Else’s Car?

Posted on by shasha insurance

Bob is a sales manager for a chemical equipment company. He drives his employer-furnished car thousands of miles each quarter on business. He also drives it on weekend trips, errands around town, and vacations. Focused on his job, he doesn’t give much thought to who will pay if he has a car accident.

Janet and her husband own one car and can’t afford to buy a second right now. They get by as best they can with one, but sometimes this is a challenge. It seems like a gift from heaven when their retired neighbors offer to let Janet use their car over the winter while they live in Florida. Janet doesn’t think about insurance coverage; she’s thinking about how she no longer has to take a 90-minute commute involving three buses.

Bob’s employer has an auto insurance policy that will cover an accident he has while using his car on company business, but it might not cover accidents occurring when he drives it for personal use. If Bob strikes a pedestrian while driving to a sales appointment in midtown Manhattan, his employer’s insurance will probably cover any liability for the injuries. However, if he hits another car while he’s on vacation in Hilton Head, the employer’s policy might not apply.

Janet’s auto insurance policy will not cover an accident she has while she’s using her neighbor’s car. The policy states that it does not apply to injuries or damage resulting from the use of a vehicle that is A) furnished or available for her regular use; and B) not listed on the policy (an exception is would be a loaner car she has while her car is being repaired.) Her neighbors have made their car available to her to use anytime for a period of months. Consequently, if she’s involved in a multi-car pileup on the way home from work, and she is at least partly liable for the accident, her insurance will not cover her share of the liability. If the neighbors have insurance in force, it should cover the accident. If, however, they forgot to pay their premium and the policy has been canceled, there will be no insurance available.

Both Bob and Janet could use some additional low-cost coverage on their auto policies. This coverage, Extended Non-Owned Coverage–Vehicles Furnished or Available for Regular Use, extends the policy’s liability and medical payments coverages to cover situations like Bob and Janet’s. The coverage has two important features:

It applies only to the person listed on the policy endorsement unless indicated otherwise. If the endorsement shows only Bob’s name, then the policy will cover only him for the use of the company car. Otherwise, the policy will cover him, his spouse and any family member using the company car.

The coverage applies on an “excess” basis over other collectible insurance. This means that the insurance company will look to the vehicle owner’s insurance to pay first; if that insurance doesn’t apply or gets used up, then the individual’s policy will pay. For example, if Janet’s neighbors have a valid insurance policy, their policy will pay for the loss until the amount of insurance is used up; then Janet’s policy will pay. If the neighbors’ policy has lapsed, Janet’s policy will pay from the first dollar.

Individuals with situations similar to Bob and Janet’s should consult with a professional insurance agent about the cost of purchasing this coverage. For a relatively small cost, they can protect themselves while they enjoy the use of a vehicle someone else owns.

Homeowners – Are You Underinsured?

Posted on by shasha insurance

About two out of three U.S. homes are underinsured, according to a 2008 survey by Marshall & Swift/Boeckh LLC (MSB), a leading provider of building replacement cost data. Based on this new data, the average homeowner’s policy only insures the home to about 82% of the projected replacement cost of the home. Over the past decade, this point has been driven home as the U.S. has endured hurricanes, wildfires, and tornadoes.  Throughout the course of natural disasters, thousands of homeowners were left without enough coverage.

Although the study did not show results regionally, nationwide the average policy falls 18% short of the projected cost to rebuild the house. Put in other terms, the owner of a house insured for $200,000 would be short by $36,000 of the funds needed to rebuild, if the averages held true.

Why do thousands of Americans find themselves in this predicament?  The most common reason for all of this is quite innocuous: homeowners often forget to update their policies.  For instance, suppose a homeowner decides to put an addition onto their home, which would drive up the value of the property beyond the stated policy limits.  If the home improvement is never reported to the insurance company, no additional coverage is added to the policy. Additionally, rising construction costs and ever-changing building codes are raising the price tag to rebuild.

To avoid this problem, homeowners should re-assess policies as they renew each year. If a homeowner suspects a change in the value of their home, this suspicion should be communicated to his or her insurance agent.  Although not every homeowner wants to insure to the full replacement cost of the home, this possibility should at least be examined and considered.

Is Your Home Properly Insured?

Here are some tips to help you evaluate your homeowners’ insurance:

  • Understand what your policy does and does not cover.  Remember that  just because your bank requires your policy to cover the mortgage at a minimum, this does not mean your insurance should be based on this amount. You need to insure your home, not the mortgage on your home.
  • If available, consider adding an inflation guard to your policy.  Although this will cost extra money, it will help offset the rising cost of rebuilding, should disaster strike.
  • If building codes change, which they inevitably do over time, you will most likely be required to rebuild according to the new laws. The older the home, the more expensive it will be to bring it up to code. In most cases, policies will not pay for these extra costs. An “Ordinance or Law Endorsement” can help pay these hidden costs.
  • Talk to builders in your area to get an approximation of replacement costs. The going rate per square foot for new construction should be considered in estimating replacement costs.  Current appraisals are also an excellent source to utilize.

What the New Flood Insurance Maps Mean to You

Posted on by shasha insurance

Is your property at risk of damage from flooding? If you answered “no,” think again. Every property has a flood risk; some may have a more severe risk than others, but all have some risk. A home on a lakeshore has a pretty obvious exposure to flooding. So, however, does a building miles from a body of water, located on a street with storm drains on it and a steady water supply. Because standard homeowner’s and commercial property insurance policies do not cover flood losses, the federal government makes insurance available through the National Flood Insurance Program. The NFIP evaluates the risk (and determines the insurance premium) for each property in a participating community according to its location on that community’s Flood Insurance Rate Map. Recently, those maps have been changing, and some property owners have received big surprises.

For a variety of reasons, the Federal Emergency Management Agency, which administers the NFIP, has spent the past several years working with participating communities to update flood maps. Some areas have experienced development that has changed water flow and altered drainage patterns. Soil erosion has impacted other areas, while changes in hurricane activity have affected coastal areas. The new digital maps give more accurate flood risk information on a property-by-property level.

For every property, the flood map changes will produce one of three outcomes:

* The risk level changes from low or moderate risk to high risk;

* There is no change in the risk level

* The risk level changes from high to low or moderate.

According to the NFIP, a low or moderate risk means that the risk of flooding is reduced but not completely eliminated. Such properties are still vulnerable from floods resulting from heavy rainfall, rapid snowmelt, clogged storm drains, and other causes. Properties with a high risk have at least a one percent annual chance of flooding. This means that a property with a 30-year mortgage has a one in four chance of flooding sometime during the life of the loan.

When the NFIP issues new maps, it normally provides a six- to twelve-month period before the new maps take effect. This gives affected property owners time to understand the changes and prepare for their effects.

If your risk level has changed to high, the federal government will require your mortgage holder to verify that you have bought flood insurance. The cost of insurance will increase to reflect the higher degree of risk. The NFIP has “grandfathering” rules to help property owners who built in compliance with the maps in effect at the time of construction or who have maintained continuous flood coverage on the property. This can offset some of the additional cost. The owner of a building that is sufficiently high above the minimum height at which a flood is likely to occur may actually see a premium reduction.

If your risk level has changed to low or moderate, federal rules will no longer require you to buy flood insurance. However, you will still have some risk of flooding, so it may be wise for you to retain the coverage. According to the NFIP, 25 percent of flood insurance claims come from properties with low or moderate risks. You may be able to convert your standard flood policy to a Preferred Risk Policy, which carries a lower cost.

Even if your risk level has not changed, you should discuss your situation with a professional insurance agent, who can suggest ways for you to protect yourself financially from flood losses. The NFIP says that flood is the most common natural catastrophe in the U.S. The time to prepare is before that flood occurs.

How Much Homeowners Insurance Do You Need?

Posted on by shasha insurance

Because your home is probably the biggest investment you’ll ever make, you’ll want to take measures to safeguard that valuable investment. The best way to protect your home investment is through homeowner’s insurance.

However, you shouldn’t settle for just any policy. The type and amount of insurance you need depends on your specific home, what’s in it and your personal requirements. But how much insurance is enough? Here are a few ways to you determine just how much insurance coverage you need:

Market value may not be enough

While you may be tempted to purchase just enough homeowner’s insurance to cover the market or resale value of your home, this may not be enough. While the market value may be enough coverage for some homeowners, that’s typically not the case.

Your home’s market value is not the same as what’s known as its “replacement cost.” The replacement cost of your home is the amount of money you would need to rebuild your home to its previous condition if a loss were to occur. This amount is different from your home’s market value, purchase price or the outstanding amount of your mortgage loan.

Especially right now, when property values are falling throughout much of the nation, the market value of your home is probably much lower than its replacement value. Therefore, you should not use the market value to determine how much insurance coverage you need.

Calculate the replacement cost

So, how do you figure out the replacement cost of your home? Your homeowner’s insurance company can calculate how much it would cost to rebuild your home based on the following:

  • Square footage of your home
  • Type and quality of your home’s construction
  • Any updates, special features or add-ons to your home
  • Quality and cost of materials used in your home

Read the fine print

Before you purchase a policy, read all the fine print so you know exactly what the policy covers. Homeowner’s insurance generally covers damages to your home and “other structures” on your property, such as a shed, detached garage, gazebo or pool.

In most policies, the amount of insurance coverage you receive for other structures is 10 percent of the amount of coverage you receive on your home. For example, if your insurance policy covers $100,000 on your home, the coverage you would receive for your other structures would be $10,000 combined. If you believe that the structures on your property are worth more than 10 percent of your home coverage, you may want to request additional coverage.

Take a look at your personal liability coverage

Most homeowner’s policies also include personal liability and medical expense coverage. Generally, your homeowner’s insurance company will pay up to $100,000 on a legitimate civil claim against you for an injury that occurred on your property.

However, this still may not be enough to cover a major lawsuit. You might consider purchasing a separate personal umbrella liability policy, which can offer additional protection. This type of policy offers a higher level of liability coverage and ensures that you and your family’s assets will be protected if someone sues you for damages. Umbrella policies typically pay up to a predetermined limit, which is usually $1 million, for liability claims made against you and your family.

Protect your valuables

If you have particularly valuable jewelry, artwork or collectibles in your home, you may want to opt for even more homeowner’s insurance coverage for additional protection. You may assume your valuables are fully covered by your homeowner’s insurance, but that’s not always the case. It all comes down to what’s called the “sublimit”-this is the limit on the amount the insurance company will pay for specific types of personal property. Although your policy’s total personal property limit may be $75,000, the sublimit for jewelry may be as low as $1,500.

Read through your contract and find your policy’s sublimit for artwork, jewelry and collectibles. If your valuables are worth more than the sublimit, you may want to purchase additional insurance to cover them. You can purchase what’s called a “floater” and have this worked into your homeowner’s policy. Insurance floaters typically cover one specific item, so if you have multiple valuables, you may need to purchase floaters for each item you want to insure.

Talk to a professional

Discuss your unique homeowner’s insurance needs with your insurance agent. He or she can help you determine what kind of policy will best fit your needs and whether or not you may require additional coverage.

Make the Right Decision When Choosing an Auto Repair Shop

Posted on by shasha insurance

Over time, car engines and parts have become increasingly complex, and most people just aren’t all that familiar with the inner workings of their vehicles. So it is often difficult to determine whether an auto repair facility makes honest assessments and charges fair prices.  Fortunately, there are a number of guidelines that provide assistance in determining that an auto repair shop is both competent and honest.

First of all, don’t choose a shop based on its location.  Although this may be the convenient choice, it may not be the best choice. The National Automotive Parts Association (NAPA) suggests that you find a reputable repair shop before you need repairs. When you are not worried about your current transportation needs, and not rushed to get a repair completed, you will make a more informed and logical decision regarding car repairs.

Ask Questions.  Contact local repair shops and ask about their experience with your particular vehicle make and model.  Do they specialize in certain types of repairs?  Don’t be afraid to ask the shop for a few references.  An upstanding facility that wants your business should be happy to provide them.  A reference call only takes a few minutes and could save you a lot of grief later.  Also, ask neighbors, family, friends, and co-workers to recommend repair shops they have used that do good work at fair prices.   

Investigate.  Contact your local Department of Consumer Affairs or Better Business Bureau to see if complaints have been registered against the repair shop you’re considering.  You can also ask if an independently owned and operated shop is associated with NAPA.  A shop must have a reputation for service quality in its community to be certified as a NAPA Auto Care Center.

Plan an On-site Visit.  Upon arriving at the shop, notice whether the vehicles being repaired are equal in value to yours.  Is the staff helpful and considerate? Is the facility well organized and tidy?  Does it have modern equipment? 

Within the shop, all policies (guarantees, labor rates, methods of payment, etc.) should be posted and/or explained to your satisfaction.  Inquire if the facility provides a written guarantee on parts and labor, and ask about customer satisfaction policies.

NAPA Guidelines.  Some shops advertise “free inspections,” but this is often not to your benefit.  Inspections take time, and the facility must somehow recover the cost of the time it spends on the inspection. This process usually results in an attempt to sell you repairs–whether they are necessary or not.  According to NAPA, “All reputable auto care centers must charge a nominal fee for basic inspections.”

NAPA recommends against basing your choice of repair shop on price alone.  In addition to parts and labor, you are also paying for the expertise of the mechanics.  The shop should have modern equipment as well as the skilled technicians required to make the needed repairs.  Does the shop have the ASE symbol prominently displayed?  ASE-certified technicians are trained and tested to achieve certification in a variety of repair specialties.  Furthermore, they must be re-tested every five years to maintain the nationally recognized ASE-certification.  The display of trade school diplomas and certificates of advanced course work from car manufacturers can also help identify qualified technicians.  Since it is the technicians themselves who are personally certified, not the shop, you may want to ask for assurance that a certified mechanic will handle the repairs on your vehicle.

Communicate. Once you have chosen a shop, discuss beforehand what parts will be used to repair your vehicle.  Brand name parts are typically built to the original manufacturer’s quality or better, and they usually come with warranties. ON the other hand, remanufactured parts and non-brand name parts often cost less and may also carry warranties.  Ask the staff to discuss the pros and cons of which parts to use.

Disagreements can occur due to lack of communication between the customer and the shop.  It is easy to become intimidated when communicating with a repair shop, and you hear a lot of words and concepts you don’t necessarily understand.  A sign of a reputable facility is the ability to communicate your vehicle’s problems to you, along with your options for fixing the problems.  Do not be afraid to ask questions about the repairs as well as the costs.  It is equally important to give the shop a full description of the problem.  If the car is “making a strange sound,” try to explain exactly when it happens.  Does it happen when braking or accelerating? when the engine is hot or cold? on a full or empty fuel tank?  The point is to do your part to assist the mechanic in accurately diagnosing and repairing the problem.

In these economic times, the average cost of a new vehicle exceeds $28,000, and consumers may need to drive their cars longer.  Basic vehicle maintenance and good repair service are the best ways to keep your car running smoothly for many years to come.

Parents, Tell Your Kids: Stop Texting and Drive

Posted on by shasha insurance

In the summer of 2009, a shocking video posted on the Internet gained widespread attention from the media. Viewers found it so upsetting that YouTube restricted access to it on its Web site. Created by the police department of a small town in Wales, it depicted a fictional but horrific car accident that claimed the lives of four people and seriously injured the driver who caused it. The culprit: A teenage girl who was sending a text message from her cell phone while driving.

“Texting” while driving is a very dangerous practice. Car accidents are already the leading cause of death for people aged 16 to 20, according to the Centers for Disease Control; by distracting them, texting increases their chances of getting in accidents. Eastern Virginia Medical School ran a study in which 21 teenagers with at least six months’ driving experience and no chemical influences simulated driving in 10 minute segments. When they sent text messages or searched their MP3 players while driving, they changed lanes and speeds more often than when they did not. Some of them ran over pedestrians.

The federal Department of Transportation convened a Distracted Driving Summit meeting in the fall of 2009. Participants discussed solutions to a variety of distractions, including ways to get teens to stop texting behind the wheel.

  1. Just as they would talk to their teens about the dangers of drinking and driving, parents should talk with them about driving while texting. Teens don’t necessarily think about how risky some behaviors may be. Driver education instructors might not raise this issue, so it’s up to parents to address it.
  2. When they have the conversation with their teens, parents should not worry about being too harsh. Cemeteries are full of teenagers who thought they were immortal, so this is no time to soft-pedal the message. Have them watch the Welsh police department’s video, give them testimonials from other teens to read, and show them stories about accidents like the one in 2007 that killed five girls who had just graduated from high school near Rochester, New York.
  3. Some state and local governments have enacted laws against texting and driving. New York, California, Arkansas, Texas and Missouri are a few of the states that have enacted bans. Parents should find out the laws where they live and make sure their teens know.
  4. Parents should set firm rules with tough consequences for violations. Loss of driving and cell phone privileges are some of the penalties parents may want to consider for breaking the rules.
  5. Parents should model the behavior they want from their teens. They should avoid talking on cell phones or texting while driving themselves. These practices are not any safer when someone over age 40 does them; parents should set a good example and drive safely.

Learning to drive is an important milestone in a teenager’s passage to adulthood. It is important for safe driving habits to become ingrained in new drivers. Parents are their children’s first teachers in many subjects; texting and driving should be no different. Teens’ lives and the lives of the people sharing the highways with them depend on it.

Tips to Find Affordable Car Insurance for Your Teen Driver

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If your teen is getting ready to put his hands to the wheel, it’s time to think seriously about car insurance options.  A dreadful thought for many parents…but with a little research and careful planning you may be able to obtain affordable car insurance for your teen.  Let’s explore some ways to lessen the cost of your teen’s auto insurance.

Proper Driver Training

Many teens opt for driver’s education in high school, and this is a wonderful way to decrease your teen’s car insurance rates right from the beginning.  Many car insurance companies offer discounts to those who have completed a driver’s education course successfully.  Not to mention driver’s education provides proper on-the-road training for your teen.  The instructor can teach all the written and “unspoken” rules of the road while also showing proper driving techniques including defensive driving.  Knowing how to drive properly helps decrease the chances of careless driving thus making your teen a much safer driver.

Law versus Fun

Emphasize to your teen that although driving is fun, it’s also a serious responsibility.  Make sure he understands how the law works and the stiff penalties for speeding, racing, careless driving, drunk driving, running stop signs or red lights, not wearing seatbelts, parking in undesignated areas, etc.  Explain that even one traffic offense can eliminate his chances for affordable car insurance in years to come, and may even cause him to lose his driving privileges for a while.

Does Your Teen Make the Grade?

Some insurers offer discounts to students who keep their grades up.  This is somewhat of a reward for you as a parent and your child if your teen gets good grades or has a high GPA (grade point average).  Your car insurance company may offer this discount because insurers feel that a teen who demonstrates responsibility and carefulness in school is more likely to do the same while behind the wheel of an automobile.  This can be used as an incentive for your teen as well.  You might even offer a bonus allowance to your teen for keeping his grades up, using the money you’ll save with cheaper car insurance!

Choose Cars Wisely

Teens and sports cars – these two words shouldn’t be used in the same sentence if you’re shopping for auto insurance.  Insurance companies frown upon teens buying or driving sports cars, even if the teen is a safe driver.  Sports cars in general tend to carry higher insurance rates for drivers of all ages, but teens are especially vulnerable to temptation when it comes to showing off their new car and testing how fast it will go.  Opt for a sedan or family-style car with all the safety features possible.  The good thing about safety features is your insurance company may offer discounts for certain safety features such as anti-lock brakes, air bags, added frame support, and others.

Opt for an Add-On to Your Policy

When your teen first starts driving, consider adding him to your current insurance policy for a while.  You can do this as long as you remain the primary driver of your vehicle. Then your teen will be able to enjoy the lower rates based on your discounts and age.  If he has only a beginner’s permit, check with your insurance company to find out if he should be added to the policy as a driver.  Most will cover teen drivers automatically under your policy while driving with a permit.

Shop for the Best Deal

If you’re shopping for a car insurance policy for your teen, you’ll be surprised at the differences among companies.  Every company varies in what it considers to be “high risk” drivers.  Some insurers specialize in insurance for young drivers and are able to offer cheaper rates than others.  Also, compare each company’s discounts for teen drivers.  Some may offer more discount opportunities than others.

Having a teen driver creates awareness about road safety and car insurance like nothing else.  Use these tips to guide you as you shop for car insurance that will provide the most coverage for your money.

Car Insurance 101 – The Importance of the Annual Insurance Checkup

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Few people look forward to shopping for insurance, and once that coverage is in place there is a strong temptation to simply leave it as is. But that set it and forget it approach can be a big mistake. Insurance needs change over time, and it is important for everyone to take a look at their own insurance needs to make sure those life, health, home and car insurance policies are still providing adequate coverage and protection.

Reviewing your insurance coverage, including your car insurance policies, on a regular basis is a great way to save money and gain peace of mind. If the results of your assessment show that you do not need to make any changes you will have the satisfaction that comes with knowing that you are well protected. If on the other hand you find gaps in your coverage you will be able to address those shortcomings and avoid problems down the road.

Check the Cost of Coverage

When you first purchased automobile insurance you no doubt shopped around – comparing premium rates and coverage levels for every insurer you could find. But since then you may have assumed that the company you are insured with will always have the lowest price in town. That may or may not be true – but the only way to know for sure is to check the rates offered by competitors.

Is it Time to Drop Collision Coverage?

The annual insurance review also gives you a chance to determine whether or not it still makes sense to carry comprehensive and collision coverage on your vehicle. If the value of the car you drive has dipped below $3,500 it may not be prudent to carry full coverage. You may be better off dropping that coverage and stashing the premium savings into an emergency fund. Your current policy should break out the cost of collision coverage, so it will be easy to see how much you could save. If you have the fiscal discipline it takes to funnel the money you save into a special account you can self-insure and cover the cost of repairing or replacing your car in the event of a total loss.

Reviewing your insurance coverage may not be fun, but it is certainly important. Taking the time to do an annual review of all your insurance coverage can yield significant cost savings and give you the peace of mind that comes with knowing you are well protected.