Buy through finance or cash?
If you decide to finance your vehicles you will be required to obtain comprehensive and collision coverage to insure your financier gets his money back in case of an accident. It is the most expensive type of coverage available and will make your premiums even higher. With cash you can buy a cheaper vehicle and select a cheaper type of coverage such as third party or third party fire and theft. If you have no other choice but to finance your car then look into raising your deductible when applying for policy. This can lower your premiums but remember this is what you are going to pay in case of the claim being filed.

Clean Driving Record
If you were licensed for at least 3 three years you may qualify for a 20% good driver discount provided during these three years you had not had accidents resulting in a death or injury and were not charged with driving under the influence of alcohol or drugs in the past seven years. Also you should have no more than one “violation point” on your license.

Being a Good Student
You might find yourself eligible for a discount by having good grades in school. Many insurers will favour young drivers with grades ‘B’ or higher and reward them with up to 10% lower premiums. Reason for that is being a responsible student reflects well on your driving habits. But you will need to provide a proof of grades to the insurance company.

Low Mileage

Car insurance rates for young drivers are also determined by how often you operate your vehicle. You may be entitled to annual mileage discount if you do not use your vehicle much. Low mileage means you are not on the road for a long time and hence less prone to accidents.

Driving Course

Insurance companies love safe drivers and will lower the premiums up to 10% of Collision, Bodily Injury, Property Damage, Personal Injury Protection and Medical Payments coverage if you provide a proof  of completion of an approved defensive driving course.

Improve Your Credit Score
Most car insurance companies now consider your credit score when determining your premium.  Insurers have decided that there is a correlation between your credit history and potential insurance claim behavior.  While age, vehicle, driving history, and location all still have an effect on your premium, credit history can also have an impact.  Depending on your personal credit score, this can be a good thing, or it can be a bad thing.
Regardless, now more than ever it is important to make sure that you have a healthy credit score so that you can obtain the lowest possible car insurance rates.  Paying all of your bills on time is obviously the simplest way to maintain a good credit score; however there are a number of items that insurers look at when calculating this score, including:

* Bankruptcy, foreclosures or collections
* Payment history of loans and bills
* Amount of time you've had credit
* How often you've recently applied for credit
* How many open lines of credit you have
* Type of debt you have
* Debt to credit ratio (how much you owe vs. available credit)

Taking all of these factors into account, we can quickly identify several ways that you can increase your credit score, and immediately obtain lower car insurance rates.

(1) Obtain a free credit report and fix any errors.
By law, you are entitled to a free credit report every year.  Simply contact one of the three major credit bureaus to obtain a copy.
Trans Union (www.transunion.com) at 1-800-888-4213
Equifax (www.credit.equifax.com) at 1-800-685-1111
Experian (www.experian.com) at 1-888-397-3742

Once you obtain a copy of your credit report, review it very carefully to make sure there are no invalid debts, late payments, or delinquencies listed.  If you find any errors, immediately report it to the credit bureau.  By law, if you report such an error, the credit bureau must investigate it and send you a response within 30 days.
Often, repairing an error on your credit report can significantly reduce your car insurance premiums.

(2) If you've applied for credit, wait to obtain car insurance.
Since recently applying for loans can adversely affect your credit score, you will drastically improve your chances of getting better insurance rates if you wait about four to six months after you've last applied for a loan or credit before purchasing car insurance.

(3) Reduce lines of credit by consolidating loans.
When it comes to credit score, having three credit cards with a balance of $5000 each isn't considered as favorable as having one card with a $15,000 balance.  Debt to credit ratio (your balance vs. your credit limit) is certainly a factor, but since the number of lines of credit is an additional factor, at least reducing your lines of credit to only one or two will improve your credit score.

(4) Change bad debt into good debt.
Credit score is significantly impacted by the amount of credit card debt that you have.  If you are running very large balances on your credit cards, consider transferring those balances to loans that are considered "good debt" such as home equity loans, or 401k retirement loans.

(5) Pay down your debt before applying for car insurance.
This sounds simple, but it's also the hardest to do.  Every year when tax time comes around and families receive a tax refund, we promise ourselves that we are going to at least devote a portion of that money to paying down debt.  All too often we end up spending the money on something else.  However, having the discipline to pay down your credit card debt will improve your debt to credit ratio.  This alone has one of the largest impacts on credit score than any other factor.

Taking action on one or all of these issues to improve your credit score will have a tremendous effect on the amount you eventually end up paying for your car insurance.  So take your credit score seriously and do everything you can do improve it immediately.

Take a Driving Class
One of the fastest and most effective techniques to drop car insurance rates for young drivers is also the one most people don't bother with - taking a Defensive Driving class.Most insurance companies offer reduced rates if you have taken a driver's education or defensive driving class.  For example, car insurance companies in 36 states offer premium discounts to graduates of the AARP Driver Safety Program (http://www.aarp.org/families/driver_safety/driver_ed/).The AARP program is a refresher program meant to help remind drivers of the rules of the road, and how to drive defensively and safely.  The best news is that AARP now offers the course online, so it is extremely convenient and there is no final test to pass.  The online course provides you 60 days to complete the course and provides a simple online registration procedure.  The course is only an 8 hour course, and many people complete it in one sitting.

Register here: http://www.aarp.org/families/driver_safety/driver_safety_online_course.html
Insurance info: http://www.aarp.org/families/driver_safety/driver_program/a2004-06-07-insurancediscounts.html

In many states it is mandatory for car insurance companies to provide discounts for drivers who take this course.  In other states, insurance companies do so voluntarily.  First check with the state bureau of insurance website (listed earlier in this guide) to determine if you live in one of these states.  If not, then check with your current, or potential, insurance company to learn if they offer this discount.  In either case, make sure you sign up and complete the course.  For the small fee and brief time it takes to complete the class - the cost benefits you receive from the car insurance savings will be well worth it.

Take College Classes, and Get Good Grades
Most insurance companies offer a "good student" discount.  This discount is typically offered to drivers less than 25 years of age enrolled in school full-time.  Keep in mind that this doesn't only apply to young college students.  Many young folks getting started in life assume that once they graduate from college, they no longer qualify for the "good student" discount.  This isn't the case at all - the discount applies to any person under 25.  This means that if the student decides to continue schooling, full time, for a graduate degree, they still qualify for the discount if they maintain the grades until they are over 25.

Fortunately, most insurance companies also offer a discount for individuals who reach the 25 year old milestone.

Drive Defensively
One thing that has the most impact on car insurance rates for young drivers is obviously your driving record.  This should be encouragement enough to watch your driving carefully.  Observe the speed limit, and drive as defensively as possible.  Ignore all situations that involve road rage with other drivers, and do everything humanly possible to avoid being in a situation that is high risk, such as drinking and driving, tailgating other cars, and speeding.

Life Changes That Can Affect Your Premium
Each time your life changes, while you may not realize it , those changes could very well have an impact on your policy.  Additionally, throughout these changes, your insurance also needs to change. To get the best car insurance for young drivers re-assessing those needs and changes is something that you should do at least every few years in order to make sure that you aren’t missing out on additional insurance savings.
There are a number of factors that impact your premium – and many of these a number of people are unaware of.  These factors can significantly reduce your premium if you remember to update your insurance company about them.

-Age: Drivers over 25 are considered lower risks for accidents.  Drivers aged 50 to 65 have the safest records.  Most insurance companies adjust premiums accordingly based on age.

- Marital Status: A married person pays lower premiums than a single person.  If you get married, make sure to let your insurance company know about it.

- Geography: Living in a rural area with fewer cars will result in a lower premium.  If you move to such an area, report it to your insurer.

- Driving Violations: Accidents or moving violations can bring higher premiums.  However most insurance companies only penalize customers for these for a limited period – usually five years.  If it has been three to five years since your last accident or violation, ask your insurance company if it’s about time for an adjustment to your premium accordingly.

- Credit Rating: Almost all insurance companies today now calculate a consumer’s credit rating quite heavily when determining the premium.  Make sure to obtain a year credit report for free, and when you see your overall score improve, make sure to check with your insurance company to ensure that your premium is recalculated accordingly.

- Occupation:  Insurers calculate premiums differently depending on occupation.  For example, a pizza delivery driver is calculated as a higher risk than an executive sitting at a desk all day.  If you ever change jobs to one that requires less driving – make sure to let your insurer know.

- Education:  The higher your education, the lower your premium.  If you’ve recently obtained a bachelor’s or master’s degree, make sure to alert your insurance company and you’ll enjoy a lower premium as a result.

All of these life changes can have a positive or negative impact on your insurance premium – so it’s important to find out.  Inform your insurance company of any of these changes, especially if you know that the impact on your premium will be a positive one.

Before you begin calling around, it’s important that you determine the level of car insurance  coverage you need.  Car insurance needs for young drivers are not the same for every young driver.  Some families own two or three very expensive vehicles, while other families own only older used cars.  Some people are members of AAA, while others are not.  The specific terms of a policy should be determined by your life situation and the value of the items being insured.

Many young people rush through the process of purchasing car insurance and simply accept the lowest quoted premium, and they typically don’t take the time to go through the policy and instead select only those components that they absolutely need.  It’s a common misconception that there are only two basic types of insurance – liability or comprehensive, however this couldn’t be further from the truth.  Car insurance is typically made up of about eight components.  While some of these components are required by state law, many of them are not.  Make sure to check with the department of insurance office for your state (see the links above) to determine which of coverage is optional.  The various types of coverage are outlined here.

Liability
Liability insurance is what covers any legal liability if you are involved in a car accident.  This coverage pays for any injuries or damage caused by the accident.  This coverage is the only component of car insurance that you are legally obligated to purchase for your car, and it only covers the cost of damage or injury that you are held legally responsible for in the case of an accident.  This can also include passengers in your own car who are injured in the accident. Parents buying car insurance for young drivers should remember that this coverage does not cover any damage caused to your own vehicle.

Personal Injury Protection (PIP)
Personal injury coverage is only allowed in certain states, and is more commonly known as “no-fault insurance.”  It covers medical and other expenses for people listed in your policy, regardless of who is at fault for the accident.  This coverage will even pay for lost wages should you become disabled because of the accident.

Medical Payments (MedPay)
MedPay coverage pays for the cost of all “reasonable and necessary” medical costs that you incur because of an accident.  Medpay requires prepayment of medical services and the receipt submitted to the insurance company, and then they will provide a reimbursement check.

Most states require either PIP or MedPay, depending on whether the state is a “no-fault” state or not.  Also, depending on the insurance company, you may have an option to purchase either PIP or MedPay for medical coverage.  Never purchase both PIP and MedPay, as they offer the same coverage.  However when deciding between the two, keep in mind that PIP offers greater coverage than MedPay, but it also has a 20% deductible while MedPay has no deductible.

The way to save money on your policy in this case is to make sure that you only purchase one of the medical coverage plans and not both, ideally selecting the less expensive option. In states that allow either coverage on car insurance policies -if you already have health insurance- then decline both MedPay and PIP coverage.  This will cut down on your premium tremendously.

Uninsured/Underinsured Motorist (UM/UIM)
This coverage insures that if you are in an accident with a motorist who has no insurance, or is underinsured, your insurance company will pay for many of the incurred expenses that the other person’s insurance company would have paid for if they had insurance.  If the other driver is underinsured, their insurance company will pay up to the limit set by their policy, and then your UIM coverage will kick in to cover the remainder of the costs.

Typically this coverage will pay for medical bills, lost wages, and even pain and suffering.  It also covers, to a limited degree, lost wages and even payment for psychological treatment.

Keep in mind that often this coverage does not pay for damage to your car.  This is very important to remember before purchasing this coverage component.  If you leave this component out and purchase comprehensive (listed below) only, damage to your car will still be covered even if the other motorist is uninsured.  UM/UIM simply offers the option to cover medical bills and lost wages.  However, if you already have health insurance and disability insurance from your employment, purchasing this component isn’t necessary.

Comprehensive
Comprehensive insurance covers damage or loss that are not a result of a collision, such as  natural disaster, fire, theft, or vandalism.  Deductibles usually apply, but the amount is optional.  The best option is to choose the highest deductible possible to save yourself more off the cost of the premium.
Custom Parts or Equipment (CPE)

This coverage will pay for the cost to repair or replace custom parts or equipment on your car up to a certain limit set by the insurance company.  Additional custom parts or equipment coverage (ACPE) are also available for additional cost which will cover costs for custom parts that are worth more than the lower limit.

This is more of a luxury than an insurance need.  Custom parts can sometimes be quite expensive, however this option should only be selected if the custom parts would cost significantly more than the insurance deductible, which will need to be paid out-of-pocket anyway.

Loan/Lease Payoff
In the case where you are in an accident and your car is completely totaled, this coverage will insure that your insurance company will pay off the remaining balance for the loan, or up to 25% of the cash value of the car, whichever is less.

Roadside Assistance
This coverage provides assistance in the case of a breakdown due to battery failure, flat tire, or any other event that causes it.

Understanding each coverage will allow you to talk with an insurance agent when asking for a quote and to ask for the precise options that you want, and to request the removal of the ones that you don’t need.  For example, if you are a member of AAA already, you have no need for the Roadside Assistance option.  If you have excellent healthcare insurance already and live in a state where MedPay or PIP isn’t required, you can save significantly by removing that coverage as well.  Once you have streamlined your desired policy to only the options that you know you require and nothing extra, you will be able to contact the highly rated insurance companies on your list, receive quotes, and obtain the absolute lowest car insurance rates possible.

Install Anti-Theft Devices

Now, below you will find a list of most frequently stolen cars in 2005. For an updated list of Top 10 Stolen Vehicles please go here:

In 2005, the National Insurance Crime Bureau released a list of the most frequently stolen cars in 2005.    The list varies depending on state, however the National list includes the following:

Top 10 Stolen Vehicles Nationally in 2005

1. 1991 Honda Accord

2. 1995 Honda Civic

3. 1989 Toyota Camry

4. 1994 Dodge Caravan

5. 1994 Nissan Sentra

6. 1997 Ford F-150

7. 1990 Acura Integra

8. 1986 Toyota Pickup

9. 1993 Saturn SL

10. 2004 Dodge Ram

Northern states typically have the same top ten as the national list.  However, in the southern states, such as in Alabama, this list is somewhat different – Ford and Chevy makes the top of the list.

Top 10 Stolen Vehicles in Alabama in 2005

1. 1993 Chevrolet 1500

2. 1989 Chevrolet Caprice

3. 1992 Honda Accord

4. 1997 Ford F-150

5. 1987 Oldsmobile Cutlass

6. 1996 Ford Taurus

7. 2004 Toyota Corolla

8. 1994 Ford Explorer

9. 1996 Dodge Caravan

10. 1996 Nissan Maxima

While the list is educating, even more enlightening is the fact that the NICB reported that there were a total of 1,235,226 vehicles reported stolen in 2005.  That is a significant enough number of stolen vehicles that all major insurance companies offer discounts for the use of Anti-Theft devices.

It is important to keep in mind that there are different types of anti-theft devices, and the kind that is installed will impact the discount.  There are mechanical devices such as steering wheel locking bars; vehicle alarms with loud sirens to attract attention; and electronic immobilizers such as systems that cut off power or cut fuel to the engine.

Any anti-theft device can be either active or passive.  Active devices are the ones that you need to manually set to enable it.  Passive devices are automatically enabled when the vehicle is turned off with the key removed.

Most discounts offered for anti-theft devices are on passive devices only.  Some insurance companies may offer discounts for some active anti-theft systems, however, in most cases the passive systems are the ones that bring the steepest discounts.  Installing your car with such a unit will dramatically reduce your insurance premium.

Another discount to keep in mind is the fact that many insurance companies offer additional rebates toward the deductible on claims if a vehicle equipped with such a device is stolen or damaged by thieves anyway.

Reduce your Mileage

Another way to reduce the rating of your car toward the premium cost is to drive it less.  While this may sound impossible – in most communities it isn’t.  Many communities around the country offer “Park and Ride” parking lots where you can park and then board a bus that will take you to work.  If you work at one of the larger companies in the area, or at a business that is located near one of the bus stops, you can save significantly by taking advantage of this mode of transportation.

Not only will you save significantly on gas costs, it is also better for the environment, and you will cut down on your insurance costs. How? Many insurance companies currently offer “low-mileage discounts” for drivers who drive less than a particular mileage limit annually.  Usually it is under 15,000 or 12,000 miles each year.

For example, in 2007, GMAC and OnStar by GM technology offered GM insurance customers discounts on their premiums of up to 54% if they drive less than 15,000 miles annually.  This system works significantly well with the OnStar system because actual mileage can be tracked.  However, other insurance companies will use yearly registration records to verify mileage claimed on a premium.  So it’s important not to lie to the insurance company about actual mileage driven – but it’s also important to try to cut back on miles driven if you can if you have an insurance company that offers these sorts of discounts, as they are often significant.

In order to full understand rental car insurance, we need to know the different types that are available to us. Below we will list the commonly available coverage types.

CDW (Collision Damage Waiver), LDW (Loss Damage Waiver), PDW (Physical Damage Waiver) It is the most basic of rental car insurance coverage that you need. Basically, if you cause an accident an anything happens to the car, you don’t need to pay for the damage. There are however limitations. The limitations will be set by the policy and are normally things like mileage, distance from city or even if you were caught drunk driving.

LIS (Liability Insurance Supplement) This insurance is in addition to the one above. It will cover any third party that is involved with any accident that happens with the rental car.

PAI (Personal Accident Insurance or Coverage) This coverage is also in addition to whatever is above and covers the passengers and whatever damage or maiming requiring hospitalization.

PEC (Personal Effects Coverage) or Personal Property Insurance This is normally the least opted coverage. It covers whatever items of value that you lose in an accident or from a break-in to your rental car.

The insurance coverage items that we have described to you above are ordered from the most basic at the top to the extras at the bottom. The most basic insurance package that individuals should drive away with are at least a combination of CDWs and LISs. This is the very minimum coverage that we consider safe. Any less and you could be in for a very messy and prolonged case if you do get into an accident.

Another thing note is that if you have comprehensive car insurance for your own car, it might still apply to your rental car. Some comprehensive car insurance products are so “comprehensive” that they even have some coverage options for any rentals that you might have in the same country. This is again, very dependant on the insurer that you have. If you aren’t sure of what options you have, it would certainly be worth your while to give you current insurer a call and see what your policy offers with rental car insurance. That being said, you can’t be too careful. Never assume you are covered unless you check.

Sometimes you might not only be covered by your comprehensive plan but sometimes even your credit card too. This is especially true for higher end “gold” or “platinum” offerings. These cards normally have some sort of personal property protection package built in and as such will already work as an PEC insurance coverage. As with its availability, it will also be very wise to check with your credit card provider. Again it is very dangerous to assume you are already covered.

It is only after you check with both your current car insurance provider and your credit card should you even think of purchasing the rental car insurance from the rental company. Naturally, if you do it the other way around you could very well be wasting money with double coverage. The coverage that you buy at the rental agency could very well overlap the coverage that you already have with your current comprehensive insurance or your credit card.

It should also be noted that if you opt to get insurance from the rental car agency that it will actually cost more than what you can get from your own car insurance company or as provided by the credit card. It isn’t abnormal to find that rental car agencies will charge almost double for the insurance coverage. This is a part of their profit model to catch customers with no insurance so they are forced to get it or not get the rental car.

When it comes to rental car importance, coverage is certainly necessary. However, rental car agency coverage isn’t necessary. It will do you good to check that you aren’t already covered from other sources so you don’t double up on insurance as the rental agencies normally want you to. Check to see what insurance coverage you already have and only buy it from the rental car agencies if you don’t have the coverage and genuinely need it.

You don’t need to be in the dark with rental car insurance any longer.

There are many reasons why young drivers are considered a higher risk than those who have some driving experience under their belts. Along with all the risk factors, young drivers do not have the same experience in avoiding minor or major incidents that an older more seasoned driver is going to have. This is the reason that young drivers will have to pay more for their insurance when they are ready to drive.

Consumers can look for free car insurance quotes the old fashioned way by looking through the phone book and calling several major and independent insurance carriers in their area. Surfing the web for the best car insurance deal that meets your needs can eliminate this time-consuming process. The Internet gives more detailed information about insurance agencies than phonebook advertisements. Find out exactly what auto coverage is needed for your vehicle that fulfills your state requirements.

It can even be more time consuming when trying to get a young driver insured. There are web pages that will actually do the comparison for the customer to save them even more time in their searches. After the customer fills out the information, only those companies that have plans that match the criteria and will send back quotes. This can weed out those plans that are not going to work for younger drivers.

While typically insurance prices are going to be dependent upon the age, sex and type of car that is being driven, any driver who has not reached twenty five is going to automatically have to pay more for their premiums. This is because this is the highest risk group of drivers. By getting free car insurance quotes, there can be some advantages in finding the lowest rates for that demographic.

There are some agencies that make concessions for those teens who maintain a certain grade point average as an incentive to use their insurance. There can also be a reduction when the young driver is added to a family policy rather than being on their own policy. Comparing quotes is going to show which of these options the best is.

Bear in mind that free car insurance quotes is a great option for cost-effective insurance shopping for teen drivers. Compare low quotes with high quality benefits that will safely protect your teen as well as provide maximum coverage that complies with state laws, such as laws involving out of state travel while your teen is traveling or away at school. Taking these important steps will help to promote safe, responsible driving.

Safety is always the key. Low rates are great, but make sure the policy has the comprehensive coverage needed. Surf the Internet wisely and choose the coverage that best suits the teen driver in your life.

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Several motor insurance companies within the U.K offer low cost Car insurance quotes. There was an outstanding rise in the Car insurance industry. Each company offers attractive packages together with superb discounts to entice the customers. The rates offered by the auto insurance companies are being revised usually and therefore obtaining low-cost motor insurance isn’t a so much fetched idea anymore.

For the convenience of the purchasers, the Car insurance firms now provide a number of plans. One of these plans is the Flexible Installment Plan; according to the present set up you are doing not must pay the lump add quantity of premium annually. You’ll divide this total of money into bi annual, quarterly or monthly installments whichever is sweet for you. There is a protracted list of discounts and plans that can get you a low cost Car insurance.

It has been observed that mature drivers with a excellent or near excellent record are largely eligible for discounts. auto insurance corporations conjointly prefer such shoppers as they’re straightforward and reliable to deal with.

Not all drivers have a excellent driving record and quite some typically find themselves on the incorrect side of the law. Insurance firms typically avoid such drivers or offer insurance with quite high premium. There are some companies which specialise in providing low-cost Car insurance to banned or convicted drivers.

Another cluster of individuals who face high premiums are young drivers. The speed of premium for young drivers is quite high because their inexperience will cause accidents and therefore they persuade be expensive to the insurance companies. However all isn’t lost for them. With a little tact and patience even they can get a low cost Car insurance.

Automotive city insurance also tends to be costly. This is because of the less parking places which are secure. Adding anti theft gadgets in your automobile will lower your premium so can secure personal automotive parks.

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Like automotive insurance, truck insurance is also compulsory. Van drivers are thought-about a lot of risky by the insurance corporations than automotive drivers. The reason for this discrimination is that the van driver spends more time touring as compared to the automotive drivers. On a median, a typical van driver is moving around for a lot of than forty hours a week.

Secondly, the probabilities of an accident for truck drivers are more than car drivers. Due to these reasons, low cost truck insurance is hard to find.

When insuring vans, the insurance companies examine the type of truck you’re driving, its mileage and the condition of the van like how previous it is. Alternative factors influencing truck insurance are the amount of hours you’d be using it and whether you are driving the truck for personal use or for industrial purpose. Business van insurance is of 2 types (i) for a single van; (ii) for a fleet of vans. For the one van, the insurance largely depends on the scale of the truck and its load carrying capacity. For a fleet of vans, the Fleet insurance is recommended. It covers each and every truck in your possession.

Like car drivers, van drivers can conjointly avail the various discounts offered by the insurance corporations to get cheap van insurance. A number of the points which go in your favor are if you’re a member of the “Roadside Assistance Program”, you’ve got taken a defensive driving course for safe driving, your workplace is near your home etc. These points can easily get you low-cost truck insurance.

Other things that may profit you are your credit card record and in fact you’re driving history. If in case there are some tiny repairs to be done than it’s higher to pay from them from your wallet rather than making a claim. Some insurance corporations offer a reduction if you’ve got not made a claim within the past 2 years. It is up to you to make use of the discounts to urge cheap van insurance.

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