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Auto Insurance Savings for Student Drivers

Auto insurance rates are highest for student drivers and those under 25 years of age. The reasons for the increased rates are due to the young driver’s inexperience and statistics show an increase in traffic accidents for young drivers. Auto insurance companies can combat these higher rates by offering a number of discounts to lower the overall cost. Lower insurance rates are available by becoming eligible for these discounts:

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The Good Student Discount

Good student discounts are discounts offered to students who maintain a 3.0 grade point average. To be eligible for these discount students must be between the ages of 16 and 24 and show good scholastic accomplishments such as making the dean’s list, honor roll or achieving high SAT scores. The student remains eligible for the discount, which could be 15 percent or more as long as the grade point average remains the same. The student may be required to submit a copy of the student’s report card or school transcript as proof of eligibility.

Safe Car Discount

Safety features on newer cars such as anti-lock brakes, airbags, and a passive restraint system lower the rates for student drivers. Safer cars generally mean fewer accidents and fewer insurance claims, which save the company and the policyholder money in the end. Reduced rates are given to drivers that have no accident claims.

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Discounts for Driver’s Education Courses

Many insurance companies offer discounts for student drivers that have taken a driver’s education course or defensive driving course. These courses provide the student with the knowledge to avoid traffic accidents and be a safer driver, which also lowers the young driver’s risk factor. These courses can be found by checking your local directory or performing an Internet search. Check with your insurance company for state-specific eligibility and requirements such as certificate of course completion.

Adding Student Drivers to Existing Policy

Parents can add student drivers to an existing policy for less than if the student applied for a separate policy. Assign the student to an older model vehicle for more savings. The policy will cover the student when driving this vehicle. The premiums will go down year after year as long as the student remains on the policy. The longer the student has been driving the less risk they pose to other drivers.

Additional Ways to Save Money on Auto Insurance

Additional discounts are offered for older model cars, multiple cars on the same policy and cars with security or anti-theft systems installed.

Things to Consider When Buying Auto Insurance

In my last blog I talked about things to consider when buying homeowners insurance. I also spoke about the costs associated with the insurance. One thing that can help to offset the premium is to combine home and auto insurance with one carrier. Many companies offer up to a 15{15f1a233c156bea60e24ed4b0a9c44f31f66ebebce98603cd69dbfddc9938677} discount for the business.
 
Other factors that your agent will look at to determine the most effective, cost efficient coverage is the following:
 
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AUTO INSURANCE

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  • Year, make and model of vehicle
  • Address car is garaged
  • Drivers – all household members eligible for coverage
    • Date first licensed
    • License # and date of birth

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COVERAGES

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  • Full physical damage coverage required if loan is involved
  • If more than one vehicle on policy multi-vehicle credit could apply. Also, account credit would apply if home/auto with same company

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Many companies offer various credits and discounts. The best advice is to consult your agent and discuss your coverage needs. Take advantage of all savings by having your agent assess your needs on a yearly basis.
If you would like to read our blog on Things to Consider When Purchasing Homeowners Insurance please click on the following link:

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Things to Consider When Purchasing Homeowners Insurance

Purchasing a home for the first time can be extremely overwhelming. There are so many new considerations, for example finding the right mortgage lender, interest rates, loan amount, space requirements, inspection and homeowners insurance to list a few.

This article is meant to help first time buyers consider some common items that may have an effect on your homeowners insurance:

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    • Is the home in a flood zone? If so, this could substantially increase insurance costs.

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    • Do you own a dog? If so, some insurance companies may deny you home owner’s insurance coverage or increase your premium due to the breed of the dog or what is referred to as “high-risk” breeds, including but not limited to Pit Bull, Rottweiler, Doberman, German Shepherd, etc.For more information regarding “high-risk” breeds contact your insurance agency.

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    • Do you own a trampoline? If so, this could increase insurance costs.

 

  • Cost of Homeowners Insurance:

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The cost of homeowners insurance is based on the cost to rebuild the residence from the ground up. The market value of the home does not play a role in determining the cost to rebuild.

For example, you could buy a 750 square ft. home on Beacon Hill in Boston and have paid $1 million for it because of the land. However the insurance value might only be $ 150K because it is only 750 square feet or the cost to rebuild (i.e. land doesn’t burn).

Generally the insurance value is estimated using a cost to rebuild figure ranging from $185 to $225 per square ft. to rebuild a “normally” constructed home. However, if the house has several upgrades using high end finishes the cost could go as high as $500 per square foot or higher.

As you can see there are many variables that go into determining the cost of homeowners insurance. The best advice is to contact your agent as early as possible in the home buying process so they can give you an estimate as to what the expected cost may be.

Life Insurance Buying Tips

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Life insurance can be a very confusing topic to many people who are looking into coverage for the first time. We have put together some helpful things to keep in mind when you begin the process:

  • How long do you need the coverage to last? By determining this upfront you can usually decide whether Term or Permanent insurance is best for you.
  • Figure out the amount of coverage you need. There are several insurance needs calculators available today over the internet but in short you are trying to determine the number of years of income you are trying to replace on a working spouse. The second major reason to purchase life insurance is to cover the amount you owe on a mortgage or bank loan.
  • Depending on the type of coverage you are looking for you can either begin your research on the internet or by speaking with an insurance broker if you need help calculating the correct amount or type of policy? Insurance rates are the same whether you contact the insurance company directly or work through a broker so you may want to seek some help with this step.
  • Look for an insurance company that is Financially “A” rated or better with one of the major rating services such as AM Best or Fitch.
  • Make sure the policy has a liberal conversion policy. This feature can allow you to continue your coverage in later years even if your health has declined.

Once you have completed your research and found the company with the most competitive rates for what you are looking for you are now ready to schedule your medical exam and start the application process. This final step usually takes 3-5 weeks before you are approved and have your new coverage in place.