READERS, can you do better than the interviewees in this video? Tell us how many question you answered correctly!
Wednesday, February 29, 2012
Website Pick of the Week
Corresponding Post: High Costs of Car Insurance for Drivers
Website: http://promise.allstateteendriver.com/the-promise/
Bonus Website: http://www.
Making Teen Drivers Safer is an interactive Web site with videos and educational articles that can be very useful for drivers of all age, really.
Readers: Getting behind the wheel for the 1st time (or 900th time) has consequences that are somewhat predictable. However, drivers can make wise choices to avoid accidents, as well as the high insurance costs associated with bad driving. Educating yourself about all your options is important, but it is also important to understand the financial costs associated with your driving. Sometime we are so thrilled to take to the road that such concerns are often overlooked.
Try Me: Ask your insurance agent about the costs driving associated with YOU. Find out how much rates change based on your age, gender, type of car and driving record. How much would your rates go up if you have a DUI or get into an accident that was your fault? Also ask how you can get your rates lowered.
Tuesday, February 28, 2012
High Cost of Car Insurance for Younger Drivers
What was the most exciting day of your life so far? For many of you, it might have been the day you got you driver’s license. Teens rightly anticipate getting their driver’s licenses, as it means more freedom. However, with more freedom, you also take on more responsibility.
If you have your license, you are probably already tired of your parents and other adults making jokes about your poor driving skills. While this is not true of all teenagers, it is true that teens are involved in a large number of car crashes in the U.S. According to the Rocky Mountain Insurance Information Association, “In 2006 … crashes involving 15- to 17-year-olds cost more than $34 billion nationwide in medical treatment, property damage and other costs….” 2006 was the latest year reported when the article was written, and the amount could be more by now. That’s a lot of money!
Insurance helps protect you against the high costs you or your parents would otherwise be responsible for if you have an accident. The thing to understand about insurance, though, is that it varies based on who you are, where you live, and what kind of car you drive. Since teenagers are more likely to become involved in accidents, it costs more to protect them. And it also costs more to insure a boy than it does a girl. That seems unfair, right? The reason is that teenage males are more likely than teenage females to have accidents. You might also be begging your parents for a new car, but hold on: it will make the cost of your insurance go up even further. That’s because, the more the car costs, the more money it takes to repair or replace the car if something happens to it.
Even if you think you are the best driver in the world, you need insurance because you never know what the other driver will do. Think of that one friend who is a little scary to ride with; no matter how safe your own driving is, you can’t control what other drivers may do.
Maybe you don’t care about the cost of auto insurance because you don’t have to pay for it, but check this out: if you are a safe driver with low insurance costs, your parents are more likely to get you a car and let you keep driving; plus you will save money further down the road. When you do have to begin paying for your own insurance, you don’t want your past driving record to cost you money.
There are some things you can do to cut insurance costs. The simplest way is to drive safely. Speeding tickets and traffic violations WILL make your insurance costs increase, so follow the law! Believe it or not, at some insurance companies, having a high GPA will save you money on car insurance. So keep your grades up! Also, sharing your parents’ car rather than having your own is cheaper. This probably sounds awful to you, but it is something to think about. Insurance is expensive, and if you have your own car, consider chipping in to pay for your own insurance. And if your parents do buy you a car, don’t snub older, safer ones. They are cheaper all the way around than buying and insuring a brand new car or a sportier model. And finally, taking driver’s ed class saves you money on insurance, too.
READERS, we want to hear from you...
1. By law, what is the minimum auto insurance coverage you need in your state? (Don't forget to tell us what state your are in!)
2. If you are at fault in an accident, and the 2012 Lexus 450 SUV hybrid you ran into had two injured persons—a wife and husband—and they sue you and receive a judgment for $100,000 (the wife’s lost wages and medical expenses of $10,000 + the husband’s lost wages and medical expenses of $40,000 + property damage of $50,000 on the Lexus) and you only carry the minimum coverage (usually 25/50/10), how much will you have to pay out of your pocket to cover the judgment? (Go to our Facebook page for the answer. And we hope you will “Like” our page while you’re there!)
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