The idea of car insurance is brought in by the British government for the first time in 1930. The law demands that everyone who owns and drives a car, should sign an insurance contract, which will cover possible damages to the car, the person responsible or the person who gets injured, in case an accident occurs. In other words, car insurance is protection that you pay for in advance, if a supposing incident is about to happen. Every driver should have at least a third-party liability car insurance, which means that the insurance is going to provide coverage for the injured person medical bill. The details and circumstances, under which each item is covered, are specified in the insurance policy.
Only trouble could happen to anyone who drives a car without having insurance. It is not a smart move and it is certainly not worth the risk. For example, you could have your car crushed, get disqualification from driving, or have a criminal conviction. These things do not have to happen – everyone should be responsible for their own action, although liability plays the biggest part. Moreover, liability is the actual reason for drivers to pay for car insurance.
There are certain discounts that may be available, depending on the particular situation.
For example, if you are looking for car insurance for teenagers, you will not really find any low insurance rates. However, having the right information can help you lower them.
If you have a teenager, be sure that he or she takes a driver’s education course before they apply for their learner’s permit. This will save you 10% to 15% on the car insurance, when the time comes for you to add the teenager to your insurance policy.
Another helpful thing to save you some money is if you encourage your teenager to get good grades. Many car insurance companies reward students that get good grades with lower insurance rates. It just makes sense for the insurers that students who study hard and get better grades will become much more reliable drivers that follow safety rules and road regulations. The reward is 15%-20% discount on your insurance premiums. Again, it is teenagers we are talking about, so if they do not seem interested you could try with this explanation: bad grades = no low rates = no driving.
A big mistake for you to do would be buying your teenager an expensive sports car. A cheap car could save you a good amount of money for a year than an expensive one in car insurance premiums.
Choosing the highest insurance deductibles you can afford, is going to save you some money as well. Although it seems like you are paying more over less, you will come to realize that the sum of money you save on monthly car insurance premiums will be more than just to make up for it.
The last, but not least thing to remember is making sure that you compare policy rates by different insurance providers. If you are going to switch insurance companies because of lower rates, keep in mind that you are going to save more money if you wait until it is time to renew your current insurance, because most insurance companies have cancellation penalties, if you cancel the coverage earlier.
