posted
26/10/09
Your parents warned you that having teenagers was a good way to go insane. You believed them of course, they raised you! But you had no idea at the time that one of the biggest headaches was when your teenager took a job that removed them from your auto insurance policy. Very often the parents of pizza delivery employees find that to their consternation, their teen’s delivery job is going to be a financial issue, but you must make sure they are properly covered.
Pizza Delivery Drivers aren’t covered by automobile insurance companies. Surely you recall all of the information you had to enter into the forms on your first insurance policy. The extensive questions, about everything it seemed, felt invasive and intrusive. Why would an insurer want to know everything about how and when you used your car before they would even agree to give you a price quote? Actually, they need to know a lot about where, when and how much you’re on the road. More time and more miles on the road mean the driver is more likely to be involved in an accident and for the company that means paying out for claims. You got it, more claims mean higher insurance rates.
It’s pretty obvious where we’re going on this one. In comparison to a nice, safe office job, a person who is on the road during work hours becomes a higher insurance risk. Most car insurance companies just would not take such a high risk for non-commercial premiums. It may come as a rude shock if your teenager is involved in an accident when delivering pizza and the company refuses to cover the damages. Thousands of dollars could be on your bill, and there could be nothing you can do about it.
Getting a Commercial Auto Insurance Policy These are the few things that parents must know before waving their teenager goodbye on their path of pizza delivery. Firstly, the insurance offered by their employer must be queried. Technically, companies that have delivery drivers in their staff list must carry insurance to protect them. Some of these companies are wise and use company cars as this lets them keep auto insurance rates low. This is because they would know the exact number of their cars on the road at any time.
Still others will use a non-owned style policy. This kind of insurance will work for delivery drivers using their personal family cars. However, it’s important to note that non-owned auto insurance only provides liability coverage. If your car gets banged up, you’re outta luck. That can be fine if you feel that the overall risk for other problems is low and your teen isn’t going to be doing the job for a very long time. But if there’s risk of other problems cropping up, or your child wants to be a delivery driver for a long time, you’ll definitely want to talk with the employer and see what can be done for a more comprehensive policy.
As a last resort, you can always just purchase outright a proper commercial auto policy. The cost for this kind of insurance is not insignificant, so it’s not a decision to make lightly. However, if you feel that the risk is there or your teen’s making a long haul of the job, and you have no other options for getting the right coverage, you should probably go for it. No matter how pricey it is upfront, it’s still less than the expense of paying for car repairs and the like yourself. As they say, better safe than sorry.
Susan Reynolds is the webmaster for a leading South African Insurance Provider who specialises in Car Insurance Options.
categories: Car Insurance,Cars,Automobiles,Insurance,Personal Finance,Vehicle Insurance
posted
25/10/09
Getting insurance for your car should be high on your priority list and you need to do a fair amount of research looking for the right policy before choosing your car insurance. Proper planning and some effort can help you save a considerable sum of money on your policy.
This process can start as early as the time of the vehicle’s purchase. Before choosing your car model, you should enquire about type of car insurance you will be able to obtain for that car and what it will cost. Online quotations are normally less costly than the ones obtained otherwise, so it is advisable that you compare such online quotes from different car insurance companies.
You must keep in mind that yearly payment of premium is less expensive as the insurance company would levy interest if you make the payment in monthly instalments. Therefore, it is a good idea to pay the total amount in one go when you are buying insurance.
Another method by which you can save on your car insurance is by maintaining a good driving record. In a majority of nations, the driving record is the primary consideration for companies while deciding upon the premium of car insurance, as it makes them aware of the level of risk they are undertaking. You can also reduce costs on your car insurance premiums by putting in place state-of-the-art car security systems like anti theft equipment.
You should also continue being a customer of your existing insurance company, as most companies ask for lower premiums from loyal policyholders. But you must be aware of the newest insurance plans present in the market, and must ask for discounts when you renew your policy.
While cost is an important factor, you should always pick an appropriate insurance, which covers a number of unpredictable incidents like robbery, natural disasters, and other damages. If you select the correct motor insurance scheme that fulfils your requirements and is inexpensive, you will be secured against accidents and other mishaps.
Learn more about reasonably priced car insurance and get a free car insurance quote in an instant.
categories: insurance policy,investment,business,vehicles,marketing,insurance,car insurance,motor insurance
posted
19/10/09
Teenagers and automobiles can often be a dangerous combination. Hormones and inexperience behind the wheel can often have deadly results. This teenage propensity towards accidents is even more reason to make sure your teen driver is insured. The problem? Insurance companies know your teen driver is more likely to be involved in an accident, and they will raise your premiums accordingly. However, taking some time to be a smart consumer can help you obtain significant savings.
Coverage for a young driver can be obtained from any good auto insurance company, your current auto insurer will have the facts you need to shop for this important service. One of the factors that complicates shopping for your teen’s auto insurance is one of cost; the premiums are much higher for young drivers. This is because insurance firms know that the highest risk group is teenagers, resulting in higher claims, therefore lower profits. As a parent, it is up to you to look for methods by which you can keep your premiums as low as possible.
Look for a company that offers the best rate for drivers in the age range you’re shopping for. Among the ones you’re considering, it’s your job to choose the one that offers the best coverage for the monthly premium rate. With the internet, we now have many more choices that we did previously. There are companies whose dedicated task is to shop for the best quotes for your needs among many different insurance providers. The benefits and exclusions are listed side-by-side to assure you are receiving quotes on a per-case basis. There is simply no getting around the fact that until the young driver turns 25 and has little or no negative history, he or she will not receive a competitive rate compared to other drivers. If you come across a company that costs substantially less than the others, that should be cause for some suspicion. Read the fine print, often they also have substandard coverage, perhaps even less that prescribed by law. These companies may leave you hanging when you try to process a claim.
A second way to be a smart consumer is to look for companies that offer discounts especially for your teen. Many insurance companies equate teens who receive good grades with lower risk, so make sure to ask about any ?good grades? discounts for your teen. As an added incentive, saving money on car insurance may be the push your teen needs to hit the books more often. Parents with teens living at colleges and universities should also look into discounts; the premium may be lower in the area where the car is located during the school year.
There are other steps you can take prior to needing insurance your teenager in order to set the stage for lower premiums when the time arrives. Successful completion of a driving school or school offered driver?s education course can make it possible to negotiate lower insurance premiums. Another consideration is the type of vehicle you or your teen purchase for their use. A low-risk vehicle, such as a good old sedan, would be advisable at this point in your teens life. Simply stated, no sports cars, SUV?s, or luxury cars, unless you?re willing to cough up the money for the higher car insurance premiums – which, by the way, is not highly recommended. Your teen should pay their own vehicle insurance premiums, in an effort to increase their responsibility by keeping their vehicle in good condition and their driving record clean and clear of any violations to ensure good insurance premiums in the future.
Susan Reynolds is the webmaster for a leading South African Insurance Portal that provides consumers with the best Car Insurance Options.
