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| How to Make the Most of Your No-Claims Bonus & Car Insurance Rates In Florida - 9 Ways Under-25's Can Pay Less |
| Tuesday, December 9, 2008 |
How to Make the Most of Your No-Claims Bonus
Car Insurance Rates In Florida - 9 Ways Under-25's Can Pay Less
Motor insurance premiums can take a pretty big bite out of your pocket when you first start driving.
How can an under-25 driver attract cheap car insurance rates in Florida? It's as simple as reading through this article and doing the things suggested. A new, inexperienced driver will pay top price for car insurance - but there are ways to steadily reduce the amount that you pay out in premiums over time. Some will be things you can do right now; others will take a little time.
One of the most important is building up a no claims bonus through your insurer. However you'll be sure of one thing at the end: Lower car insurance rates in Florida. The longer you can go without making a claim against your policy, the less you'll pay for your insurance premiums over time.
1.
The reason for that is quite simple, really. Stepping up your deductible reduces your Florida vehicle insurance rate. As a good driver, you're not costing the insurance company money. However, make sure you don't choose deductibles that are more than you can pay easily. Going even your first year without an accident or a claim against your insurance can reduce your premiums by 30% in your second year. An insurer is only under obligation to make payments for claims after you've paid your deductible. While there's no standard no-claims bonus, most insurers follow something similar to this:
One year: 30% discount
Two consecutive years: 40% discount
Three consecutive years: 50% discount
Four plus consecutive years: 60% discount
Each consecutive year that you get through without making a claim will reduce your insurance premium further.
2. Typically, you'll reach maximum discount level after five consecutive years of no claims. Become a defensive driver. A discount of 60% is typical, but some insurers may discount it even further. If you have not done this, endeavor to enroll in such programs.
Holding on to your No Claims Discount
Holding on to your no claims bonus isn't always easy, but there are some ways to preserve the discount to which you're entitled. Defensive driving training programs that are known by your insurer will certainly bring down your car insurance premium. You may even be able to keep your no claims discount when you move your policy from one insurer to another, as long as you can prove that you're entitled to it.
3.
Bear in mind that third party accidents which are not your fault will usually not affect your discount, as long as their insurance company picks up the costs. Go for a car that has anti-lock brakes, an alarm system, daytime running lights and any other security and safety device. Other things that aren't your fault can cause you to lose some or all of your discount, though.
4. If your car is stolen or damaged by events beyond your control and your insurance company picks up the tab, you could lose your discounts. Settle for a smaller car if you really want cheap car insurance rates in Florida.
What's a Step-Back?
Most insurers won't wipe out your no claim discount for a single claim. There are cars that cost a lot to insure. Typically, they'll step-back your discount, usually by two years. If you have doubts, ask an insurance agent. If you have four year bonus, entitling you to a 60% discount, and have an accident for which you make a claim, your discount will probably be cut to the 40% discount you'd receive after two consecutive years without a claim. A costly car will typically cost more to insure.
Protecting Your Discount
It could be worth avoiding a claim if the costs for repairs aren't much higher than the excess on your insurance policy. Sports cars are normally costly to insure. If the costs for repairing your vehicle are not much more than what you'd pay when making a claim anyway, it could be more beneficial to just pay and make no claim.
5.
Many insurers will also allow you to pay a little extra to protect your discount, though usually you can only protect your no claims bonus if you've already built up to a full entitlement. If you're still a student, get good grades. Once you've gone six years claim-free, though, you may be able to pay a slightly higher premium to keep your no claims bonus even if there are future claims. Students who get impressive grades are rewarded by insurance companies with reduced car insurance rates.
Protected Bonus Cautions
Of course, your discount is applied to your new premium so your no claims bonus only helps a bit.
6. If you've had other claims against the policy, your insurer will probably take that into account when setting your new premium for the year. You can be on your parents' vehicle insurance policy. Your discount will remain intact, but the cost of your insurance could still go up because your premium is higher. However, to make this work you'll have to reside with them and have the car registered in their name.
7. Use the public transport system anytime possible. The more you are behind wheels, the greater the probability that you'll make a claim in no distant time. Lower mileage reduces what you pay as insurance premium.
8. Your credit history shows a lot about you. A good number of insurance companies will believe that you are more conscientious and, consequently, a lower risk if you pay your bills in a timely manner.
9. You will reduce your car insurance rates in Florida if you obtain and compare quotes from insurance quotes sites. You'll realize savings if you visit just one quotes site. But, you will get more by visiting at least three. . This offers you a broader basis for doing more extensive comparisons thus increasing your chances of getting better quotes.
Related Blog: owt ibey1.blogspot.com
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posted by Unknown @ 3:21 PM  |
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