Insurance companies generally prefer to sell their insurance to good drivers and may decide not to insure high risk drivers. Unfortunately, statistics show that one out of every three young drivers will have an accident each year. So, insurers do not think of new drivers as "good" drivers. This does not mean that you cannot get insurance, however.
There are several things about auto insurance that you should know BEFORE
you shop around...
Q. Do I have to buy auto insurance?
A. Most states require you to carry a minimum amount of liability coverage.
Many states have "no-fault" auto insurance systems; in other states, coverage
for medical costs for you and your passengers is optional. Coverage for
damage to your car is optional.
Q. How much will my insurance cost?
A. Prices vary widely. The type of car you drive, your driving record,
your age, your sex, where you live and how much you drive usually affect
cost. You may qualify for various discounts.
Q. Can I be added on to my parents' auto insurance?
A. If you drive a family car, you can be added to your parents' policy.
However, the cost of the policy will increase. (Some companies insure young
drivers only on a family policy.) If you have your own car, your parents'
company may sell you a separate policy but at a different rate that your
parents. New drivers seeking their own insurance frequently are referred
to state-run insurance pools, known as "assigned risk plans," where the
cost of insurance is higher.
Q. Do I have to be a certain age to buy my own insurance?
A. No. However, you must have a valid driver's license. Also, in many
states you must be 18 before you can own a car without an adult's name
on the auto registration.
Q. How often do I have to renew my insurance?
A. Auto insurance policies usually last six months. Some last one year.
You will receive a notice when it is time to renew your insurance.
Q. Will my rates go up or will I lose my insurance if I get into an
accident or get a ticket?
A. If you are not at fault in an accident, your insurance should not
be affected. If you are at fault, get a ticket for a serious violation
(such as drunk driving), or are involved in an expensive property damage
claim (such as crashing into a tree), the company will consider that when
setting the price for your next insurance policy. Your rates for the current
policy won't be affected.
See if you can lower your insurance rates. Many companies offer discounts
on the price of auto insurance to people who have passed an approved driver
education course or who have a B grade average or better. Take proof of
driver education and/or good grades with you when you shop for insurance.
Many companies also offer discounts if a car has anti-theft devices or
air bags.
Investigate the types and amounts of coverage you need. For example,
if your car is not worth much, you may not want to buy collision coverage.
Look for an insurance agent, broker or company representative that you
trust. Ask friends or relatives, or consult the telephone book. Ask questions.
Read your policy. As a contract, an insurance policy creates several obligations for both you and the insurance company. For example, the company must defend you in court if you are sued under the policy and you must give your insurer complete, accurate and timely information about any accident or ticket. Before you sign anything, go over the policy and any confusing language with your insurance representative and family.
Stay away from Leader Insurance company,
and their agents! They are very unprofessional, and do not listen well at all.
25 days of insurance can cost you over $500.00!