Car Insurance Tips for Teens

Having a teenage driver in the family always means additional, if not higher, car insurance premiums. Understandably so, since teen drivers, based on glaring statistics, have a high risk of driving accidents. But having a teen driver is inevitable, and as such, the only way parents can do is learn how to lower the cost of car insurance for teens. This is quite easy. The hard part is if your kid can put up with the cost-cutting. Here’s how:

1. Don’t allow your teen driver to drive a sports car, because a fast sports car plus a furious teenager equals skyrocketing car insurance premiums. Premiums are basically based on horsepower ratings. Stick to a simple vehicle that does not belong to the list of cars with high theft rate.


2. If you can work your way around with the teen, opt for an older and heavier car instead that is safe and simple in all angles when the insurance agent comes in to check. Plus when you purchase it in full, you can get away with the collision and the comprehensive insurance segment since a liability insurance would suffice for such types of cars.


3. Make sure you have guided your kids to become good and responsible drivers early on. A teenager’s driving history is one of the crucial data that car insurers look at when finalizing the premium rates. If the kid was involved in minor car damages like fender stains, do not claim insurance since claims together with traffic tickets history can send the car insurance premium sky-rocketing.


4. Make your kid understand that if he or she stays a good and responsible driver, the cost of the car insurance will eventually go down over time. Encourage team work, and make your teenager a part of the family strategy in beating the hell out of high-priced car insurance policies. Most importantly, it will keep all of you safe and sound on the road.

Helpful Tips on Buying Cheap Used Car

Buying a used car these days could be a good idea or a bad one, depending on how much you know about the whole gamut of second-hand vehicle purchase before you lay down the cash and drive home with the first used car you test-drive. For all you know, what little savings you were after could transform into a huge and recurring financial obligation just because you fail to see “the signs.” Here are fool-proof tips on buying a used car.

1. Distinguish between a private seller and a dealer. The main difference here is mainly the profit interest. A dealer, by his or her nature, would have to charge a price for an embattled used car at a commission rate fixed by the dealership company. A private seller may be out for simply earning something practical from a formerly owned car, and would be open to a friendly and more personal negotiation. Here’s a tip: call the person selling and if you are asked “which car?” that means you are dealing with a dealer.


2. When meeting the seller, go to their home instead of the car being brought to yours, so you’ll know it is really their car. They should be able to have mastered how the car runs. Have a good look, feel and gut-feel of the vehicle in the owner’s normal environment.

3. If you opt to purchase a used car from a dealer, that is fine too. Only, be careful about the track record of the dealer and the shop. Ask around. Also, check for warranties (how much and how long the coverage is), their financing programs, and get alternative quotes from other dealer shops for the same vehicle type.


4. Car auctions are also a good place to buy a used car. Only be sure that you know about the whole car auction process. Bring someone who knows if you don’t. Find out if other fees would apply after the “hammer price.” And test-drive your purchase as soon as possible, since car auctions allow little time for returns.