Why Does My SUV Auto Insurance Cost So Much?
Reader Question
Why does it cost so much more to insure my SUV than it does my smaller Honda Accord? The Accord actually costs more to buy than my SUV did? What is up with that, and how can I get a lower rate on my auto insurance premiums?
Anna,
Las Vegas, NM
Car insurance companies take into account the amount of damage your vehicle does to other cars in an accident. Big SUVs may not sustain a ton of damage, but the other guy will. Car insurance quotes are easy to obtain online, as many car insurance companies exist to offer cheap insurance options to those who are on a budget.
Even if you’re looking for full coverage and willing to pay a high premium to get it, you can still find excellent policies and car insurance quotes online. Car insurance is meant to protect you against catastrophic losses, such as a major accident or the theft of your car. Be prepared to absorb minor losses yourself, and you’ll save a lot.
Car insurance premiums are based in part on the car’s sticker price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft.
Car Insurance Discounts For Seniors
Reader’s Question:
Just a quick question: I have a 90 year old parents, should they still be driving?
Henry
Los Angeles, CA
It depends upon their abilities actually. While the eyesight, reflexes, hearing, and other faculties of some seniors are more than adequate for operating a vehicle, the driving abilities of other individuals may deteriorate badly with advanced age. These factors cause auto insurance rate premiums to rise for motorists entering their 60s, and to increase thereafter. This increase is usually moderated by other factors, which may include discounts for fewer miles driven per year. Another way for your parents to improve their skills–and probably reduce the cost of their auto insurance–is by taking a driver improvement course.
Alaska Auto Insurance Discounts For Safe Drivers?
Reader’s Question:
Can you explain to me what a Good Drivers Plan is? I live in Alaska.
Ray
Anchorage, AK
The Good Driver Plan is a rating program offered by some insurance providers in Alaska and in most states. This Good Driver Plan reduces your insurance rate if you have had no traffic violations or accidents within a specified time period.
There is also a plan called Safe Driver Plan. This Safe Driver Plan has a rating system that assigns points for traffic infractions and certain accidents. Each point increases the surcharge percentage to the baseline insurance rates similar to a merit-rating plan. Therefore the Safe Driver Plan rewards motorists for being safe and without violation infractions or accidents while penalizing those with a poor driving record.
Good Driver Insurance Discounts
Reader’s Question:
What kind of insurance discounts can I get from insurance providers in Kentucky if I am turning 50 next month. In addition to that I also have a good driving record for several years.
Martina
Lexington-Fayette, KY
Congratulations on having a clean driving record for many years.If you are lucky enough to be retired, some insurance companies will provide a discount to retirees receiving a certain type of pension. There are also some discounts provided to the mature driver however many insurance providers start this discount at age 55.
There are also other discounts that you may want to ask for when renewing your car insurance or starting a new one. Some insurers will give you a discounted rate for low-mileage vehicle use, two or more cars on one policy or having loss prevention devices installed in the car (car alarm, etc). Many insurance providers in Kentucky will give long-time policyholders with no claims and a good driving record or safe driver discount.
Auto Insurance Company Question
Reader’s Question:
What exactly is the definition of motorist list only status? What is the difference between unrated and list driver?
James
Atlanta, GA
Each insurance providers has their own terms they use when they rate an individual for an insurance policy or how they list an individual on a policy. Each state has different requirements for household members and how they are listed, excluded, rated or excluded with surcharge on a policy.
Some states require that all residents be listed on a policy, but in some instances you may want to exclude coverage for a household member.
Since insurance companies have their own different definitions for drivers’ statuses, so you may consult with the insurance provider you know that is using this specific auto insurance terminology or read through the terms of their policy to see what their intended meaning is for “list only” and “unrated” motorists.
Third Party Car Insurance
Reader’s Question:
Can I drive someone else’s vehicle on third party?
Miller
Los Angeles, CA
You will need to read through the terms and guidelines of your third (3rd) party car insurance policy to check if it covers you driving other people’s cars. Insurance policies and their terms differ from insurance provider to insurance provider so that is why you will need to read your insurance policy and talk to your insurance agent to determine the specifics of your third party auto insurance policy.
Some insurance providers do though still extend third party coverage to someone’s vehicle that you operate with permission. Usually third party policies will also cover the policyholder to drive other vehicles on a third party basis.
It is necessary that you understand clearly the restrictions that apply to this type of coverage to check if your third party coverage permits you to drive another person’s car, and be properly insured, read through your third party car insurance policy and if you still have questions or concerns talk with your insurance agent.
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