Will My Greensboro Car Insurance Premiums Increase Once My Teen Has a License?

Operating a motor vehicle carries with it certain risks, as is evidenced by the number of minor and major auto accidents that occur on our roads every day. Car insurance is a means for the potential risk of financial loss resulting from owning or operating a vehicle to be shared. Car insurance companies are in the business of taking on the financial risk of their policyholders in exchange for a predetermined amount of money (premium), should said policyholder suffer a loss regarding their automobile.

 

Who Determines Your Policy Cost?

The amount of Greensboro car insurance premiums you're charged for your auto insurance policy is directly related to the amount of perceived risk you represent to your insurer. Lots of data figures into the calculations used during the underwriting process, including:

• Age
• Geographic location
• Driving history
• Make, model and value of your car
• Credit history
• Claims history
• Coverage types and amounts
• and much more

Drivers with a poor driving record or poor claims history represent a higher risk to their insurer and will, therefore, be charged a higher rate for their Greensboro car insurance premiums. A more expensive car or full comprehensive coverage will also cost more in the way of premiums because the insurance company's exposure is increased and, in the event a claim is made on an expensive or fully insured automobile, the claim will be higher.

Experience is a Big Determining Factor

A driver's experience is a huge factor in determining the amount of risk he or she represents, especially if they're below nine years of driving. It's been proven statistically that new drivers are more likely to be involved in an accident due to their lack of driving experience. When a newer driver takes out an auto policy, he/she will be charged some of the highest rates of any drivers. If a teen living at home is added to his or her parents' policy, it will cause a significant increase in the policy cost, although generally less than what the teen's individual policy would cost.

A recent study found that the amount of increase a married couple adding a teen to their car insurance policy depends greatly on their geographical location. At the time of the study, the most expensive states for adding a teen driver were Arkansas (+116) and Utah (+115%). Fortunately for you, North Carolina was one of the lowest at +59%.

Does My Greensboro Car Insurance Cover Rentals?

Even though you may have had your Greensboro car insurance policy for a number of years, there's still a chance that you're not totally clear regarding what your policy actually covers. One question we often hear from our customers is, “Does my car insurance policy provide coverage when I'm driving a rental vehicle?” The answer to that question is, “Probably,” but not necessarily.

Much depends on your specific Greensboro car insurance policy and its particular provisions. Everything is spelled out in the policy itself, but many policy holders either haven't thoroughly read their insurance contract, don't understand what they've read or, over the years, have forgotten what their benefits are. Here's what you can do.

Make a Call

As always, the best solution to the question about rental car coverage and your personal car insurance policy is to contact your agent or broker and ask. This should be done in advance of any occasion where a car rental is planned. You should also call your credit card company to find out what rental car insurance benefits, if any, they provide. Many major credit card companies include rental car insurance benefits when you use their card to pay for the purchase of your rental vehicle.

What You'll Likely Find

Generally speaking, you should find that your personal car insurance coverage will extend to a rental car, in which case an accident you cause will be covered by your liability coverage to pay toward losses for damages done to other people or property as a result. These benefits will typically pay up to the benefit limits of your policy.

Collision coverage carried on your personal auto policy should pay toward damages sustained by the rental car you were driving and your comprehensive coverage should pay toward losses suffered by non-traffic accident related events such as vandalism or theft. Be aware, however, that even having full coverage on your regular vehicle may not be enough to pay for every single charge that could be imposed by a car rental company.

What About That Credit Card Coverage?

Rental car insurance benefits provided by your credit card may possibly supplement or, in some cases, take the place of your regular car insurance when renting a vehicle. In many cases you must use your credit card to pay for your car rental (in full) and must decline the car insurance option offered by the rental company.

What Is Enough Greensboro Renter's Insurance?

While it's estimated that approximately 95% of homeowners carry homeowners insurance, according to the III (Insurance Information Institute), 37% of home renters have renters insurance. In some U.S. locations, rentals actually outnumber owner-occupied homes, and their risk of suffering a loss from one of the many perils covered by a homeowners or renters insurance policy is just as great.

A major reason fewer renters take out insurance is likely the fact that homeowners with a mortgage are required by their lending institutions to obtain homeowners coverage. While some renters may be required to have renters insurance as a condition of their rental agreements, most are not subject to such a requirement. Unfortunately, for many, the need for renters insurance doesn't hit home until a disaster occurs and they take a financial hit for something against which they could have easily been protected.

What Does Greensboro Renters Insurance Provide?

When you buy Greensboro renters insurance you're getting protection against the risk of suffering financial loss in several areas. The first is property protection covering your personal possessions in your rental home, if any are damaged or destroyed as the result of a covered peril, up to the policy limits. Your possessions are also covered if stolen. Be aware that if your rental home catches fire and burns down it will be your landlord's insurance that pays for rebuilding the structure but it will pay nothing toward replacing your personal possessions. You should also realize that, just like homeowners insurance, renters insurance doesn't cover losses due to earthquakes or floods. These perils must be insured against separately by additional coverage.

Renters insurance also provides liability protection in case someone is injured in your rental home or sustains personal damage caused by you, a family member or pet. Thirdly, many renters insurance policies provide ALE (Additional Living Expenses) protection. This is coverage to reimburse you if a covered event causes you to have to temporarily move out of your rental home.

How Much Coverage You Need 

                                        

To determine how much coverage you need, make a list of all your personal possessions, determine their value and add these up. Choose between actual cash value (retail value minus depreciation) or replacement value (retail value without depreciation). Expensive items such as jewelry, artwork, coins or other collectibles may be worth more than your coverage limits, in which case you should add a floater.