The rates for a 16 year old are determined in the same manner as anyone else’s rates are figured out. Information about the driver and their vehicle are evaluated with considerations about how often they will make future claims. If the driver is deemed insurable, a representative will extend an invitation by providing the premium price or estimate of how much a policy will cost for a given time period. The policy periods usually run 6 months or 12 months, depending on the company’s terms. Some specific factors are the driver’s name, age, gender, birth date, and address. The vehicle information needed would include the year, make, and model of the car, its annual mileage, and how the car is used (e.g. taken to work, driven to school). Have these things available before you apply for insurance for a faster submission process.

The final factor that will affect the rates is the amount of coverage purchased. Obviously, the rates will be cheapest when minimal coverage is bought, but that may not be the best choice for your teen. While it is mandatory that all drivers carry basic liability, full coverage will help prevent paying even more out of pocket expenses when there’s an accident. There may be a time when Comprehensive and Collision are not needed, for example when the car has little cash value and it would cost more to pay for that added coverage than it would be to replace the vehicle. Not every 16 year old drives a brand new, fancy vehicle so not every option is needed. Medical assistance through Personal Injury Protection or Medical Payment should be considered for the teen, especially if he/she does not have adequate health insurance.

It can be expensive to insure any driver, but it’s even more costly to insure a 16-year old. This group of young drivers lacks the experience needed to be considered a good driver and receive cheaper insurance. They have spent minimal time on the road and haven’t fully demonstrated they know of the best ways to stay safe. Often, it is young drivers who forget the basic laws and rules of driving resulting in accidents or the receiving of tickets. Car insurance companies plan on this and statistics prove it to be true, which is why they feel the need to charge outrageously high rates to 16-year olds. Unfortunately, there’s not much even the most responsible 16-year old can do to prevent this classification, but only at first.

Car insurance rates for a 16 year old can gradually decrease as the teenager learns how to show their level of responsibility more effectively. The less risk that driver shows, the lower their rates will be. It’s not an instant process and will probably take a few years to prove, but it’s worth the effort. Over time their safety will show, especially as the years increase without any signs of traffic incidents. By utilizing their “safety skills” they could keep a clean record all the way through college and see a huge decrease in their premium from when they started driving. We have some ideas that can be used by any 16 year old driver to better their situation and work towards lowering their rates.

Indemnity Dental Insurance – Traditional Fee-for-Service Plan

Indemnity dental insurance is another plan where the plan pays the dentist on a traditional fee-for-service basis.  Indemnity dental insurance is an insurance package where the policyholder can choose his or her own dentist and the insurance provider will be the one to pay that designated dentist your fees or, usually, around half of them.  This indemnity dental insurance plan allows you to select any licensed dentist for service.  An indemnity dental insurance plan is often called a traditional dental coverage plan or a fee for service plan.  You will need to pay a deductible on your indemnity dental insurance.

For those drivers who discover they are not eligible for this program, rest assured you can still find better rates by using our comparison method and searching for other discounts. When you give us your zip code and answer a short list of questions, we, in return, can provide to you a list of local insurers who are willing to provide insurance to you and their estimated prices to do so. These prices are based on the answers to the questions you gave. If these quotes are still not low enough, check out what discounts you are eligible to receive. Students can get cheaper rates if they get good grades, and senior citizens, usually older than 65, can also get discounts. Defensive driving courses can be taken to learn better driving skills while also earning a discount. Even if your insurance rate isn’t as low as you’d like it to be, you can get it lower with each policy renewal as you work on cleaning up your driving record and looking for discounts.

 As mentioned earlier, providers are mandated by the state to offer this protection. The driver cannot choose which company will provide this insurance. An application is filled out by the driver, who will then be notified if he/she qualifies. Upon qualification, the driver then enters in their zip code to get a list of “certified producers” who must then be contacted to apply for a policy. Thankfully, no fees will be added on to the price of the policy, such as booking fees or broker fees.

The driver must only have the vehicles covered by the Low Cost program, and no other policies. If the driver has another vehicle in the household that is insured by another company on a non-Low Cost policy, the driver will no longer be qualified for this program. Also, the vehicle that is insured through this policy can only be valued at $20,000 or less. A more expensive car is not allowed on this program.

The limits on this program’s policy is $10,000 for bodily injury liability per person with $20,000 per accident, and $3,000 for property damage liability, also abbreviated as 10/20/3. The normal minimum amount of insurance for a California driver is 15/30/5. There are additional coverage options that can be added to the policy such as medical payments with a maximum of $1,000, and uninsured motorist bodily injury per person of $10,000 and per accident of $20,000. These options do not cover any physical damage to the driver’s own vehicle, but there is an option to purchase comprehensive and collision coverage if so desired, and if the driver can afford it

According to the California’s Department of Insurance Website, all applicants must be at least 19 years old, and any college students must not be claimed as a dependent by someone else. They must have had a driver’s license for the past three years continuously. The driver must be classified as a “good driver,” which means they cannot have more than one point on their record and have only been at-fault in one accident, both within the last three years. Also, they cannot have any felony or misdemeanor conviction on their record either.

The driver’s income also plays a role in determining whether or not someone is qualified to participate in the low cost auto insurance program. The number of people in the household, related by blood, marriage or adoption, compared to the amount of income made during the year is crucial to being permitted into the program. For instance, households of 4 people can make no more than $55,125 a year, and households with 8 people cannot make more than $92,525 a year to qualify. The Department of Insurance site says, “Eligibility is based on the household’s gross annual income which must be 250% or less of the federal poverty level.”

There are some drivers who know the value of car insurance and also that it is required by law, but due to financial hardship they cannot afford to purchase even the minimum coverage. Luckily for Californians who fall into this category, there is a program called the Low Cost Auto Insurance Program, which makes coverage available to safe drivers who meet the standard requirements. These drivers have access to an acceptable insurance policy for a price that can fit their budget. It’s a program that is monitored closely, and there are heavy penalties for trying to commit fraud by providing false information in order to use the program.

Car insurance pricing is determined on a number of factors, including the driver’s record, place of residence, and the vehicle driven. It’s not hard to understand that people who drive recklessly are charged higher premiums than a person with a clean record, but it’s almost considered unfair that people who live in dangerous areas are charged higher premiums even when their record is spotless. Some drivers don’t have a real choice concerning where they live and may only be able to afford living in a high crime area. Law makers have tried to help these citizens by creating the Low Cost Auto Insurance Program that safe drivers can take advantage of and use it to purchase insurance.

Safe and responsible drivers who cannot afford the current price of car insurance, despite any discounts offered, should not be left to fend for themselves and drive without coverage. If they are in fact a safe driver, the chances of their involvement in an accident are slim, but there is a higher chance that their vehicle may be vandalized or stolen in their “high-crime” neighborhood, which is something the insurer would end up paying for. Law makers have imposed this program in California to help all drivers have proper coverage, which forces companies to offer a certain number of drivers this program.