I’m a mother of a 19 year old kid. He is starting a delivery service and I am worried about car insurance. What can I do as a mother to find the cheapest  commercial vehicle insurance.

Marian

Jackson, MS

Your kids will not drive their toy cars forever. Eventually, they will grow and learn to drive the real thing. Although the idea of it can be uplifting (knowing your babies are grown up and starting to be independent); it can also be daunting. It is simply because they are inexperienced and they are not yet fully aware of the dangers of the road.

Well you can always do something about it. You can be a role model to them. Teach them how to drive safely. Enroll them to driving classes. However, we can never tell when accidents will happen. They might not find it but it can find them. Let us face it. The world is full of careless and irresponsible drivers.

Therefore, if prevention does not work, the right protection you can give to them is car insurance. However, there are certain things you need to learn about car insurance for young drivers.

First, expect that purchasing car insurance for young drivers will wind you paying for higher rates. As mentioned above, most of them are inexperienced drivers. Therefore, they are most likely at risk for accidents. Second, statistics have proven that younger drivers are also prone to accidents. Insurance companies consider age as a factor for calculating premiums. In this case, it will normally be high. Third, the gender of your kids can also affect your rates.

However, you can always save if you decide to cover them under your policy. You can also inspire your kids to get good grades at school. Encourage them to keep a clean driving record. Lastly, pick out cars, which are safer to drive. Eventually you will be entitled for discounts to lower you rates. Doing these things will not only protect your kids from accidents; your savings is also ensured.

I’m from South Carolina, and I have been with the same car insurance company for many years now. Since my insurance policy is almost expired, I went to the company to have it renewed, but they refused to approve it. What could be the reasons to refuse car insurance renewal?

Steven

Greenville, SC

In South Carolina, it is legal to drive uninsured, provided that you pay the annual fee of $550. You also need to be financially responsible if you cause a car accident. With medical and repair cost shooting up each year, having car insurance coverage will save you from the worries of having to pay huge amounts of money if ever you do cause an accident. That is why it is very important to consider a few things that may become reasons for refusal of car insurance renewal.

Firstly, you need to get an online review of your current car insurance coverage. Check out other companies’ websites to get an idea of the prevailing prices. Try to read on the pros and cons about the options available since many websites give out different options for insuring your car. This way, you will know if you really are getting your money’s worth from your current car insurance company.

Secondly, you need to review the points that may affect the favorable decision on your policy renewal. If you had multiple accidents in the past, your insurer may refuse to renew your policy based on this since you have a higher potential of filing claims, which could mean a great financial loss for the car insurance company. If you got multiple moving traffic citations, it could also affect your policy renewal. Although you can always take a driver improvement course to remove the tickets, the citations will be on your driving record, which is periodically checked by insurers.

If your renewal is refused, shop around. Companies use different methods in calculating risk. There always are car insurance companies out there that cater to those who have been refused by other insurers.