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You just got your driver’s license and first car? Congratulation! There is a brand new Audi right there, let’s drive around that place for a while! Surely, nothing will happen, right? Next, you guessed it, a letter demanding $25,000 repairing fee slapped you so hard you will travel back in time. Something you should know about bao hiem o to bao viet. You might laugh itoff, butfor drivers who are broke and do not want to survive on ramen for half a year as I did, read this article and find out some tips on how to get car insurance.

How to limit the cost of your insurance Why is insurance costly
Before we begin, it is critical that you understand why insurance cost for an inexperienced driver or young person is typically more expensive. Think about it from a logical perspective then and you will see. Young and inexperienced drivers are generally more reckless, impatient and immature. Soyou guys are more prone to accidents, and there is a need to increase insurance cost on you.

Especially when the amount of compensation usually far exceeds the amount you pay annually. First and third party insurance This should be general knowledge for everyone now, but just in case some readers are not aware ofit, I will quickly go through it. First-party insurance This covers almost if not everything forthe drivers. The coverage usually includes repairment fee for both your and the other driver’s cars, regardless of whose fault it was that caused the crash.

Though, itis best to talk to the insurance provider to make sure you understand what the limit of your coverage is, before running over the Lexus parking over there. Third-party insurance This is the bread and butter insurance for almost every broke young drivers out there. The coverage is minimal, but it pays repairment fee for the other driver and helps you lose weight by encouraging you to ride a bike to work.

Pick a cheap car I fully understand the sentiment of getting a cool-looking vehicle in the mid-price range as your first car. However, if you choose to doso, you would have tomake sure you either have enough money to cover the additional insurance cost, or forget about insurance and drive like your grandpa to make sure there is no accident. Although the latter advice would not work for people living in a state where having car insurance is compulsory.

If you have already tried to get a quote for car insurance before, you would have noticed they ask the value ofthe vehicle insured, that is one of the cost drivers of your insurance cost (pun intended). Do not modify your vehicle Alright, look, guys, I know car modifications might make you feel like a bad-ass in front of other girls in high school, but in the adult world, not only cheap modification would embarrass you, your wallet also sustains damage.

There are insurance providers out there who would charge a ridiculous amount extra just for modification. Although there are people who will recommend getting cheap modification parts would help lower the cost of insurance, I would highly advise against it. Even ifthe insurance providers tell you that it might or might not significantly affect the evaluation process, I still think they typically have an unfavorable policy against it.

The reason is that, inmy personal opinion, a modified car might or might not have a direct impact on accident, but a badly modified one with cheap parts is surely going to male fly straight into that limousine. Existing policy to aid young drivers Depending on where you live, you might be able to find providers who aim at young drivers as their primary consumers. This type of providers is known to have implemented a variety of policy to provide financial aid to drivers within a specific range of age (mostly 18 ~ 25).

To qualify for this type of policy, you would have to adhere to one or some of their conditions, including: Installing an app to track your driving behaviors Only a certain amount of kilometers can be driven annually Vehicle to be used for specific purposes or ina certain area only These conditions might differ depending on what the providers believe would bethe main factors contributing to an accident in inexperienced drivers. Make an appointment, and see what they have to offer.

Annual insurance package Sometimes, providers might try to increase sales as much as possible by adding incentives to the yearly insurance package. Soif you are thinking about long-term financial benefits, go for the annual package. They should be cheaper than the monthly payments Though, just to be safe, remember to some quick math to compare if it is less expensive as advertisement can be misleading sometimes.

Though, if the amount of money isn’t that much cheaper then consider getting the monthly deal. This would allow you a chance to switch to a cheaper provider and not get stuck ona bad deal for a year. Conclusion The tips and advice mentioned might or might notbe applicable depending on your location, but generally, some of them are applicable almost everywhere.

Insurance is vital as it would get you out of a tight spot should you make a mistake in your first few years of driving. However, they will also get you into financial trouble if you end up getting yourself into a horrible deal. Itis quite Ironic, isn’t it? Insurance is supposed to provide some assurance but at the same time can be quite a double blade by giving you anxiety. Anyhow, good luck on your insurance deal hunt and drive carefully to avoid damage to you, others, your car, and your wallet.

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