Young drivers are expensive to insure. Such drivers, particularly teenagers, cause a high amount of traffic accidents because of their lack of experience and the fact that, due to their youth, they tend to be distracted drivers who also like to take risks. If your household is about to add a new driver, make sure that he or she understands that poor driving habits can result in higher premiums or a canceled policy. Here are some methods to help minimize the cost of a new driver:

·         Have your child complete a driver training class. The class’ cost is easily offset by lower insurance premiums. You also gain a more competent young driver.

·         Ask your insurer if it gives discounts to students with good grades.

·         Find a company that charges a rate according to the car your new driver usually drives instead of assigning him or her to the most expensive vehicle.

·         Try to discourage or delay your child’s driving to school. Insurers charge a lower premium for less frequent driving.

·         Build a long-term relationship with your insurer. Some companies reward longevity by forgiving a driver's first accident or minor traffic violation.

·         Increase your physical damage deductibles or, for older vehicles, eliminate this coverage.

·         If your child owns a vehicle, he or she should have a separate policy. However, if you share the cost of the car and its insurance, it may make sense to also own or co-own the vehicle. Your ownership interest lets you take advantage of a multiple-car discount.

·         Think carefully about giving a young driver his or her own car. Coverage for young drivers who have full-time access to a vehicle is very expensive. Make sure you balance the considerations of convenience, cost and safety.

Don’t pursue lower premiums blindly. It's important that your young driver is protected from the financial consequences of causing a serious accident. Further, you may need to protect yourself since you could also be sued for an accident caused by your son or daughter. You might consider getting higher limits of liability by purchasing an umbrella policy. Talk to an insurance professional about more strategies to keep your new driver affordable.

Besides worrying about the daily responsibility of running their business, commercial insureds may have other concerns such as rising insurance costs, reduced insurance availability, the impact on coverage due to experiencing recent losses, etc.

Businesses price their products to cover the costs of production as well as their sales and marketing expenses. Prices also reflect some post-sales costs such as repair or replacement under warranty. At one time many industries used a pricing strategy for their products that failed to reflect their true costs. They assumed that lower prices would promote increased sales and the higher sale volume would make up the cost difference. The strategy wasn’t successful. It hasn’t worked for the auto industry, the computer industry or the insurance industry.

The problems of the insurance industry became apparent within the turn of the century and were drastically exasperated by the events of September 11, 2001. That catastrophe substantially affected the insurance industry. Workers Compensation, a coverage that had never experienced a loss of that magnitude, was struck by a catastrophic loss. Property losses, business income losses, liability losses, life insurance claims, every category of insurance coverage affected by that man-made event.

The insurance industry’s beginning attempts to gradually correct their faulty pricing practices was replaced by the need for a sudden and violent change. For much of the current decade, insurance companies have had to handle many more claims being presented many years after their policies have expired. In the case of pollution, asbestos and employment practices, the industry is being asked to handle losses that policies weren’t designed to even cover.

Well, what can a business owner do to minimize their high insurance cost? Before considering sacrificing the amount of protection a business carries just to save money, consider alternatives. Some other solutions would be:

1. Review your coverage:

a. Take a close look at your insurance. Could you increase the deductibles to lower your premium?

b. Are you carrying physical damage coverage on commercial vehicles that aren’t worth it?

c. Are you insuring items you could replace out of pocket? Are there pieces of equipment that are insured when they could be replaced from operating funds without submitting a claim?

2. Review your exposures:

a. Could you reduce the premium by installing an alarm system or fire protection system? Would these premium savings offset the cost of the system?

b. Could you implement safety programs that would reduce the cost or make the insurance company more interested in providing coverage? For example: driver safety programs, back to work programs, safety training in proper use of equipment and job functions.

3. Identify your insurance goals:

a. Do you need an insurance company that can provide loss control services?

b. Do you need an insurance company that can provide claim-handling services for your Workers Compensation insurance?

c. Do you need an insurance company that will allow you to make payments by phone or on-line 24/7?

d. Do you need an insurance company that has a local agent/representative that can assist you in your insurance solutions?

Shopping and price are not the only issues in insurance. What you don’t know can cost you more in the long run than you could ever save in premiums. Discuss your situation with an insurance professional and make the choice that works for you.

Controlling Car In$urance

You may be frustrated with car insurance premiums and factors that may them creep upward, such as:

• Your insurance company's overall loss experience (due to more claims)
• The increased value of newer model cars, particularly SUVs
• Increases in judgment amounts awarded in auto lawsuits
• Increased business processing and administrative expenses
• Auto loans lasting longer, meaning increased auto repair costs for older cars

There are ways to address rising costs. First, gather your insurance records and any other car-related information. Next, determine if circumstances have changed since you last dealt with your coverage. Once this information is handy, call your agent and discuss relevant items such as:

• If you have your home and auto insurance with the same company, are you getting a discount?
• Does my coverage take full advantage of the discounts offered by my company?
• I have more than one car; am I getting a credit?
• Does it make sense to change my deductibles?
• Do my cars really need physical damage coverage insurance? (An important consideration for older vehicles)
• Do lifestyle choices such as drinking or smoking affect my premium?
• My son or daughter is on the honor roll, does this affect my premium?
• Did you know that my car has special security features?
• Did you know that my son took Driver's Education?
• Does the company have accurate information on how often and how far I drive?
• Am I with a standard carrier or do I qualify for any preferred program?
• Is my vehicle charged an additional premium because of its type or performance?
• Do I qualify for a loss-free history or policy longevity discount.

Giving your agent accurate information helps you get the best available premium. Provide your agent with complete details about your driving history. It’s important to clear about who drives your cars and how they’re used. Finally, use your agent as a resource for handling errors about your account or which may be shown in your driver records.

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