November 16, 2010

Choosing Between Individual And Multiple Driver Policies

If you're shopping for auto insurance policies and special discounts for multiple drivers, understanding how car insurance companies assess risk can help you find the best rates for individual or multiple-driver policies. Before purchasing auto insurance online, shop around for quotes from a variety of providers to find the best premiums based on your unique insurance needs. In general, purchasing a policy for multiple drivers or multiple vehicles is one of the easiest ways to qualify for customer loyal discounts for using the same provider for all of your car insurance needs.

Multiple driver policies are typically underwritten for primary and secondary drivers based on actual operating time or mileage. Falsely declaring the primary driver as a secondary operator is illegal, which gives insurers the right to drop coverage or deny claims in the event of an accident. Some insurers determine rates based on the driving history and risk associated with the primary insured while other underwriters charge rates based on the driver who has the highest level of risk. Adding a teen driver or inexperienced operator as a secondary driver could increase your premium overall due to the greater risk of an accident occurring. Young drivers are only one category of high-risk drivers that affect auto insurance premiums. Operators with medical conditions that affect driving ability, elderly drivers and drivers with a history of traffic violations or multiple accidents within one year are also assessed as high-risk.

Depending on the provider's underwriting procedure, your household could save cash overall by insuring high-risk drivers with an individual policy. Safe drivers with a clean record can keep low rates and special discounts by insuring high-risk drivers separately. Whether you're adding a teen driver to your policy or any operator assessed as high-risk driver, you may still qualify for special discounts on medical coverage and other policy benefits. Drivers under 25 who attend high school or college can also qualify for good student discounts of 10% or more by maintaining a B-average or better. Although seniors and drivers over 70 are often assessed as high-risk, there are a number of opportunities for seniors and retirees to qualify for special discounts and benefits, such as automatic renewal.

Because underwriting procedures vary greatly, it pays to shop around and compare quotes for individual and multiple-driver policies. Personal factors, such as a poor credit score also affect annual premiums, so it's important to verify the accuracy of your credit score before purchasing auto insurance online. Whether you're a high-risk operator with a poor credit score or an experienced driver with a clean driving record, you may qualify for discounts on auto insurance policies for individual and multiple drivers.