Insurance World

Insurance is very, very expensive for a certain group of drivers. Unfortunately, statistics prove that newly qualified young men are a particularly poor insurance risk. A risk that rises significantly between the hours of 11pm and 6am.

Naturally all parents want to help their children to gain a degree of independence and the vast majority of 17 year olds are keen to learn to drive. Several years of running their offspring around and keeping their social diaries, as well as your own, may now be coming to an end and many parents take the decision to help with the insurance costs. The parents of girls come out a little better off, financially, but for those with sons – read on.

It seems that young males are an amazing 62 times more likely have convictions for dangerous driving than young women. Out of over 7000 convictions for dangerous driving or causing death or bodily harm, 33% were attributable to young men aged between 17 and 20.

The worst time for these offences and for accidents is during the night-time. Between 11pm and 6am, the chances of young male drivers being involved in an accident which causes serious injury or death increases ten-fold. Having had their driving lessons during the day time, night-time driving is new these youngsters. The quiet, open roads tempt them into driving far too fast and losing control of the car. Often the presence of passengers in the car add to the pressure to show their driving prowess and a high proportion of these accidents are single vehicle ones, where no other driver is involved. They are simply down to lack of experience.

The insurers MoreThan are getting the message out to parents regarding these facts and will cross-sell their new DriveTime policy to parents who contact their call-centre staff. By persuading youngsters to leave the car at home during the most accident-likely hours, they aim to cut both the costs of insurance and the risk of horrendous accidents. MoreThan aims to reduce the premiums of drivers aged 18 to 25 by 40% in return for an agreement not to drive in the critical hours. The basic cost of insurance will be priced in the usual way, based on age, experience, type of vehicle, etc., around 60% of this “normal” charge will form the basis of the insurance quote. Often this will be paid for by parents. What then happens is that, if the car is used between 11pm and 6am, there will be a charge of Ј25 per journey, paid for via a direct debit.

In order to implement these charges, a black box will be fitted to the car. This is at the insurer’s expense. The black box is small, non obtrusive and very clever. Using GPS (global satellite system) technology it can track drivers’ movements 24 hours a day.

Norwich Union is another insurer using technology to offer more reasonably priced insurance. Again a black box is fitted and by supplying the information this system can gather into a central database over a secure mobile network, a driver can be assessed on his or her driving using a range of facts. In time it is thought that this method will benefit less frequent and cautious drivers.

This, then, may point a way to the future as far as insurance is concerned. For more help and advice, go online, seek out an experienced broker and see what the future offers.

Term life insurance has many advantages. But understanding term life insurance and its benefits means sifting through the myths surrounding it; and there are many myths about life insurance. These life insurance myths and misconceptions can result in too little coverage causing financial hardship for families suffering the loss of a loved one.

To avoid this from happening to you, we’ve taken a look at the most common misconceptions about life insurance to set the record straight–helping you to make the right life insurance choice for you and your family.

Myth #1: I don’t work outside the home so I don’t need life insurance.

False! Just because there’s no paycheck to replace, doesn’t mean life insurance is unnecessary. A life insurance policy that provides coverage for a stay-at-home parent isn’t so much about the money they bring in to the household, but instead about the money they keep in the household.

In fact, have you ever considered how much it would cost to pay for childcare and housekeeping in the absence of a stay-at-home parent? Don’t underestimate how much this would require, child care is expensive and is a growing cost.

Myth #2: I’m young so odds are I won’t need life insurance.

Some people are gamblers by nature and choose to take their chances by skipping out on life insurance completely. Although it is unlikely you’ll die during your working years, you’re not insuring for what’s likely to happen but instead, for the worst-case scenario.

That’s why term life insurance is inexpensive for young, healthy people. Buying life insurance now means you’ll be providing financial security without spending a lot of money for it.

For example, online quotes show that a $250,000 10-year term policy for:

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a healthy 35-year old woman costs as little as $165 a year
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a healthy 35-year old man costs as little as $195 a year

What’s more you may even be eligible for preferred life rates that mean the annual premiums are even less! Preferred rates are lower premiums - for the same coverage - offered by an insurer based on your health. The good news is that eligibility for preferred rates is common and could save you up to 30 per cent off the standard rate.

Myth #3: If it’s really so cheap there must be a catch.

There’s no catch to term life insurance. Your basic term life insurance policy will offer you coverage so long as you pay your premium. You buy term insurance coverage for the duration of time you’ll need life insurance, whether that’s until the kids are out of school or until your mortgage is paid off.

Plus, your premiums are fixed for the length of the term. They won’t increase even if the status of your health changes.

Myth #4: I don’t need life insurance once my children are self-supporting and my mortgage is paid off.

Everybody’s insurance needs vary. But how would your spouse manage daily living expenses without your help? And what if your spouse outlived you by 10, even 20 years?

Even if your children are no longer living at home and you no longer have large debts, like a mortgage, there still are questions you should consider before deciding that life insurance is unneeded.

Myth #5: I have life insurance through my job. I don’t need any more insurance coverage.

False. The truth is your life insurance coverage through your work may not be protecting yourself and your loved ones as much as you think. Review how much your employer-paid insurance provides and calculate whether this is enough to keep your family comfortable through the difficult times if you’re not around.

What’s more, when you leave your job for any reason, including retirement, your coverage usually stops.

Myth #6: It’s such a hassle to get life insurance.

Thanks to the Internet, getting quotes is fast and easy. There are a number of online life insurance quote services and usually, all you have to do is answer a few simple questions to get quotes. Sometimes, you can even buy a policy online.

Final Fact:

From the time you marry, buy your first home, start a family and enjoy retirement, having life insurance means you and your family have the security knowing you can reach the long-term financial goals you have set out.

Life insurance policies provide you with customized coverage for your family’s needs. Comparing quotes on the Internet can help you find affordable life insurance that will protect you and your family in the years to come.