New Study Shows Adding Teen Drivers Can Double a Familys Car Insurance Premiums

New Study Shows Adding Teen Drivers Can Double a Family’s Car Insurance Premiums

Bad news for the parents of teenagers: A new study conducted by InsuranceQuotes.com, which was released on Monday, found that the monthly premium a married couple pays for car insurance can jump by as much as 80 percent once a teen driver is added to the policy.

The good news, however, is that there is some relief in sight for the families of young drivers who meet certain criteria.

“I’ve seen discounts as high as 25 percent for students who maintain at least a B average in high school or college,” Laura Adams, senior analyst for InsuranceQuotes.com said in a statement. “Students and their parents need to proactively request this discount.”

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Red Car Auto Insurance Myth Debunked

Red Car Auto Insurance Myth Debunked

There’s probably a pretty good chance you’ve heard the myth that red cars cost more to insure than vehicles of any other color.

“For years there has been a notion that color plays a significant part in calculating insurance premium costs, many people believing that red cars cost more to insure because they are linked to aggressive driving or speeding,” a rep for Insurance Information Institute told NerdWallet.com.

As it turns out, however, that rumor is completely false.

Instead, insurance rates are based solely on the make, model and year of your car, as well as its engine size, body type and safety features.

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Allstate Now Offering Auto Insurance for Uber Drivers

Allstate Now Offering Auto Insurance for Uber Drivers (Demo)

Allstate announced on Wednesday that it will now be offering auto insurance plans for drivers who pick up passengers via apps like Uber and Lyft.

According to Chicago Business, the brand new Ride for Hire policy will come with a price tag of about $15 to $20 per month and will “provide coverage for drivers who get into accidents while they are on the way to pick up new fares.”

To start, the policy will only be available in Illinois, Colorado, Texas and Virginia, though Allstate hopes to expand into more states in 2016.

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Experts Suggest Driverless Cars Could Slash Auto Insurance Rates

Experts Suggest Driverless Cars Could Slash Auto Insurance Rates

As driverless cars continue to become more and more of a reality, experts suggest that we could eventually see auto insurance rates begin to drop.

A recent study by RAND Corp. found that the increased safety benefits from self-driving cars – which promise to come with a reduced risk of accidents – are likely to lead to “a significant reduction in insurance premiums” down the road.

“So many accidents are caused by human error, if you reduce the human factor, it should cut down on accidents,” analyst Laura Adams of Insurancequotes.com told CBS News. “That will mean fewer claims and should reduce rates.”

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New-Federal-Rules-Make-It-Tougher-to-Get-a-Reverse-Mortgage

New Federal Rules Make It Tougher to Get a Reverse Mortgage

Thanks to a set of new federal rules doled out earlier this week, it has now become a bit more difficult to obtain a reverse mortgage on your home. The good news, however, is that for those who do get them, they will have a lot less to worry about.

According to the new regulations, potential borrowers will be subject to a “financial assessment” to review the income, cash flow and credit reports of prospects.

“I think these changes are positive overall,” Phil Stevenson, a certified reverse mortgage professional and principal of PS Financial Services in Coral Gables, Fla., told Forbes. “They’ll affect five to 10% of potential borrowers and, in reality, those are the ones who probably shouldn’t have done reverse mortgages in the past.”

Image via flickr/American Advisors Group

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Report-Financial-Sector-‘Rooting’-for-Mortgage-Rate-Hikes

Report: Financial Sector ‘Rooting’ for Mortgage Rate Hikes

As mortgage interest rates continue to remain at historic lows, potential homebuyers are loving it and the financial sector is hating it.

“There’s virtually nothing in the financial services area that’s benefiting from continued lower and lower rates,” Barclays CEO Bob Diamond said at the Milken Conference in Los Angeles on Monday. “[We are] rooting for higher rates.”

Moreover, depending which side of the coin you’re on, you’ll either be pleased or disappointed to hear that experts do not believe a move to higher interest rates will happen “quickly.”

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