Automobile insurance is necessary for all licensed drivers in the U.S. When it comes to insuring new drivers that are fairly young, costs can be considerably higher than most people expect. There is a clear association with age and price of insurance premiums. Fortunately, you can equip yourself with some knowledge about how auto insurance rates are calculated and what you can do to get insurance as a new driver. If you are completely confused about car insurance and are a new driver, don’t stress, just keep reading some of the tips provided here.
Buying car insurance for new drivers can be expensive
Regardless of where you look for insurance coverage for new drivers, the fact is that the policy you buy will probably be somewhat pricey. The reason for the policy being more costly has to do with the fact that a new driver does not have adequate time and experience behind the wheel. Research and studies have shown that younger drivers are naturally more dangerous, more easily distracted, riskier, and will be involved in motor vehicle accidents more than an older seasoned driver. This translates into higher car insurance rates.
The first step for new drivers should involve understanding their policy
Before getting a particular policy, you will want to know and understand all aspects of the policy that you are considering for purchase. Important areas to discuss include: what discounts are available, how will the cost of the policy change over time for a good driver, and what the payment plans are like in regards to timing and flexibility. Knowing as much as you can about your auto insurance policy in advance will help prevent any surprises down the road that may upset or confuse you as a policyholder.
Enroll in additional drivers education courses
One thing that can possibly reduce your insurance costs as a new driver is taking additional driver’s education classes. Depending on the area, these are generally offered through a number of different providers such as the insurance companies themselves, local colleges and high schools, and sometimes through a local car care center. These courses will generally be short in nature and over the period of a few days in most cases. Before signing up for one of these courses, it should be known if the particular insurance company will honor the driving course. They may have a limited number of accepted and recognized courses that they will consider when it comes to giving discounts on the policy.
Students: Keep your grade point average up to maximize your savings
In addition to education courses, drivers who are in school can get discounts if they maintain decent grades. Some companies will offer savings of up to 20% when a driver maintains a 3.0 GPA. Having this discount not only saves money, but is a good motivational tool for the parents to use. As a parent, you may want to motivate your son or daughter by saying that if they, as new drivers, can keep up their grades, then they can keep their car and the driving privileges.
Type of vehicle you drive affects insurance costs
The type of vehicle purchased for the driver can greatly affect the insurance premium. The car that the new driver wants will often be one that is more costly to insure such as a fast sports car (read about sports car insurance for young drivers). Getting a used vehicle as a new driver is generally a smart move, especially if it is a model that is proven to have a good safety rating. Used car insurance is typically are associated with significantly lower premiums than policies insuring flashy sports cars, especially for younger drivers.
Are you driving one of the family cars?
If there are multiple cars in the household, the new driver will need to be registered to one of the specific cars. This simply states that he or she will mainly drive that vehicle. If they are on the policy, they will be able to drive any of the vehicles in the family. With this, it is important to get them on the vehicle that is the safest and is the least expensive. The insurance will more than likely place them on the more expensive vehicle in an attempt to gain more revenue.
Bundling auto insurance with other types of insurance
The insurance for the driver will generally be less expensive if it is purchased through the same company that provides other types of insurance coverage. Having various policies such as homeowners and life insurance all through the same provider can yield some significant savings. Most companies will offer multi-driver discounts as well as multi-line discounts (for more information read about: joint car insurance as well as multi car insurance). Not all companies will provide this, but it is a common practice. It is just a matter of finding out how much a discount can be obtained by getting all policies through the same provider.
Know how much coverage you need
Depending on the location of family, there are different guidelines as to what is accepted or minimum driver coverage. Different drivers within the family can certainly have different types of coverage. To save money, a policy with the lowest allowable coverage can be bought for the new driver. You can get a free car insurance estimate online here simply by entering your Zip Code at the top of the page.
Care should be taken though so that you don’t reduce the amount of liability too much just to save money. If it is taken down too low, there could be problems in the future if the driver is involved in an accident where they are found to be at fault. Regardless of the company and the specific policy that is purchased, the main thing to keep in mind is that the new driver be safe and adequately covered. The premiums will decrease over time once the driver is older and gains experience.