Getting a driver’s license is very exciting but not very fun with car insurance. These high insurance quotes for new drivers can be very scary. Why is it so high?
Insurance companies tend to consider new drivers as risky. Do not frighten though! This article will give you ways in which you can get cheaper car insurance. It is possible for you to save money, and we are here to help you.
Why Is Car Insurance So Expensive for New Drivers?
Insurance is much dearer for the new driver. Insurers consider them as big risk. Here is why your rates can be pretty high.
Not Enough Driving Experience
New drivers lack sufficient time behind wheels. Insurance companies believe this can lead to accidents. Even though this wouldn’t be your fault, still, your insurance bill goes up. Experience usually denotes safer driving, that is what they think.
Statistics Show New Drivers Have More Accident Frequency
Numbers do not lie. New drivers have more accidents than older ones. According to CDC, drivers in the age group of 16-19 have nearly three times the chances to get involved in an accident as compared to older drivers. This is where insurance companies tend to get jittery.
Age as a Factor
Listen up, youth. Your age is one of the factors used to calculate how much you pay. Car insurance usually costs a lot for young adults. Insurers presume that newly turned adults will drive riskier. However, this figure should drop as you become an adult and drive safe.
Proven Tricks for Reducing Your Car Insurance Premiums
Well, all this can be negative. But what can you do to reduce those costs? Here are some helpful tips.
Choosing the Right Car
The type of car you drive makes a difference. Fast cars that are sporty will be high cost to insurance. Practical and safe would be most often cheaper. Check sedans or smaller SUVs as they usually pay lower premiums. Research your purchase carefully.
Raising Your Deductible
Think of a deductible as the amount you pay before insurance comes into play. The higher your deductible, the more likely your premium drops as well. For example, selecting a $1000 deductible instead of $500 can lower your premiums. Just be sure you can still handle that higher-deductible if something happens!
Take a Defensive Driving Course
The defensive driving courses teaches every person the techniques of driving safely. It can be very helpful for getting an insurance discount. Moreover, you would surely gain some skills out of it. Speak to your insurance agency if they approve the courses you research.
Discounts New Drivers Should Know About
Discounts will be your benefit. Check what discounts are available for new drivers, anything helps.
Good Student Discounts
Are You Good with Your Books? Insurance companies offer discounts on good grades. Show them your report card! An average of “B” or better can save you money. It shows responsibility, and insurers like that.
Multi-Policy Discounts
Do you have cars and other types of policies in your home? Maybe some home or renters’ insurance? These could be bundled with car insurance for discounts. It will not hurt to ask about a multi-policy discount.
The Safe Driver Discounts (for Future Savings)
This one takes time but yields rewards. Maintaining a good driving record, with no accidents or tickets, will eventually let you qualify for these discounts. The longer you drive without incidents, the more savings you reap.
How to Compare Car Insurance Quotes: The Step-by-Step Process
Purchasing car insurance is filled with confusion. So, here is how you do it right. Give yourself time and do not rush.
Researching Insurance Companies
No insurance company is alike. Some are better for inexperienced drivers. Find companies that have a positive reputation for fair rates backed by good customer service. Find online reviews and ask for referrals.
Understanding Different Coverage Options
Understand what you are buying. By law, you should have liability insurance in most jurisdictions. Collision protects the car from damage when you collide. Comprehensive covers problems like theft or damage due to weather. So, figure out what you need and what you can afford.
Comparison Tools Available Online
Comparison tools online offer the easiest way to compare quotes. Enter the information only once and receive quotes from many companies. Comparison tools such as The Zebra or NerdWallet may be helpful. Ensure to shop around.
Parental Help: It Pays Off
Parents can greatly help new drivers save money. Ask them for help and guidance – it may make a difference.
Adding a New Driver to an Existing Policy
Adding a new driver to the parental policy is usually cheaper than getting a standalone one. Talk to your parents about this option. It can save much money but might increase their rates a bit.
Co-signing on a Car Insurance Policy
A parent can co-sign your policy, meaning they share the responsibility for payments. This may help decrease your rate, though be sure you understand the dangers. If you fail to pay, it could put a blemish on their credit.
Conclusion
Finding cheap car insurance as a new driver takes effort. Yet it’s not impossible. Focus on the strategies such as finding a better car, raising your deductible, and collecting the discounts. Always be sure to shop around and compare quotes. Safe driving and a good insurance history will, in the long run, help you. Good luck, and drive safely!
