Young drivers will find shopping for car insurance a challenge. Before you grab the keys and go, there a some things you need to think about.
Auto insurance companies consider young drivers to be high risk. This means you will pay the highest rates. Statistics show that younger drivers have the most accidents. They generally consider a young driver to be anyone under the age of 25. Why will they charge more for young drivers? Because you don’t have enough experience on the road. Drivers with less than three years of driving experience will not qualify for most discounts.
The outlook may look grim, but there are a few things that may work to your advantage. Premium reductions are available. You will need to qualify in order to get these reductions.
Factors that will effect insurance rates:
- Location- City drivers will pay a higher premium that people who live in smaller towns. The greater the traffic flow the greater the risk for accidents.
- Driving record- If you are lucky enough to have a record at all, a good one will save you money. A lack of a driving record is the main reason young drivers pay such high premiums.
- Gender- Sorry guys you will have to pay more. Statistics show that males have more accidents than females. Not all guys think the road is a racetrack. Unfortunately, insurance companies go by the numbers.
- Type of vehicle- That bright red sportscar looks great on the showroom floor. You would be smart to leave it there. The more expensive the vehicle the higher the insurance rate. Add this to the cost of being a young driver and your rates will hit the roof.
- Coverage- How much coverage do you need? This depends on the type of vehicle and how old it is. A less expensive or older model will cost less to insure. If your vehicle is financed your lender may require you to carry full coverage. If you own the car you may get by with liability only.
There are other factors to consider when purchasing insurance.
- How far do I travel to work or school? The shorter your commute the less you will need to pay.
- How are my grades? If you hold at least a B average, you will pay a lower rate.
- Will it help to take a safe or defensive driving class? It may. Check with the insurance companies while you shop. Ask them if they offer the class or if they allow a discount for completeing the course.
- Should I add myself to my parents’ policy? This is a tough one. If there are multiple vehicles adding a young driver may increase premiums for all vehicles. Ask the insurance carrier if you can be assigned to the least expensive vehicle. Some insurance companies will accommodate you. Many parents prefer to add their young driver to their existing policy.
The best way to find auto insurance is to check with as many companies as possible. They will most likely ask you a series of questions such as make, model, and year of vehicle. They will want to know the age of the driver and their driving record. They will ask for a drivers license number. If you are to be added to your parents’ policy they may request information from them as well.
Remember to ask for any possible discounts. If you have at least a B average tell them. If you successfully completed a drivers education class let them know that too. Don’t let them talk you into anything you don’t need. It is a good idea to have someone there with you who has some experience in insurance shopping. Listen carefully to what they are trying to sell you. Don’t be afraid to say no if it doesn’t sound like a fair deal.
Now let’s talk average price also know as sticker shock. Young drivers can expect to pay anywhere from $1200.00-$4,900 per year. If you are added to your parents’ policy their premium is likely to double. It seems like a lot because it is. Paying for insurance isn’t easy. You will need to have a plan. If you have a job make sure to set money aside to make your payments. If you collect an allowance the same is true. If mom and dad are paying the bill, be sure to thank them. Oh, and crank out those extra chores.
Tags: auto insurance companies, car insurance, full coverage, insurance rate, insurance rates, young drivers
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