All insurance companies base their premiums on presumed risk, and there is no riskier category of individuals to insure than young drivers. The National Highway Safety Institute conducts studies of vehicular accidents and their incidence and has proven time after time that the majority of accidents involve drivers under the age of 25. As a result, insurers often charge higher rates in order to balance out the potential expenditures due to claims. The thought of teenagers getting behind the wheel of a car is enough to worry any parent and the typically high cost to insure them only worsens the matter. However, it is actually quite possible to obtain cheap insurance for young drivers if an individual takes the time to understand several best practices.
Most people believe that it is impossible to find cheap car insurance for younger drivers because it is a proven fact that they are less experienced. While it may be true that they are inexperienced, there are driver education programs that are often highly regarded by the insurance companies. In fact, a recent survey found that a 15% average discount was given to young drivers that had completed some type of formal training. In addition, many insurers also offer additional savings to individuals that have completed a defensive driving course. There are actually some defensive driver courses that can be attended entirely online and the added discount can be 10-15% as well.
Insurance companies typically see younger individuals as immature and irresponsible, but cheaper auto insurance for young drivers is often offered to students that are on the honor roll. A good student discount is often achieved by maintaining a GPA of 3.0 or higher and is interpreted by insurers to be indicative of responsible behavior and self-control. The savings can be as high as an additional 10-15% reduction in the premium and is often reevaluated every 6-12 months.
Young drivers looking for cheap car insurance for young drivers will often find that the type of vehicle they own plays a significant role in the calculation of premiums. Certain vehicles are considered to be a higher risk due to the likeliness of a rollover or because of the amount of damage that they could cause to another car. Coupes are often classified as sports cars by insurance companies and these also cost more to insure. While it may not be practical for a person to simply find another vehicle, parents with multiple cars may find it better to place their teenager as the primary driver on another one they own.
Most of the claims that arise from incidents involving young drivers are fairly minor and cost less than a thousand dollars to fix. Young drivers can obtain the cheapest car insurance for young drivers by selecting a higher deductible provided that they are able to afford to pay it in the event of a loss or accident. While seeking a higher deductible seldom saves an older driver a substantial amount of money, younger drivers will find that it greatly affects their premiums.
As with any other age group, the best way to retain young people car insurance is by maximizing all of the other possible discounts that may be available. Multiple vehicle discounts will usually save about 5% off the cost of insurance on all policies. Multi-line discounts are also available for consumers that use their insurance company for more than just their automotive needs. Homeowner’s insurance and renter’s insurance may be retained with the same company to obtain a 15% discount or more on all associated policies. Some discounts may be available to military families even if all of the drivers on the policy are not active or veterans. It never hurts to inquire as to all of the various types of savings offered and this is an excellent way to lower the cost of insurance.
An important question on most auto insurance applications deals with how many miles are driven and what the primary use of the vehicle is. Young drivers seeking cheap car insurance for young people should never select pleasure nor should they overestimate the number of miles that will be driven annually. Vehicles that are primarily used for pleasure indicate that the driver will be taking plenty of joy rides, and this makes the insurance companies nervous.
Shopping around is perhaps the best way to find cheap insurance for new drivers, but this can take an incredible amount of time if an insurance comparison website is not utilized. By filling out a short online form, consumers can receive quotes from multiple companies immediately and can compare policies based on the same qualifications without continuously retyping the same information.
Few things are as important and mandatory as car insurance for young drivers, but it still is not necessary to overpay for coverage. By familiarize oneself with all of the above common discounts an individual can ensure that they are receiving the best possible price.
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