10 Things You Should Know About Insurance for Young Drivers
Insurance for young drivers can present a daunting obstacle to tackle when you’re getting your first car. With quotes sometimes in the thousands of dollars for a single year and the extra risks for young drivers, having the right know-how is absolutely essential. Here are ten things that every young driver should know about insurance:
1. Shop around for your insurance. Every insurance company will quote you differently, and some may have better deals for young drivers. Don’t just accept the first quote you come across without doing some research.
2. Try to drive safely – this can really make a difference when it comes to insurance. If you can prove you’re not a big risk, many companies will reward that through discounts.
3. Consider increasing your deductible – if you opt to pay a bigger portion of the costs yourself, your premiums may be lower. It’s wise to speak to a financial advisor about this first as sometimes it doesn’t make sense for young drivers.
4. Get your parents involved. Some companies offer discounts for young drivers if the parents are already insured with the same company.
5. Try a low-mileage policy – depending on your needs and budget, you can take out insurance for fewer miles driven. Many young drivers are able to cancel or lower rates by opting for a lower yearly mileage.
6. Be loyal – many companies offer loyalty discounts for those who have been with the insurer for a long period of time.
7. Try getting public transport instead of using your car – in some cases, this can be more affordable and often safer on the roads.
8. Install a telematics device in your car. These devices track your driving and can analyze how well you drive. Over time, these can get you a much-needed insurance discount.
9. Look into more than just comprehensive insurance. Always consider all the optional extras and add-ons when it comes to insurance to make sure you get the best deal.
10. Invest in a good car. Believe it or not, some vehicles can be cheaper to insure than others. Buying a more expensive car can sometimes be a spot of false economy, so always consider this before you buy.
Next, there are additional factors that are important to consider when getting insurance for young drivers. First, look at the types of coverage that are available to you. Typically, full-coverage auto insurance is the most expensive, but it provides greater financial protection. It includes a variety of coverages such as liability, uninsured motorist, comprehensive, collision, and medical payments coverage. Before you make a purchase, make sure to thoroughly read the details of the policy to gain a better understanding of what level of coverage you’re getting. Another factor to consider is additional riders. These are optional extras which can be added to your policy to extend your coverage. Examples of these include emergency roadside service, rental-car reimbursement, gap coverage, and mechanical breakdown. Lastly, it’s important to remember that the cheapest option isn’t always the best. Be sure to compare the price of the policy with its coverage and benefits, so you can make an informed decision.
Another area to focus on when researching insurance for young drivers is finding ways to lower the cost of your premiums. One way to do this is to look at discounts and rebates. Each insurer has its own set of discounts, so the best way to find out what discounts you may be eligible for is to call your insurance company. Some insurers offer discounts for students who have good grades, low mileage, drivers who take a defensive driving course, and young drivers who have a clean driving record and are over the age of 25.
Lastly consider ways to reduce the risk of your insurance. This can include driving less often, avoiding driving at night, and having a car fitted with modern safety features. The car you choose to insure can also make a difference, as some vehicles may be considered higher risk than others. Researching the safety ratings of the car you want to buy can also be extremely valuable when choosing which one you’d like to insure.
Along with researching insurance, it’s equally important to choose a car that is suitable for a young driver. Factors to consider when purchasing include the price, size, safety rating, fuel economy, and cost of maintenance. Since young drivers often times lack experience, researching the cars with the best safety ratings and lower repair costs is advisable. It’s also important to make sure that the car is within your budget as car payments can become expensive. Lastly, think about the benefits the car could provide pertaining to your lifestyle. Before you purchase consider how much space it has, how much it will cost to fuel, can it transport friends?
When it comes to insuring a new car, it’s important to do your research. Many insurers offer discounts based on your driving record, credit history, and other factors. Taking the time to do your research and shop around for the best insurance policy can pay off in the long run. It’s also important to remember that no two insurance policies are the same and finding the right one for you is a process that takes time and patience.
