The Cost of Insurance for Young Drivers: How to Save Money
Insurance premiums can be real a burden for young drivers. The cost seems outrageous and unfair. But, its important to understand that this added expense is actually necessary to protect both the driver and other motorists on the road. And, the good news is, there are ways to reduce the cost of insurance for young drivers.
Start by shopping around. Comparison shop different providers and choose the one that offers the best protection at the most affordable price. Some companies may offer discounts based on your age, driving record, or even for enrolling in school. In the same vein, take a defensive driving course. Most companies reward drivers for taking steps intended to reduce accidents and can offer a competitive discount.
Its also smart to consider the type of car to insure. Different cars have different associated risks and attract different rates. Choosing a vehicle that has required safety features such as airbags and anti-lock brakes may help lower your rates and reduce the cost of insurance for young drivers.
Another way to save money is to increase your deductible. The higher the deductible, the lower the premium. This is one of the best ways to get your premiums to shore, however, be sure you have the amount of the deductible on hand in case of an emergency.
Its also a good idea to consider having a co-signer. Having a co-signer with a good credit score could help to reduce premiums. Be careful who you choose, however, as a co-signer is legally responsible in the event of an accident.
Other ways to save money on insurance include bundling home and auto insurance, or looking for companies that offer multi-line policies ones that provide a discount when both automotive and homeowners insurance are purchased together.
Finally, some insurance companies offer rules that can help lower the cost. For example, some may offer discounted rates for students who keep their grades up or stay off their phones while driving. It never hurts to inquire about these possibilities!
Now that the basics of saving money on insurance have been discussed, it’s time to hone in on how to get even more aggressive with a strategy for keeping costs low. A good starting point is to explore ways to stay safe on the road, such as avoiding driving at night, obeying the speed limit and staying off the phone. Additionally, if you can avoid getting tickets, you can potentially save hundreds of dollars every year on your insurance premiums.
When choosing a vehicle, taking crash tests and reviews into account is also an important factor in lowering premiums. Different vehicles have been given safety ratings by the National Highway Traffic Safety Administration which can help you identify the car models that are safer to drive.
Young drivers may also want to consider having someone else as a named driver on their policy, such as a parent or experienced older sibling who has had no tickets or accidents. This could help lower the cost of insurance for young drivers significantly.
Additionally, many young drivers don’t realize that mileage can play a big role in rates. Keeping mileage low, by walking, biking, or using public transport wherever possible, is another way to reduce insurance premiums.
If you’re considering leasing or financing your vehicle, make sure to take the time to secure quotes and compare rates from multiple sources. Additionally, research to ensure you have a good understanding of the pros and cons of either option.
When you find a policy that works for you, make sure to stick with it. Insurance companies reward their loyal customers with loyalty discounts and other rewards. Staying with the same provider throughout your driving career could mean substantial savings over time.
The key to getting the best deal on your insurance is to be proactive and think outside of the box. Use the internet to research different tips for saving money on your insurance, such as asking about discounts for good drivers.
Finally, be sure to review your insurance at least once a year. Life circumstances change, and your insurance policy should reflect those changes. If you are overpaying for your policy, you could be losing out on valuable savings opportunities. Be sure to use price comparison tools and shop around to make sure your policy fits your needs with the most competitive rate.
