Car Insurance for First Time Drivers

Your teen can’t wait to drive and maybe after years of schlepping them here and fro you can’t wait either; until you get the quote for their car insurance. Wow!  Car insurance for first time drivers sure can be pricey – and for good reason.  Drivers between the ages of 16-19 have a three times higher chance of getting into an accident than their 20-25 year old counterparts. In addition, if your teen is a male, count on paying 20-50% more than you would for a daughter. Why? Because statistics show that young male drivers have an even worse track record on the road.  Couple these statistics with the grim facts regarding teen death rates behind the wheel and it is no wonder that car insurance companies must take a proactive stance in regards to first time driver rates.

In a quest to save thousands of dollars in claim costs, insurance carriers tend to err on the side of caution and charge exorbitant rates to their first time drivers.  That may leave parents wondering if there are any ways to cut costs and still keep their young drivers (and their vehicles) safe from harm. The answer is yes.  There are strategies you can employ to keep your rates down somewhat; but don’t expect any big savings for a few years. By then your young driver will be able to establish a track record with your insurer and possibly get their rates cut – if of course, they have managed to stay accident free during that time.

In the meantime, here are a few simple things you can do to help cut car insurance for first time drivers:

• Get your young driver professional driving instruction.  Whether they take a certified driver’s education course at their high school or you shell out hundreds for private driving lessons doesn’t really matter.  What will make a difference in the eyes of your insurance carrier is that they have taken the time to learn the proper safety measures with some sort of driver’s education and safety instruction.

• Buy a cheap clunker for your teen to drive.  This can save you in high insurance costs in several ways:

1. Older vehicles cost less to fix when damaged and therefore cost less to insure
2. Depending on the condition of your old clunker, you may not need as much coverage (especially when it comes to collision) as you would a newer model
3. Sportier vehicles and SUV’s tend to inspire less safe driving among first time drivers, thus causing more accidents

• Insist on good grades.  Not only do better students drive more safely, but they tend to be more responsible behind the wheel and most insurance carriers now acknowledge that with good student / good driving discounts.

• Prohibit talking and texting when behind the wheel.  Did you know that a teen driver distracted with a cell phone drives about the same as an adult who is drunk? It’s true. Talking and texting while driving slows down a teen’s response and can cause serious injury and accidents.

• Limit your teen’s driving (at first).  Sure, your young driver needs practice to become a better driver, but give them time to ease into this new responsibility.  Limit your teen’s solo driving time can help you keep a better eye on poor driving habits; plus you may get a discount from your insurance carrier if they are considered an occasional driver clocking less than 7,000 driving miles per year.

• Increase your deductible. Sure, it will cost you a few hundred dollars more if your teen is in an accident; but compared to the hundreds you will shell out each year on insurance costs, you could save a small fortune – especially if your teen turns out to be a super-safe driver.

• Don’t file a lot of claims. Some people just love to file every little claim they can to get check from their insurance company. This is a bad idea when it comes to also insurance for first time drivers.  If they dent the bumper or scratch the floor, who cares?  Leave it be or pay to fix it yourself and keep the insurance company out of it. The more claims you file, the higher your rates will become.

Car insurance for first time drivers sure can cost a fortune. For most parents, it is important to find as many ways as possible to lower those rates in order to even allow their teen behind the wheel before college.  To find exactly what types of young driver discounts your teen is eligible for, be sure to talk with your insurance agent. They are the best source of discount information, regardless of the driver’s age.

Buy Car Insurance Cheap

In today’s tough economy, consumers are looking for value anywhere they can find it, and their car insurance is no exception.  Since car insurance premiums are not a fixed price, it is one of those costs that can be tweaked to best meet your needs and budget. But how do you go about buying car insurance cheap? 

First, you have to understand how car insurance works.  You choose your coverage (or pick a prepackaged plan), and then tweak the price with a good driving record and appropriate discounts. Just because your agent says that your premium will cost a certain amount does not mean that is what you will ultimately pay. Buy car insurance cheap by using some of these tried and true cost cutting strategies:

Drive the cheapest car you can

You might dream of hitting the street in a flashy sports car or loaded SUV, but if cheap insurance is what you are after, you’d be smart to buy a cheap sedan to get to and from work.  Less expensive (and by that I mean cheap) vehicles cost far less to insure; as do older models. The best way to keep your premiums low id to drive the cheapest and oldest car you can find that can still get you where you need to go.

Increase your deductible

Sure, a small deductible will save you cash if you need to file a claim, but you will pay for that luxury in higher premiums now.  Instead, put some money in the bank to cover that deductible and save as much as 10% on your overall premium.

Buy only the coverage you absolutely need

Take a good look at your insurance policy.  Do you really need all of that coverage? The odds are that you don’t.  For instance, if you have a second car (or one that you could borrow in an emergency), ditch the rental coverage on your policy.  It can cost a hundred dollars or more a year and the odds are good you will never use it. Consider this: if you spend $75 a year for 10 years on rental coverage, you could rent a quality car for more than a month in most regions of the country –depending on the car you rent you may even be able to get one for ala longer period of time.  Now, think about how long you will likely need a rental if you are in an accident (maybe 2 weeks)?  That is a lot of wasted premium money.

Live in the safest area you can afford or even consider a move to the suburbs

The safer the neighborhood you keep your car, the less expensive your insurance will be. Better yet, move to the suburbs and watch your insurance premiums plummet.

Drive less

The less you drive the less chance you have of getting in an accident.  That is why driving less can save you money on your car insurance premiums.  If you can prove that you drive less than 10,000 miles per year, you can enjoy a discount.  The next time you have your car inspected, have your mechanic certify the mileage and then submit that report to your insurance agent for review.

Get married

Married couples traditionally spend less on car insurance than singles.  One reason may be the multi-driver discount they enjoy.

Shop around

The absolute best way to buy cheap car insurance is to shop around. Not every carrier offers the same plans or fees.  Be sure to check with a variety of companies and brokers for the best deal.  Use the insurance comparison charts on the internet to helps find cheap insurance in the area in which you live. But, be careful not to cut rate yourself to the point of buying insurance that will not give you the protective coverage that you need. It is fine to look for a discount plan, just as long as the policy you pay for will indeed cover your costs in the event of an accident.

When it comes to finding a way to buy cheap car insurance, it is always best to look for a reputable company and then ask about the variety of discounts that they may offer.   In addition to the cost savings methods listed above, you can also see if your insurance carrier offers these common discounts:

• Multi-Vehicle discount for drivers with more than one vehicle

• Safe Driver discount offered to drivers who remain accident free for a certain period of time

• Multi-driver discount offered to households with more than one river

• Theft protection discount offered to vehicles  sporting any one of several anti -theft devices