Car Insurance for Young Drivers

The first few years of driving are undeniably challenging. Aside from the nerve-racking driving test that you need to pass, you will also need to deal with soaring-high car insurance for young drivers. It is a common fact that amateur motorists suffer from high car insurance premiums. Car insurance companies justify this standard guideline based on facts that pertains young drivers on the road.

This is an obvious reason of why car insurance for young drivers is significantly higher than that of motorists who have been operating vehicle on the road for more than five years. A driver with three to five years of driving without claims or any traffic-related violations will start seeing a reduction in the amount of their insurance premiums. Since drivers in this age group havent built a no claims record yet, they will have to bear the burden of higher premiums for three years, five years, or more.

Furthermore, statistics show that young drivers are more likely to be involved in an accident compared to drivers who are 25 years or older. A great number of major collisions involve one driver that is 20 years old and below.

How to lower down insurance premiums for young drivers?

It is important for young drivers to understand that statistics and lack of experience in driving are not the only factors which contribute to their high car insurance premium payments. Bear in mind that upon application for a car insurance policy, insurance providers also look at the following elements:

•    The amount of coverage that you want
The minimum insurance liability differ from state to state, thus it is important to remember that you will need to check with the DMV with regards to the amount of coverage you are mandated to purchase. Insurance experts suggest that it is best to get more than minimum liability. Assess your personal situation and add on more coverage accordingly.

•    Risk assessment of you by the car insurance provider
Insurance providers are mandated to follow certain risk assessment guidelines when calculating premiums. They are also allowed to add in some terms of their own when insuring potential policy holders. There are companies which do not include one’s inexperience or basic driving skills in calculating car insurance premiums for young drivers, while there are other insurers that consider inexperience as a major determinant of the car insurance premium payments that will need to be made.

Tips on how to lower car insurance premium

•    Choose a car that is affordable to insure
Youngster under 25 is ideally recommended to pick a car that is only cheap to insure. This is perfect for youngsters who will be primary responsible for paying their own car insurance policy. You may be looking at buying a new sports car as your first vehicle, but if you can, just try to hold it off for a years.

•    Do not modify your car
According to statistics young motorists with modified vehicles is the worst combination when purchasing car insurance. If you are trying to get inexpensive insurance, plans of modifying your vehicle is strongly discouraged to keep insurance premiums still affordable. There are drivers that do not report the modifications to insurers, and end up with a voided car insurance policy when they encounter an accident and report the incident afterwards.

•    Take defensive driving courses
If your goal is to successfully reduce the insurance premium, make sure to spend time on taking defensive driving courses. You may choose to take this course before applying for an insurance or during your first few months of driving. Defensive driving courses not only reduce your premium but also improve your driving skill on the long haul.

•    Excel in school
A large majority of car insurance providers give out discounts for a job well done in school. This is one measure that insurance companies realize the fact that premiums for younger clients are expensive and their own way of helping out to reduce the premium rates as well. Youngsters should ideally have a GPA of 3.0 or higher. Teenagers who have always excelled in their studies will enjoy a reduced premium even on the onset of their car insurance policy.

•    Invest in security devices
Gadgets or equipment that increases the safety levels of a vehicle is also an effective means of reducing the car insurance among younger drivers. Instead of swapping your engine with a powerful one, it is more encouraged to switch to spending money on security devices instead. Aside from reduced premiums, you will find yourself more at ease and comfortable when you have such devices installed n your car.

•    “Black box installation”
Black boxes are generally devices installed onto a vehicle and functions primarily to monitor the habits and activities of drivers.  Insurance companies will be able to keep track or assess the risks of drivers by looking at the results recorded by their respective black box. Therefore it is necessary for parents to install one on their children’s vehicles as it not only deliver lower insurance premiums, but also bring them peace of mind.

•    Consider paying higher deductibles
The amount of deductibles that you are willing to pay in case of an accident surely has a direct link to the costs of claims of your insurance company. For instance, if you set the deductibles at $200 and claims for repairs at $1500, the insurer will only cover $1300 and the $200 is the amount that you pay out of pocket. The higher the deductible, the lower car insurance premium rates as well.