Basic Auto Insurance Tips for New Drivers

New drivers usually pay a higher-than-average premium for car insurance because they have not had enough time to prove they are good, responsible drivers. Most car insurance companies use several factors to determine premiums, and new drivers may not be eligible for many discounts and special offers.

Here are some essential auto insurance tips for new drivers:

1. Your premium will be higher than the average. Young drivers and new drivers are considered to be “risky drivers” by most insurance companies, so the insurance provider will hike up the premium rate. Be prepared to set aside a good portion of your paycheck for your insurance policy. The good news is, your premium will go down as you prove you are a good driver and maintain a good driving record.

2. You might qualify for a discount. New drivers that are under 25 years of age and are in good academic standing at high school or college may be eligible to receive a good student discount. Don’t be afraid to ask about different discounts and special offers available. Some car insurance providers will offer a discount to prevent you from going somewhere else.

3. You could lower your insurance premium by shopping around. Comparing rates from multiple car insurance companies may help you get a lower rate, even as a new driver. Don’t be afraid to get a quote from at least three or four car insurance providers so that you get the best deal. Let them know that you’re shopping around so that they work hard to earn your business.

4. The type of vehicle you drive affects your rate. If you are a new driver and are looking to purchase a car, make sure you understand the difference in insurance rates based on the model and make of your vehicle. Almost all car insurance providers take the type of car you drive into account when calculating your premium. Driving a car with a high safety rating could mean a lower price on car insurance. Sporty cars are considered to be risky in the eyes of the insurance company, so your premium will be higher. Keep this in mind when shopping for a new vehicle.

5. Be specific about how much you will use your vehicle. Some insurance companies will lower your premium if you indicate and prove that you are only going to be driving a short distance to work or school, or if you are driving a certain number of miles per month. Be as specific and honest as possible about how much you will be driving so that you can get the best rates.

Sources:
http://www.onlineautoinsurance.com/teenagers/cheapest-car-insurance-young-drivers.htm
http://www.driversedguru.com/product-reviews/insurance-for-new-drivers/

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