Getting a driver’s license is the highlight of one’s teen years, but many parents dread the thought of allowing their kids the freedom of a car. But this anxiety extends farther than just the matter of keeping teens out of harm’s way; it also means new expenses related to car insurance. This article discusses how to find cheap car insurance for young drivers.
A Basic Background
Historically speaking, young drivers are a higher risk for insurance companies. Although 25% of drivers on the road today are between the ages of 16-25, it is this age group that’s more likely to have an accident and file a claim. Cheap insurance for young drivers is hard to find because insurance companies base their rates on the amount of perceived risk. The higher the risk, the higher the premium can go for young drivers and their parents.
Know the Factors that Make Up the Costs
There are a few things that can be done to get cheap car insurance for young drivers. When looking for insurance, know that a few unchangeable factors will come into effect. The driver’s location, driving record and type of coverage will always be a part of the equation. Regardless of what the answers to those questions are, the first thing to do when looking for cheap car insurance for young drivers is to shop around. Every insurance company is different and can calculate rates differently. The first quote heard may not always be the cheapest or the best for the driver.
Rack up Discounts
When looking to find cheap car insurance for young drivers, ask for discounts. There are some discounts that are automatically given for good students. Some companies reward young drivers for achieving and maintaining certain grades. They may require proof but to reduce something that is so important to have, saving a report card or two is worth doing. If the driver has had continuous coverage for 30 days or more, call the company and ask if there is a discount.
The type of car that is being insured is also very important; the sportier the car, the higher the rates. When looking to insure a car for a young driver, the safer the car is considered, the lower the risk to an insurance company. If safety features are not already part of the car, consider installing them. Having air bags, automatic seatbelts and a theft deterrent can save young drivers money and give parents peace of mind. Also, if a teen has taken a driving class, they often get a 10% discount when they provide proof to the insurance company.
Hop on Mom and Dad’s Insurance
Parents should also consider allowing young drivers to be put on their insurance for a short period of time. After some time, the young driver can prove they are safe drivers and get cheaper car insurance for themselves. Also, if the car is not expensive, drivers and parents should identify unnecessary coverage, which contribute to overall costs. If the cost of the insurance is more than the car’s value, it’s probably reasonable to go without it. Talk to the insurance company to find out what is necessary for reasonable rates.
Conclusion
Finding cheap car insurance for young drivers is hard work, but it pays off in the end. Having great car insurance is responsible for young drivers and helps to relieve tension for parents. Imagining any young driver on the road without insurance is a nightmare for anyone but with a little work and a little knowledge, finding cheap car insurance for young drivers can be done.