It's a fact that young drivers tend to have a hard time
acquiring affordable insurance premiums. One of the biggest obstacles for young
drivers is that they usually don't have enough time behind the wheel to prove
to insurance companies that they are reliable, safe drivers. Insurance
companies see young drivers as potentially high risk and as a result, may
purposely ward them off with higher premiums, or offer better premiums to young
drivers with better grades or a more stable income. These hurdles can be
overcome, however. So listen up, young drivers of the world. Here are the steps
to finding good, cheap insurance.
Understand whatinsurance companies can offer you. Car insurance coverage isn't one type fits all. Companies
can offer you a variety of different levels of coverage. Generally speaking,
car insurance can be broken down into three categories: liability, vehicle, and
medical.
- Liability coverage. Your liability premium is the part of your insurance that covers the damage your vehicle may do to another vehicle in an accident, and is legally required in most states. It also covers medical care and lost wages for other drivers and passengers if you are found at fault in an accident. The size of your vehicle is a major factor in determining your liability premium. An SUV will likely do more damage to another vehicle on the road so the liability premium for this larger make and model will often be higher than a smaller make and model.
- Vehicle coverage. This coverage is broken down into two types: comprehensive coverage and collision coverage. Vehicle coverage is not state mandated, and will vary among insurers. It's a good idea to make sure your insurance plan includes vehicle coverage.
- Medical coverage. This premium is designed to cover any medical expenses for you, your passengers, and other drivers in the event of an accident. Medical coverage varies from company to company. It is a good idea to include this type of coverage in your insurance policy.
Consider the pros and
the cons of the vehicle you already own or are interested in purchasing. The make and model of your vehicle
will have a big impact on your insurance. Beyond your driving record (which is
limited), your zip code, and the demographic of the drivers in your household,
the type of car you drive is a major factor to getting a good price on
insurance.
- Get a free quote based on the registration number of the vehicle you own or are interested in buying. Most major insurance companies have online rate generators at no extra charge. You can also complete self-quotes online via websites such as netquote or bankrate .
Be
aware of the types of vehicles that will raise your insurance premium. Vehicles
that have high horsepower, an expensive price tag, or are expensive to repair
also tend to have high insurance premiums. For example, sports cars and luxury
cars like Mercedes or Jaguars that require specialty parts, will likely have
higher insurance premiums than a Volvo or a mini van.
Always
check if the vehicle you own or may purchase is a previous write-off. This will
increase the premium - the vehicle will likely have mechanical problems which
will cause you to claim on your insurance.
Determine your area
rating.
Insurance companies usually use your area of residence or your zip code to help
rate your premium. If you live in an area with high crime rates, your insurance
will be affected, as the vehicle is at risk of being stolen or damaged.
Compare quotes from
different companies.
Once you have a clear idea of the insurability of your vehicle, and what
acquiring insurance means for you as a driver, look up the insurance packages
offered by major insurance companies to see what each one can offer you. The
easiest way to compare rates is online. The DMV has a good online site for
comparing rates.
- There is no proven "best time of year" to purchase car insurance. Rates aren't affected by the weather but rather on a number of factors including the number of insurers per a year, the number of accidents, the state where you live, etc. The best tactic is to check insurance rates on a regular basis throughout the year and always compare at least three quotes from three different insurance companies.
·
Keep
your driving record as clean as possible. Most reputable insurance companies are
leery of young drivers with speeding convictions or a high number of
collisions. Though it's still possible for high risk drivers to acquire car
insurance, they will likely be faced with higher premiums.
·
Always
look for student or young driver discounts. Many companies will offer a good
student auto insurance discount which rewards students financially for doing
well in school. The discount can also continue until a year after the student
has finished school. There are also discounts available for teen drivers based
on completing and passing an approved driver's education course. There are
several qualifications attached to a student driver discount. Find out more
information about possible discounts here: http://www.dmv.org/insurance/good-student-auto-insurance-discounts.php
Consider
a multi-car insurance plan. If there is more than one vehicle in your household, you may qualify
for multi car insurance. Insurance companies such as Admiral and Direct Line
offer policies which allow you to build up your own no claims bonus (NCB) if
you take on multi car insurance. Attaching your vehicle to a policy with more
experienced drivers, such as your parents, could also give you have a better
chance at a good rate.
