Car insurance for New Drivers and Teenagers: Definitive Guide
A Definitive Guide on Car insurance for New Drivers and Teenagers
Car insurance for new drivers is really difficult because of the fact that most new drivers are teenagers who’ve never really been known for being responsible or levelheaded from an insurance company’s point of view. It’s also really difficult because Motor vehicles are the leading cause of death.
Another reason why new drivers find it so hard to get insurance is that there’s no driving record because they’ve never driven before.There’s no credit history because they’re under 18 and there is no previous insurance coverage so the insurance company cannot look at claims histories.The end result of this is that premiums for new drivers are usually high leading most people to get right to the cheapest option.
If you are looking for insurance for new driver’s you should put them on an existing policy if your parent. This means that, you put your child on your policy. Adding a minor to your policy can be expensive but don’t let that freak you out because it depends on number of factors. Your driving record, if you are a good driver, adding a new driver will be cheaper. Where you live, urban areas are priced higher than rural areas. Gender of the new driver, men are statistically more riskier than women.
As a parent, you may ask, why insurance for new drivers go up so much? the answer is the statistics. New drivers are very good at driving, according to the Insurance Institute for Highway safety, within the first six months, a new driver is eight times more likely to be involved in a fatal crash than an average driver. Also, within the first year a new driver is three times more likely to be involved in a fatal crash.
According to the National Highway Transportation and Safety Administration, a new driver whose had an accident is still 50% more likely to have another, so from an insurance perspective this gets really expensive. The costs come down over time once you get out of the first year. Most insurers have a surcharge that they charge the people who have been licensed from a senior school. Once you get through the first year, the insurance costs should be cheaper.
How to Lower the Costs
The first and arguably the largest part of it is the type of car, think a new Ferrari versus a Volvo station wagon. Just because the car is cheap does not mean it’s cheap to insure, this is because insurance companies consider a lot of factors. You can have two cars that may cost the same but they might have different repair costs, maintenance costs or safety records. The easiest things to do is to either ask your insurance agent but that’s quite cumbersome. The good thing is, you can use other options to get a better idea of how to get a good score card.
The options for lowering the costs are; number one, be a good student, most insurance companies offer a discount to full-time students, and if you’re a good student the discount can be as much as 5 to 10% which can add to several hundred dollars a year.
Having an accident makes it very expensive especially for new drivers because it affects the rest of their driving career. A few or even just one ticket could increase your premiums by 60% and it’ll take three years for the premium to drop off your record so drive safe.
Finally, getting your child into a quality driving school enhances their driving reputation with the insurance company. Most people are familiar with driver’s ed where they have driving courses catered specifically towards teenager. Teen Smart is another highly successful driving school in California that can enhance your reputation with an insurance company to get cheap car insurance up to 10% for a new driver. Drive safely and take driving courses since that’s about the best you can do in the meantime but as you start reaching your mid 20s, you’ll no longer be penalized for being a new licensed driver.