Once teenagers get their full license, it’s natural for them to immediately want to get behind the wheel and even take their friends out for a cruise. Having a great insurance policy as a young driver is by far the most important thing when it comes to driving.
Unfortunately, finding cheap car insurance for new drivers under 21 isn’t always the easiest thing to do. Here is some useful information to help guide you along the path of getting the cheapest quote.
Why Car Insurance Is so Expensive for New Drivers
Insurance agencies run through a series of factors that help to determine the quote that they provide you. The factors that get taken into consideration typically revolve around the location and whether it’s densely populated, experience, credit and driving history, and other variables.
Young drivers prove to be more of a risk because they don’t have as much experience; therefore, they are more likely to get into an accident. Additionally, their driving and credit history hasn’t built up enough to lower the risk assessment.
Why Affordable Car Insurance Is Needed
It costs much more to ensure a younger driver because the insurer is more likely to pay out than what they are with mature and experienced drivers. However, new drivers who are on separate insurance plans find it challenging to handle the weight of the cost.
The majority of teenagers work part-time while still managing other requirements such as school. They likely only make minimum wage, or somewhere in that spectrum, which means a lot of their earnings go towards gas and insurance. Cheaper insurance ends up being critical to their financial stability.
The economy is still recovering, and many parents aren’t as eager to take on the responsibility and increase in policy rates that happen when adding their young driver to their policy. Parents who do pay for their young driver’s insurance also end up feeling the strain, especially if they have more than one kid.
How to Compare Insurance Policies for Young Drivers
Even if you are a new driver, there are still things that you can do to get cheaper insurance. First and foremost, you need to spend time getting quotes from different agencies, and comparing policies against each other. What you pay often isn’t going to matter if you aren’t getting what you’re paying for.
Whether you’re a young driver or not, comparing quotes and options is vital to obtaining some of the best rates. Here are a few things that you need to consider when going through your options.
The costs are going to be a significant factor when purchasing a policy, so getting quotes from multiple insurers is going to help you find the cheapest insurance. Remember to look past the actual figure and look at the limits and benefits of the policy.
Spend time going over the policy to ensure that you know what and when you’re covered for. Try asking if the policy covers new-for-old or if it’s a write-off. What about emergency repairs, transportation, and accommodation?
Is there a lifetime guarantee on repairs? Can you choose your own mechanic? Questions such as those are going to help you select the best option.
3. What’s Not Covered
Check all limits that apply to different policies so you can see if one offers better protection than the competitor does. Also, investigate a general exclusion list, so you know why and when your insurer is likely to refuse a claim.
Investigate how much you need to pay for your deductible while submitting a claim. It’s also recommended to look at whether you can make adjustments to the deductible to get a lower or higher premium.
5. Claims Process
How does the insurer handle its claims process? What do you need to do to file a claim?
During which hours can you contact your insurer? How quickly are claims processed? Answering all these questions can help you determine whether the claiming process would be too tedious or just right.
6. Additional Options
Check to see if your coverage plan has other options that benefit you. Additional options can include windshield coverage or roadside assistance.
Tips for Getting Cheaper Insurance
Shopping around and speaking with multiple agencies to get a variety of quotes is still going to be the primary source of finding cheap car insurance for new drivers under 21. However, there are still other steps that you can take to possibly help a young driver out.
1. Look for Young Driver Discounts
Trying to qualify for as many discounts as possible can severely impact your insurance rate. From Safe Driver discounts to Good Student discounts, there are a lot of cuts out there to help young drivers save.
Additionally, if you happen to be a college student who goes away to school, many agencies offer discounts there too. Talk to your insurer about why you need your rates lowered, and inquire about discounts that you qualify for.
2. Enroll in Safety Courses
There are many driver safety courses available for young drivers. By completing those courses, you become less of a risk than someone who hasn’t.
Many states require auto insurance companies to provide discounts to those who have completed courses. Those discounts can range upwards of 20%.
3. Drive a Less Expensive and Safety Tested Car
Like most people, young drivers want to be flashy and drive an expensive car, if it’s in their budget. Insurers do use the type of car that’s getting insured while determining the policy rate.
That means the more expensive the vehicle, the higher the price. Opting to purchase a vehicle that has top safety testing results is another excellent way to help lower your premium costs.
4. Monitored Driving
Many insurance companies now use what’s referred to as telematics. The insurer installs a device on your car and helps to provide reporting on speeding, when you drive, how often you drive, harsh braking, and more. If the reports show that you are driving safely, your insurer may offer you a reduced premium after a few months.
The Bottom Line
You can still afford policies that are in your budget by looking around to get multiple quotes and by asking questions. However, you need to make sure that you do your work if you expect an insurance agency to do its job.
Asking questions, knowing what you need and are looking for, not ignoring your deductibles, and thoroughly researching when comparing rates is what’s going to help you get the cheapest insurance if you’re a new driver. Plenty of resources are available to you; all it takes is a little time looking into them.