Lowering costs on teen and young driver insurance is a challenge. Auto insurace companies use statistics to determine risk, and they have determined that teenagers and people under 25 are higher risk and get a higher rate. However, there are some steps you can take to help lower the costs.
It is an unfortunate fact, but according to statistics young drivers are a much greater risk on the road then older, more experienced drivers. Experience is a great teacher in helping drivers avoid collisions. Insurers know this and that’s why the shock when you see a car insurance quote for a teen or young driver. Not all is lost though.
One of the things that many people don’t realize is that auto insurance rates vary from company to company. Certain companies may even specialize in offering competitive insurance to high risk consumers. So that means one of the best ways to lower your auto insurance costs is to get some comparison quotes. Shopping for quotes could save you hundreds annually.
The Insurance Information Institute recommends that you get at least three quotes from different providers. Te get the most accurate comparison so you can see how each company differs in rate, use the same amount of coverages, deductibles and mileage when you request your quote. Those are some of the things that can affect your rate.
One of the easiest ways to get quotes for young driver insurance is by visiting a comparison Web site. These sites are convenient because you complete a single online form and get several quotes from competing companies and agencies.
There are other ways to help lower the costs, and young drivers can take some responsibility for this. Obviously, maintaining a good driving record is critical. Speeding tickets and other moving violations can bump your rate up in a hurry. Along those lines, taking a driver training or defensive driving class may qualify you for a discount from your insurer.
Another discount that’s almost always available is known as Good Student Discount. With this discount, if you keep a good grade point average you can qualify for savings.
Some people may raise their deductibles on collision and comprehensive to lower their premium. Of course you’re going to want to have the money available for the dedutible if you need to make a claim.
One thing financial experts recommend you don’t do is lower your limits of liability on car insurance for young drivers. In fact, it’s usually recommended to increase the limits. This is because of the greater liability risk that results if a young driver is at-fault in a collision. Your premium will probably increase, but you’ll be glad you have the extra financial protection.