Cheap Auto Insurance for New Drivers

Statistically first year of driving is the most dangerous period in terms of accidents and fatalities. Extra care is required from all parties involved including parents. A few wise words in the ears of your teenager can help him/her stay safer. Most beginner drivers are teens and naturally they are easily excitable. They like to show their skills and test the limits of their cars. Even a mature new driver can be excited by prospects of driving own auto for the first time. Buying the first automobile is one of those milestones in a person’s life. Buying a nice automobile may be more important for them than finding and keeping economical car insurance for novice drivers. And that may cost them even more as discussed below.

Why Is It Harder to Get Cheap Insurance for New Drivers?

As a result, choosing the first time car insurance policy becomes extra important. Companies charge as much as four times more to new drivers because they are that much higher risk. These figures are based on likelihood of involving in accidents and that is based on historical data. When this is the case you cannot ignore the odds of young people causing accidents that will result in damages and injuries to others and themselves.

first auto insuranceMany people may think that cost of policies is the main issue when insuring a new driver. However, coverage is as important because they are unlikely to be able to handle the damages on their own. It would be devastating to lose the car they just got and start their adult lives with liabilities arisen from accidents they caused.

Essential Parts of First Time Auto Insurance Policy

So, two main components of buying first auto insurance policy must be handled attentively. First they should buy sufficient bodily injury and property damage liabilities. This usually means that you should buy a lot more coverage than the state minimum. Second part is to insure own injuries and losses. Injuries may be covered by a health insurance. This should be checked and determined if you need to buy Personal Injury Protection.

Deciding on Comprehensive and Collision Coverage 

Insuring the automobile properly may be necessary when you have an expensive one. As the costs would be a lot higher compared to an established and older driver the value of the vehicle insured would need to be reasonably high to make the coverage worthwhile. So, motorists should consider their financial circumstances and value of their automobile before deciding if it is worthwhile insuring their cars for collision and comprehensive coverage. If they can handle the total loss or repairs to their cars they may save a lot of money by not bothering to buy these covers.

First Car Is the Key to Affordable Auto Insurance for New Drivers

Choosing the first automobile is very important in handling the risks and costs. Firstly, buying a fast car for a new driver may be asking for a disaster. They barely have experience on the roads and handing them a car that loves to go fast may not be the way to go. Besides, you may not be able to find coverage for some sports cars when one of the drivers is a teenager.

Safer cars may be better option. Buying a relatively reliable but not expensive second hand car may allow the parents to handle the costs better. Not only insuring them would be reasonably priced but also you may not need to buy comprehensive and collision coverage depending on the price. For example, you could spend $5,000 for a good second hand automobile instead of buying a new one at $10,000. In this way you would keep $5,000 in your pocket to buy another one should the first one suffer a serious damage.

Now consider that the collision and comprehensive coverage is $2,000 for this car with young driver. And you have $1,000 excess. The difference between the value of the car and the cost of insuring is $2,000. Since you have saved some money by not buying a latest model vehicle you may be able to take this risk of losing $2,000 should the vehicle be totaled. This is just an example and you may be able to come up with your own solutions and justifications.

Whatever you decide remember that you need to sell this idea to your child if you are financing it all. When their friends are getting brand new cars for their birthdays or passing the test it may not be as easy to make them accept a second hand one. To get over this problem you should get them involved in the process of choosing an auto for the first time. This reduces disappointments and may make them grow to loving it.

However, you should totally go for a new or a year old car with the latest safety and accident prevention features if you can afford it. This may be the safest bet since a beginner is more likely to cause an accident. Some insurers offer large discounts for such automobiles that this may be a way to get affordable car insurance for recently qualified drivers. Furthermore, driving patterns should be considered too. For example, you may not worry much about the accidents if the vehicle is to be driven in a local small town setting. But you may need to make sure that the new driver is driving a safe car if he/she is going to drive in a congested city with regular highway driving.

Find Discounts to Get Cheap Car Insurance for New Drivers

Finally, have a look at ways to lower your premium by finding the discounts you can qualify. Remember that discounts aren’t just earned by having a long driving history and no claim. There are other ways of getting them. You can still find several discounts that apply to you too. For example, they can get the best car insurance for college students by finding companies that offer special discounts for such drivers, if the new driver is in the college. Another simple solution may be to join roadside recovery service providers like AAA and get around 10% membership discount on vehicle insurance. They would probably need roadside recovery cover anyway.

Best Car Insurance Companies for New Drivers

The last but not the least step to finding inexpensive auto insurance is to find the best insurer. You can see these companies by following the above link to another post. What you should remember is that some companies make it their policy to avoid new drivers while a few other insurers like to get in the ground level because more than 10% of these young drivers will never switch to another insurer.

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