Cheap Auto Insurance for New Drivers

Arranging the first policy for a freshly licensed motorist is a challenge in many aspects. This post will try to help you make it easier by looking at the hurdles, determining good coverage, choosing the right car and finding the discounts that can make automobile insurance more affordable.

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 a teenager can help him/her stay safer. Most beginners are teens and naturally they are easily excitable. They like to show their skills and test the limits of cars.

Even a mature novice driver can be excited by prospects of getting behind the steering wheel of his/her own auto for the first time. Buying the first automobile is one of those milestones in a person’s life. Purchasing a nice automobile may be more important for them than finding and keeping economical premiums. And that may cost them even more as discussed below.

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

Companies charge as much as four times more to new motorists 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.

When the figures above clearly demonstrate the dangers choosing the first time car insurance policy becomes extra important. When the likelihood of a claim is high you should be wanting to protect yourself as best as you can against them.

Many people may think that cost of policies is the main issue when insuring a novice 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 must be handled attentively. Essentially they should have 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 handle own injuries and losses. Injuries may be included in a health plan. This should be checked and determined if you need to buy Personal Injury Protection.

Deciding on Comprehensive and Collision Coverage 

You need to think about it carefully especially when you have an expensive automobile. As the costs would be a lot higher compared to an established and older person the value of the vehicle would need to be reasonably high to make the coverage worthwhile. So, motorists should consider financial circumstances and value of the auto before deciding if it is worthwhile including Collision and Comprehensive. If they can handle the total loss or repairs they may save a lot of money by leaving them out.

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

Choosing the automobile is very important in handling the risks and costs. Buying a fast car for a novice 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 a teenager is listed.

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 Comprehensive and Collision depending on the price. For example, you could spend $5,000 for a good second hand automobile instead of a new one at $10,000. In this way you would keep $5,000 in the pocket to purchase another one should the first one suffer a serious damage.

Now consider that the Collision and Comprehensive is $2,000 for this car with a young driver. And you have $1,000 deductible. The difference between the value of the car and the cost of making a claim (premium + deductible) 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 friends are getting brand new cars for 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. This reduces disappointments and may make them grow to loving it. The point to focus on is that they are getting a car.

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 carriers offer large discounts for such automobiles that this may be a way to get affordable vehicle insurance for recently licensed motorists. Furthermore, traveling patterns should be considered too. For example, you may not worry much about the accidents if the vehicle is used in a local small town setting. But you may need to make sure that they have a safe car if they are going to take highways often and have to navigate in a congested city traffic.

Find Discounts to Get Cheap Car Insurance for New Drivers

Finally, have a look at ways to lower the premium by finding the discounts you can qualify. Remember that discounts aren’t just earned by having a long 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 automobile insurance for college students by finding special discounts for them, if the person is in college. Another simple solution may be to join roadside breakdown service providers like AAA and get around 10% membership discount on premiums. They would probably need roadside recovery anyway.

Best Car Insurance Companies for New Drivers

The next step is to locate the most competitive carriers, which are more likely to offer good rates. You can see these companies by following the above link to another post. What you should remember is that some of them make a point of avoiding them while a few others like to get in the ground level because more than 10% of these young people will stay with the carrier for life.

When the premiums are high shopping around for the lowest vehicle insurance quotes is more rewarding simply because even a 10% saving would mean a lot of money. Also, this group of motorists probably face the widest price swing for the reasons explained just above. Some love them and some avoid them like a toothache and you can imagine why there would be huge price difference between those two. So, why not start shopping around by entering your zip code above.