When the odds are against you it is best to use every legitimate method to reduce auto insurance premiums to affordable levels. The first year of driving is usually the most perilous and therefore the toughest to get acceptable rates. You need to brace yourself because you will have to pay a lot of money. However, it is usually just a stumbling block on the way. Once you have at least one year of experience and come out with no accident or traffic ticket, a few more insurers will open their doors to you making it more and more affordable each term.
Even if they don’t have much money, many youngsters can buy a small used car as a starter in the early years. Still quotes are usually in the thousands and fluctuate considerably between companies. Therefore, it becomes extra important to know a few tricks to get the cheapest vehicle insurance for youngsters and some of them discussed below;
- Buy a sensible car
Lack of experience and strong statistical risk indicators against you is enough and you don’t want to add a high risk auto to the already delicate situation. You may not even be able to find any automobile insurance coverage when you have a sports car in the first year. That would be too much to ask and not really a sensible move.
This doesn’t mean that you cannot buy a nice automobile. Actually, it would be better if you can buy a new one because their better safety and security features can qualify you for further insurance discounts. Here are a few specifications you should be looking for when buying an auto for a teenager. First of all, the engine size should be below 1200 cc. And you should avoid sporty models that have body kits, alloy wheels and expensive sound systems. You will get charged additional premiums for those features.
Many teenagers like small vehicles anyway and they should be fine for the first few years. It should be only you and occasionally parents in the automobile for the first couple of years. Having friends with you while you are not fully confident is definitely a bad idea. They would be fine out and about and would fit in smaller garages that allow you to claim additional savings for parking it in the garage. Buying the right car is the most effective way of controlling vehicle insurance costs young and teenage drivers face.
- Get good grades
You probably know by now that students with good grades are praised by parents and teachers. You should know that automobile insurers like them as well and offer good student discounts. You should look for companies that offer the lowest good student rates. Some of them are less scared of youngsters and they tend to quote lower car insurance prices.
- Buy an independent roadside recovery coverage
A few carriers offer special discounts of about 10% for the members of certain independent roadside recovery services. AAA is one of those that can qualify you for them. When the vehicle insurance premium is in the thousands 10% discount is a lot of dollars to ignore.
Besides, recovery services membership is great in early years and when you have an older automobile. No matter where you are in the country and whatever vehicle problems you are having they will come to help. They will either fix it there or take it to the nearest garage and you to the nearest bus or train station depending on membership level. They are not expensive either, which makes them totally worth it.
- Claim low mileage discounts
One good thing is that teenage drivers don’t usually travel long distances and the average yearly mileage is around 7,000 for this age group. The car may be sitting in your parents’ home most of the time when you are at college or school. Try not to take long distance journeys until you are very comfortable with operating the automobile. This would mean that you will not cover many miles and therefore you can ask for low mileage discounts. Most companies offer lower rates when the distance covered is less than 7,500 miles.
- Consider pay-as-you-drive-insurance
If you don’t give them something to go with, underwriters will bundle you in with your peers who are the riskiest drivers on earth. One way of proving that you are careful and get the lowest young driver vehicle insurance rates is to allow them see how you are doing. They can monitor this by installing a small device in the car. If you don’t go crazy behind the steering wheel by speeding and braking often, don’t hit the road between midnight and 4 am and keep a low mileage you will be rewarded with a great low premium thanks to Pay-As-You-Go programs.
You may not like the idea of someone watching your every move but the savings make it worthwhile. You can reduce your auto insurance premium by 30% if you are calm and careful. Furthermore, you will become more conscious and gain better habits. Naturally, people mind how they go when they know that someone is watching over.
- Add an older driver on a teenager’s policy
Generally adding another person would mean higher premiums. However, you can benefit from adding an experienced person with no claim. You need to be careful here and not get wrong ideas. Essentially, you buy the car insurance policy on your name and add someone else (generally a parent who uses the car at times).
The other way around (getting an older person to buy a policy on his/her name and add you as a named driver) is called “fronting” and is not legal and ethical. The primary driver should be the person who uses the car more often. Then, it is perfectly alright to add another person on and this can qualify you for discounts depending on his/her records and providers.
Also, you can consider “named driver policies” that only cover listed names and nobody else. These policies are restrictive and aren’t offered by many carriers and may not be available in your state.
- Learn to become a better motorist
You wouldn’t probably be keen to take further lessons and practices when you just pass the driver’s license test or on top of the lessons you are taking. However, some of these programs like teensmart are proven to reduce accidents. That is why a few companies will offer you further savings once you complete these programs and get the certificate.
- Find special deals
Various companies run special promotions at times that can be attractive regardless of age or driving history. For example, they may run a special Facebook campaign where you can get a 10% discount for liking their Facebook page and using the special code there. Also, some auto manufacturers may offer special deals or even free insurance if you buy a car from them. It doesn’t take long to find out online if there are such promotions at the moment.
- Pay the premium in full
This is a great solution that is not known by many people. A few automobile insurance companies offer additional savings just for paying the full premium at the start. You can get between 4 – 10% discount if you manage to put together the money. Furthermore, you will not incur fees for setting up payment plans and face the interest charges for deferring it. This could be further 3 – 4% saving for you. Otherwise, always check how much it is going to cost you to set installment plans.
10. Shop for the most competitive carriers
It sounds so obvious but many people fail to shop around extensively when they are buying policies. When the stakes are high the rewards are handsome as well. The best part of it is that you can find out the best deal on the market in less than an hour if you use a good comparison website. The difference between an averagely priced and the least expensive insurance for teenage drivers can easily be a couple of thousands of dollars per annum.
You may be a beginner as a motorist but you don’t have to make beginners’ mistakes when buying vehicle insurance. Spare a little time and find out about these and other ways to cut the costs. There are so many tools online and you can always call an independent broker to help you out.