Insurance Tips for Young Drivers to Help Save Money
Young drivers find insurance to be an onerous financial burden. High premiums and the promise that ‘better deals’ may lie around the corner make it a stressful undertaking. For those just starting to drive, the challenge is even greater as many insurers either refuse to offer cover or if they do, have loaded the cost so high that its practically unaffordable. With that in mind, here is a list of practical steps young drivers can take to reduce the cost of their car insurance without sacrificing coverage:
1. Lower Your Coverage – Reducing the amount of coverage you buy can lead to significant savings, particularly for less experienced drivers. Mindful consideration needs to be given as to the amount of protection required but if each variation in coverage is carefully considered, then it shouldnt result in any sacrifice of security.
2. Shop Around – Although the temptation may be to go with the insurer that offers the lowest premium, its important to remember that often more than just cost is involved. Reputation, reliability and customer service are all important factors that need to be balanced when selecting an insurer.
3. Opt for A Higher Deductible – Insurers can reward customers who opt for a higher deductible on their policy. This increase in ‘exposure’ means that the insurer is confident that any claim will result in only a partial payout. It also offers the young driver a greater level of control over the costs of the policy.
4. Buy A Safer Car – Cars that are statistically less likely to be involved in an accident or have a lower repair bill when they are can significantly reduce the cost of car insurance. This means researching the tyres and brakes to ensure that they are rated highly for safety, as well as opting for a car with additional safety features such as anti-lock brakes and airbags.
5. Take The Defensive Driver Course – Young drivers are seen as a greater risk for insurers, however, taking the defensive driver course can help in reducing premiums. Not only does this illustrate that the driver is taking the risks associated with driving seriously, but also many insurers reward drivers who complete the course.
6. Bundle Insurance Policies – For those young drivers who are also purchasing life insurance or homeowners insurance, bundling these policies together with their auto insurance can also result in significant savings.
7. Consider A Track Day – For those young drivers who feel confident in their vehicular abilities, participating in a track day can also be a great way to show an insurer that theyre not the risk theyre made out to be. Not only can the experience of driving in a controlled and safe environment be therapeutic, but it can also have a positive effect when it comes to reducing insurance premiums.
For young drivers, understanding the ways to save money can be a challenge. Using all the available discounts can help bring down the cost of car insurance and there are a few key strategies young drivers should consider in order to reduce their insurance premium. The most important thing is to do your research and find out all the options available to you. Here are some additional tips:
1. Drive less. Most insurers will offer lower premiums to those who drive less, so if possible, walk, bike, carpool or use public transportation to reduce the number of miles you put on the car.
2. Review other discounts. Young drivers may qualify for additional discounts they dont know about such as discounts for good grades, safe drivers and membership in certain organizations.
3. Consider a pay-as-you-drive program. Some insurance companies offer programs where they monitor your driving habits, and if you drive fewer miles or maintain a good driving record, youll get a discount on your premium.
4. Check for low mileage discounts. Insurers offer discounts to drivers who drive fewer miles, usually to those below a certain threshold.
5. Buy a used car. New cars can come with significantly higher insurance costs. Buying a used car thats reliable can help keep costs down.
6. Increase your deductible. Increasing your deductible on your policy can often lead to lower premiums. Just make sure you know how much you can realistically afford when an accident happens.
7. Shop around. Dont just settle for the first quote you get shop around and compare rates from different insurers to make sure youre getting the best deal.
Its important for young drivers to stay informed and know the best ways to save money on car insurance. One of the most important things to consider is being an organized and aware consumer to ensure that theyre getting the best deal. Here are some additional tips for young drivers:
1. Ask for higher deductibles. One of the simplest and most effective ways to lower your insurance premium is to increase your deductible. The higher the deductible you opt for, the lower your premiums will be.
2. Compare quotes online. Shopping around for car insurance is one of the easiest and most effective ways to find the best deal. Shopping online gives you quick access to a variety of different insurers and helps you save a lot of time and effort.
3. Consider a shorter policy. Car insurance policies typically run for a 12-month cycle, however, there are some insurers who offer policies for 6 or even 3 months. For young drivers who may be likely to change vehicles or need coverage for a short period of time, these short-term policies can provide a cost effective solution.
4. Make sure youre getting all the discounts available. Many insurance providers offer discounts for young drivers who have a good driving record or are a good student. So make sure to ask your insurer about any discounts you may qualify for.
5. Dont buy too much coverage. Its essential to adjust the coverage you need to make sure that youre getting the best deal for your money. Just make sure that youre still protecting yourself in case of an accident.
6. Use the car for the right purpose. Some insurers offer discounts to policyholders who only use the vehicle for pleasure, business or commuting. So make sure to speak to your provider about which the best usage is for your situation.
7. Consider other forms of transportation. Walking, biking or taking the bus may not seem like the most exciting option, but if youre only driving occasionally, youll likely be able to find a much better deal.
When it comes to getting the best deal on car insurance, young drivers need to be mindful of the various discounts and strategies available. In addition to the more common ways of reducing the cost of insurance, there are also some lesser-known options that can help young drivers save money. Here are some additional tips:
1. Consider a black box policy. Most insurers offer pay-as-you-go policies, which use a device or app to monitor your driving and offer discounts on your premium based on your performance.
2. Ask about multiple-car discounts. Insuring multiple vehicles on the same policy can often result in a discount, so its worth checking even if you dont have another car registered in your name.
3. Consider no-claims-discounts. In some cases, the length of time youve been insured can result in discounts. So before signing up with a new insurer, ask them about any no-claims bonuses you may be eligible for.
4. Ask your family. If youre related to a person whos already insured, ask if you can be added to their policy. Some insurers will allow you to be added to a family members policy without affecting their premiums.
5. Look into gap coverage. Gap coverage is a type of insurance that will cover the difference between the value of your vehicle and the amount of money you owe on it, in the event of a total loss. This type of coverage can help you save money and protect you in the event of a major accident.
6. Avoid modifying your car. Installing aftermarket parts or customizing the vehicle with paint jobs and decals can drastically raise your premiums. So try to keep your modifications to a minimum, unless youre willing to pay a premium.
7. Update your details. Make sure you keep your insurer informed with any changes in address, job or marital status that could affect your coverage or require you to update your policy. Failing to do so could result in higher premiums.