Young Driver Car Insurance Sticker Shock!
Unless they are insurance agents, most parents are stunned when their teenager starts to drive. They are shocked because of the price of car insurance, which may be triple that of the experienced drivers. This is because the student driver does not have their own driving history, and so insurance companies lump student drivers together with other drivers their age. This group, traditionally, experiences a high accident rate, and young males are hit even harder than young females.
Available Teenage Driver Discounts
You can save money by looking for discounts that many car insurance companies offer. Even though teenage drivers tend to be in a high risk group, insurance companies recognize that some young drivers are a lower risk than others. For instance, students who maintain a good grade average will earn a discount from many major companies. The companies usually require a B average.
Also, insurance underwriters – those who assign risk and set rates – will like it if the student driver takes an accredited driver safety course. The cost and time of taking such a course are sure to be worth it for a couple of reasons. For one thing, these courses have been proven to teach young drivers to be better drivers. In addition, some insurance companies will offer discounts to drivers who take these classes! You can find these classes by searching on the internet, checking with your state insurance department, or just asking your insurance agent or company.
You may also profit by bundling all insurance policies with the same company because of multiple insurance policy discounts. If the parents and student driver use the same company, and maybe also throw in the homeowners policy, then some companies will give the family a break to keep their business. The multiple policy discount will not always give you the lowest possible rate, but it is worth checking into.
If the cost of insuring a student driver on the parent’s fairly new car is just too high, consider purchasing an older car for the young driver. Where the newer car may need full coverage, especially if it has not been paid off yet, an older car will probably just need the minimum required liability car insurance. The savings can be hundreds of dollars a month on car insurance, and that may be more than the price for a used car payment!
Shop Around For Affordable Insurance
You will find big differences between insurance rates, and it does pay off to shop around. This used to be much harder when you had to call around and give complex information over the phone to multiple insurance companies in order to get a quote. Now, with the internet, you can usually fill out a quick form with basic information, and then sit back and get car insurance quotes delivered to you. If you are looking for an online insurance quote form, try to find one with third party verification like the Better Business Bureau Online Program or The National Ethics Check. The quote form should also run on a secure server so your information is protected. However most online quote forms will not need private information, like social security numbers, just to run a quote.