Young Car Insurance Can Cost a Bundle

December 1st, 2009 by Andy Darwinson

Often the potential that comes with buying a first car is met with surprise at the cost of the insurance. You are not alone. Young car insurance comes with monthly premiums that will sometimes cost more than the monthly payment on the vehicle!

Don’t let this get you tied in knots - there is a reason for the high price. Insurance companies use driver statistics to determine price, and unfortunately car insurance for young people is more expensive due to these statistics. Young drivers have more accidents than seasoned drivers, which creates a higher risk for the insurance company. Your driving history won’t be able to overcome the statistics in regard to cost as a young driver.

Gender plays a role as well - male drivers can expect to pay higher premiums than females. This is also due to statistics. Men often take more risks when driving than females. While it may be good to take risks playing sports, it isn’t so good when being responsible for a vehicle.

Experience driving helps the more seasoned driver when the car slides on a rainy or snowy highway. If you’ve only driven a year or two, you may not have already learned how to control the vehicle in a situation like this.

There are still ways to save on your insurance premiums, even though they won’t be a low as an experienced driver. There may be discounts on your policy that will lower rates. If you have completed a driving class, have a family member in the military or have other discounts available through a family’s employer, research the cost. Make sure you ask if discounts are available.

If your grades equal a “B” average, you may qualify for a “good student” discount under some policies. Ask your car insurance provider if this is an available discount on your current policy.

If your parents have insurance with a company, by all means, stay with that company for a multi-car discounted rate. Of course, you still have to be living at home to receive it. If you’re on your own and have other insurance, consider moving the products to one company for a multi-policy discount.

While the prospect of purchasing a more inexpensive car and carrying only liability insurance is not always appealing, it is one way to save money. If you have a loan on your vehicle, your lending institution demands full coverage on your car, so it’s not an option.

When looking into insurance for your new car, remember the best way to get lower rates is to comparison shop. Going online streamlines the hassle of calling several companies. Many sites offer the option of entering information once, then getting multiple quotes. Once you have established a good driving history, your rates will go lower, but make sure you are getting the best deal on young car insurance now.

A cheap car insurance rate doesn’t mean you give up quality. Are you driving a classic car, then you probably need vintage car insurance.

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Posted in Auto Insurance
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