Auto Insurance Tips for new Drivers

Many new drivers experience several challenges as they begin to hit the road, but even before they can venture out they will need insurance. Driving without the proper insurance coverage is not only hazardous to your pocket but it is also against the law to drive a motor vehicle without having the most minimal insurance policy. So I would like to provide some worldly advice when it comes to making the right choices for insurance.

Vehicle choice: If you don’t have excessive cash for your budget, than you may want to rethink your vehicle choice. Insurance is gaged on experience; which as a new driver you will have next to none, secondly it will be based on the size, type, and motor of the vehicle you intend to insure. Older drivers are likely to get some consideration for maturity, unless they are consider to be elderly, than this may not work in their favor. Sports cars carry the highest premiums; and as you add more horsepower and size, your dollar amount will increase as well. Distance being traveled also can be a small factor; so if your commute is going to be excessive this will impact your insurance costs. TIP- First time drivers should consider a sedan with a small motor for their first few years behind the wheel. This choice will ensure a lower premium and if a clean record can be maintained it will serve to ensure a lower premium later on.

Increasing Deductible: The deductible is a set cost that you must pay towards any claim made to your insurance company in the event of an accident or other claim. The higher the deductible, the lower your monthly payments or premium will become. However, higher deductibles will also increase your cost to perform accident repairs, or replacement if your vehicle is stolen.

Combining Insurance: Most insurance companies have discounting available for customers with more than one service. Combining home, auto, and other vehicles will usually be beneficial when it comes to haggling over cost, and some companies guarantee as much as 10-15% discounts for adding on the extra services.

Shopping: There are plenty of fish in the sea, and when it comes to insurance the pool is overflowing! Take your time to call up both brokers and independent companies, before jumping at the first offer on the table. Avoid companies that refuse to discuss options, or try to bully you into more expensive options that you are not looking for. Knowing what insurance is and the minimal requirements will give you a better understanding of the base cost versus the extra costs, like fire, water, and other insurance coverage types.

Keep it clean: Drive at the speed limit, avoid infractions like speeding, failing to stop, or anything driving related. Anything that can be considered a driving infraction will increase your insurance cost, either at the next renewal or immediately after the infraction is recorded on your record. New drivers are monitored carefully to ensure they are not a liability, and first time drivers with infractions are usually targets for the highest insurance costs.

Share the load: If you are a new driver in a home with other insured drivers, and are considering purchasing a new vehicle; try sharing or being added as a second driver. The cost to add a driver to an existing policy is much lower than a new driver getting his own policy. A year or two sharing will add to experience points, and will possibly strike a better deal with the same company than going out another insurance provider on your own.

Drivers Education: Most driver education courses will decrease your insurance premium so before signing up for a class; verify if their program offers an insurance premium which really can pay off in the end.

Insurance isn’t cheap, and it sometimes can be a huge hassle, but either way it is the law! Drive safely, responsibly, and bide your time and soon your premiums will slowly begin to decrease to a much more hospitable cost! Good luck!