Getting insurance at a young age basically translates to you paying higher than usual insurance premiums. There are many factors that go into your insurance premium that determines what your rate would be; this means as a young driver, you’d naturally be paying higher insurance rates simply because of the lack of experience you have.
Relating to the experience a younger driver has, younger drivers are more of a risk when behind the wheel. Regardless of their good driving behavior, it simply boils down to the level of risk that drivers bring to the road.
If you are a younger driver here are some tips you should keep in mind before you start shopping around for car insurance.
Usage-Based: A lot of car insurance companies are aware of risky drivers on the road. So the way they have made this better for younger drivers on the road is tracking your driving. Essentially when you sign up for an insurance company they will either install a tracking system in your vehicle or on your mobile device that relays your driving habits to the insurance company. As they collect the data, it will help determine the level of risk you bring to the road and what your insurance premium would be.
Type of Vehicle: The type of vehicle impacts your insurance as a young driver. We all understand that you want the best of the best when it comes to showing off to your friends, but honestly make sure you have the lifestyle for that. Drive a coupe and luxury car when you are older, the best thing for you at this point in time is having a nice vehicle that is packed with safety features.
Shopping Around: This, of course, is a no brainer, but shopping around can really help you out. Getting multiple quotes from many insurance companies will be able to help you select the best insurance company for your car insurance.
Your Own Policy vs. Parents: We highly recommend that you stay on your parent’s policy. Granted your parents have a good driving record you will be able to take advantage of their good driving habits and get lower insurance premiums.
There are many different things you can take advantage of as a new driver to help with your insurance policy. We advise you to take the above steps to help reduce your already expensive premium. Not to mention, you should also search around for discounts you can apply to your premium after the fact. Anything helps, if you are shopping around as a new driver and would like to speak with an insurance agent, contact one here.