Cheap Insurance Options For New Drivers
Getting on the road is not cheap. All 50 states require some level of insurance for any auto and driver first taking to the roads. For many first time car insurance consumers, this insurances comes at a great expense, making it difficult to afford. There are ways of getting the needed insurance that can save you money, and get you those cheap car insurance policies.
Education
Most insurance companies offer reduced premiums for new drivers that can provide proof of driver’s education classes. Typically, after completing such courses, the student receives a certificate and signed slip that proves they competed the course. When going to find insurance, this slip is provided to the agent who then enters it into the search. Savings through driver’s education courses can be as much as 10 percent of the new insurance policy.
Some insurance companies go a step further and provide insurance discounts to new drivers that excel in academics. This is yet one more reason it is important to do well in school; it saves you money. When you are searching for insurance, ask the agent about such programs. Have current transcripts from high school or college, along with any diplomas, report cards or endorsements. The companies that offer this use an advanced regression analysis that shows young and first time drivers with excellent academic records tend to be more responsible and better drivers than those that do not have such a record.
Collective Policies
Following the idea that savings are found when you work through a group policy, collective policies offer first time insurers the chance to get cheaper insurance. These policies are typically family style policies. The parents, with a long standing track record with an insurance company, place the first time insurer onto their policy, getting a cheaper policy for the new driver.
If this is not an option, search your community for agents that specialize in group/collective policies. These policies take a “risk pool” reduction; the idea being the more people you have in the risk pool, the less expensive the insurance becomes for everyone as the risk is spread out throughout the group. These policies help new drivers get on the road and save a few dollars.
Incentive Policies
Incentive policies offer methods for new drivers to reduce the premiums over time, as they gain a proven track record of safe driving and financial responsibility. As the driver maintains a driving record without incident for a prescribed amount of time, the monthly policy premium goes down. FOr each on time payment, the policy goes down a prescribed amount. These policies are a great way of getting inexpensive insurance and building good records.
Community Involvement
These types of policies are also known as the “good student” policy. Students and new drivers that work philanthropic jobs such as volunteering with shelters, homeless groups, peer advisory, or animal shelters often qualify for reduced insurance policies. The idea behind these policies is to reward those that improve or show character with themselves and community. To receive these discounts, find an agent that specializes in finding such insurance and bring along signed records or time cards that verify the work done. Do some good, get some good back.
Buy a Used Car
New drivers are often ready to purchase their first vehicle. The auto choice you make directly impacts the cost of the insurance premium. Along with the car, certain combinations create an expensive policy. For example, an 18 year old male, fresh out of high school who purchases a high-powered convertible sports car will end up paying considerably higher premiums than an 18 year old male who purchases a sedan or hybrid style auto. If money is tight, consider buying a used, slightly “less sexy” car while you begin your financial build. Finding cars with reduced premiums is easy in this day of Internet searches. Simply enter “lowest insurance premium cars” and see what comes up. Wait until you build your fortune a few years and keep a safe driving record before you make the plunge into the Porsche Boxster.
Keep Shopping
Like any area where you are purchasing something, it pays to shop around. Do not think that the first quote you get will be the same across all insurance companies. If you feel one is too high, get another. Get as many quotes as possible, and get the one that is not just the cheapest, but the policy that is suitable for your states laws, your car and yourself. One policy may be a few dollars cheaper than another, but be sure to read the fine print. What does that savings end up costing you if you are involved in an accident? If the answer is that the more expensive policy will end up costing you thousands, that few dollar extra per month just may be worth it in the end.
As you find you policy and purchase it, keep in mind that you can keep getting cheaper and better policies by maintaing a safe and competent driving record. In addition, pay your premiums on time, every time to get reduced insurance and to increase your credit rating. Insurance companies look at proven financial records along with proven driving records.
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