Car Insurance Guide for New Drivers

New drivers are going to be at a disadvantage when they shop for car insurance. Unfortunately, car insurance companies label new drivers as high risks because they are inexperienced. The statistics show that people who have been driving for less than three years are more likely to be the cause of a collision, and the reason is because they are not as familiar with all of the dangers on the roads and how to avoid them. Until they gain some experience, they will be paying some of the highest car insurance rates.

New Driver

Add Teens to Their Parents’ Policies

Although new drivers will have difficulties finding affordable car insurance, they do have options that will help them to lower their rates. If they are teenagers living in their parents’ homes, the best plan would be to add the teens to the parents’ policies rather than purchase their own. Teenagers who have their own policy will be charged some of the highest rates. If their names are added to a parents’ policy, the rates will increase, but this amount will be much lower than if they asked for a quote for their own coverage.

Take Driver’s Training

As was mentioned above, the problem new drivers have is that they are inexperienced. Anyone who can demonstrate to a car insurance company that they have taken the approved driver’s training course can receive a discount off of their premiums. Car insurance companies consider taking a driver’s training course to be gaining experience, so they have an advantage over those who have not had these types of courses.

Earn Good Grades

New drivers may still be in school. If this is the case, they will want to show that they are responsible people and earning good grades. If they can do this, they will receive the good student discount. Statistically, those who earn the highest grades tend to cause the least accidents, so becoming a good student will show the car insurance companies that they will be as judicious in their driving as they are in their studies.

Set a High Deductible

Car insurance companies are taking on a great risk when they insure new drivers. If these drivers can reduce the car insurance companies’ risk by raising their deductibles, the companies will also reduce their rates. The deductible is the amount of money that the policy holders will need to pay before the car insurance company pays the remainder of the bills.

Collision coverage is the part of the insurance policy that will pay to repair the policy holder’s vehicle. This type of coverage usually has a deductible. In order to lower their rates, policy holders can agree to set the deductibles at the high rate of $500, for example. If there is a collision and the car is in need of repairs, the policy holder pays the first $500. If the bill comes to $1,000, the car insurance company will pay the other $500.

Obtain Several Quotes

Car insurance companies are all different, so new drivers will benefit from requesting a quote from more than one of these insurance companies. Some car insurance companies are not eager to insure new drivers because they cost them more money than those who have been driving for at least three years. The car insurance company also exists that will go out of its way to insure higher risks for more reasonable rates.

Seek Women’s Only Policies or Discounts

Inexperienced new drivers are higher risks, but the girls are less of a risk than the boys. If young women look for a women’s only policy or discounts, they will be insured by a company that rewards women for being more responsible drivers. The young men will need to wait until they are at least 25 to begin to see their rates decrease, but they can look into the many discounts that car insurance companies have for lowering their rates.

Purchase the Right Vehicle

New drivers will not want to seek to insure a high-performance vehicle because their rates will be high for two reasons. Fast sports cars encourage high car insurance rates and being a new driver will do the same, so new drivers will need a car that is safe as well as economical. A car with safety features, such as traction control that helps people retain control of their vehicles, will be entitled to a discount. If it is a car that is not very expensive to repair, it will also be a vehicle that can be insured for less.

Author bio:

Chris is experienced internet marketer interested in key technologies to make your online business perform. During his career he worked for some of biggest Australian brands. Currently employed as marketing consultant for Real Insurance, leading Australian car insurance company.

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Sanjeeb was born with six toes on each foot. The extra toes were removed before he was a year old, robbing him of any super-powers and ending his crime fighting careers before it even began. Unable to battle the forces of evil, he instead work as a professional in Digital Marketing arena, currently living in Kolkata, India. Founded with the purpose to share his experience and interesting tech news. Connect with him on