All About The Benjamins

Insurance companies often have issues with offering auto insurance to young drivers; this is because some have been known for their aggressiveness, unruly driving, drinking and driving habits, speeding and not buckling up when driving. We can now include texting while driving to this list. Most young drivers find auto insurance very expensive due to the “underage” premium they get charged.

With that, here are some ways young drivers can reduce their auto insurance bills.

1. Choose Your Car Carefully

   After the driver, the biggest variable in the cost of auto insurance is the vehicle being insured. If collision and theft insurance are included, the make and model of the car is the single biggest factor affecting your monthly insurance payments. So choose wisely. Yes, that new Mustang convertible will be fun to drive, but do you really want to spend all your money on car insurance every month. Look before you purchase that new car. Do your homework.

2. Take Drivers Education

   Almost all insurance companies will offer a rate reduction if you can provide proof of completing an accredited drivers education course successfully. Even if you have to pay to take the course, it might be worth it. Do the math. Check the cost of the course against the reduction in monthly premiums over the next two years. And, it just might make you a better driver.

3. Higher Deductible

   The easiest way to lower your insurance costs on collision and theft insurance is to increase the deductible on the policy. The deductible is the amount you pay out of your own pocket before the insurance company pays the rest. Increasing the deductible from $250 to $750 will result in significant savings.

4. Add on to Your Family’s Policy

   If possible, add your coverage onto your family’s policy. The additional cost of your insurance will be less than if you had a policy on your own. It just might be worth the slight loss of independence.

5. Build a Good Driving Record

   This will take time, but insurance companies reward good drivers with lower rates. So, when you are driving, consider the consequences of your actions. Speeding not only risks the lives of you and your passengers, as well as others, but a speeding ticket will increase your auto insurance rates. All good reasons to slow down.

6. Shop Around

   Its always good advice to comparison shop when looking for insurance. Do your homework and make sure that you understand the total cost of the insurance package you select. Also, understand what is covered, what is not, and how big of a deductible there is that have to pay first before any claim is paid. All these factors go into determining the total cost of insurance.

7. Driving Without Insurance Is Not an Option

   Not only is driving without insurance not an option, its a crime in most states. Get caught or get into an accident without insurance, and your life is going to change for the worse. Don’t do it. If you can’t afford to drive with insurance, don’t drive.

Insurance Auto Insurance, Car Insurance, Insurance Rates, Young Driver