June 12, 2011

Automobile Insurance Tips For Young Drivers

Finding cheap automobile insurance for young drivers can be a daunting task. Statistics show that drivers over the age of 25 are more likely to get involved in car accidents and make insurance claims than experienced drivers. Insurance companies tend to charge higher rates because they need to cover the risks associated with young drivers. Therefore, it is important that you do proper research in order to find a company that is willing to offer the best deal out there.

Although young drivers are required to pay higher car insurance rates, there are as few things one can do to save money on this type of coverage. Comparing three to five automobile insurance quotes is one of the best ways to lower your premiums. Increasingly more insurance carriers are selling policies through their website, offering special deals to those who buy coverage online. Some of them provide huge discounts for being a good driver or keeping the mileage low.

When you compare automobile insurance quotes online, consider both the price and the benefits offered by each company. Make sure you take into account the car you drive. Individuals who own sports vehicles with big engines pay more than those who drive average cars. Insurance rates also depend on the repair cost of a particular model. Your credit card score, income and location may also affect your premiums.

There are many websites that allow young drivers to compare car insurance quotes from several companies within minutes. You only need to offer a few details about yourself and your vehicle. Make sure you read the terms applicable for each policy to understand what exactly what you will be covered for. If you compare automobile insurance quotes from at least three providers, you will see that the price for the same type of coverage can vary drastically from one company to another.

One of the most important things that you should do when searching for cheap car insurance is to ask about the current discounts for young drivers. Most insurers offer discounts for taking approved driving courses and sticking to the speed limit. To save money, find a secure parking location for your vehicle and install safety features such as an anti-theft alarm. Try to build up a no-claims history, pay your car insurance in one lump sum, and join different groups (sororities, fraternities, professional organizations) to get a discount.

In general insurance company offer great deals for young drivers with a GPA over 3.0. Therefore, getting good grades can help you cut costs and save on automobile insurance. Another great way to make savings is to increase your out-of-the-pocket expenses. If you pay a higher deductible, your insurance premium will be lower.