June 21, 2010

New Drivers And Older Vehicles And What It Can Mean For Insurance Quotes

When a new driver gets their operator's license, they usually don't own a vehicle. They'll drive the family car (which is usually an older vehicle) or share a friend's car. During this period, they can be added to the current insurance policy for a premium. Eventually they'll buy their own car. At that point, they'll need their own insurance by acquiring auto insurance quotes.

Your insurance company protects you from any liability for injuries or damage you cause to another driver or the occupants of another vehicle. It also repairs your vehicle if you're involved in an accident, but only if you have adequate collision coverage.

If you're a new driver and you buy a new car, your insurance premium will be very high. That's because it will cost the insurance company quite a bit to repair your car to a new condition if you wreck it. Even with a high deductible, you'll find little relief from the steep price of collision insurance for a new, high-priced vehicle. You don't have experience driving, so you'll likely be in a high risk group. Being in the high risk group means you'll pay the highest rate.

There is a very good alternative to an expensive new car, especially if it's your first car. Buy an older vehicle. A used older car will save you money immediately upon purchasing it. Just the difference in sales tax between a $4,000 car and a $20,000 car will pay your car insurance premiums for a long while. If your car is only worth $4,000 dollars, it can't cost more than $4,000 to fix it. Therefore, you won't be asked to pay a huge premium for collision insurance.

If you have mechanic skills, you may want to go even lower and buy a thousand dollar car. If you can keep it running well, there's no shame in a good used car that saves you money. You don't need to carry collision insurance on a car that is only worth one thousand dollars. If your thousand dollar car gets hit, you can pay to have it repaired, repair it yourself, or sell it for parts and buy another one.

You have to earn a reputation as a safe driver to see deep discounts from your insurance company. After a few years with no accidents or traffic violations, your insurance company will lower your rates. Then it might make more sense to buy a nice new car with the money you saved by driving a cheap one for a few years. Auto insurance quotes are surely going to be lower if you want to go with a new company.