February 17, 2011

Why New Drivers May Have Trouble Finding Auto Insurance Quotes

New driver auto insurance can be difficult to find because of the lack of a record for the insurance company to base their rates upon. Think of getting auto insurance quotes in the same ilk as getting a credit inquiry for a new credit card or store credit account. If you don't have a history of the same type of activity already then the business will have to base their decision on other things, meaning you have less of a chance of getting the rate you want. To understand this you must understand how auto insurance works.

First, you must understand that auto insurance quotes can be based on many things, but mainly they are based on your driving record in relation to the driving habits of the insurance company's customer base as a whole. Imagine that you are a 16 year-old driver who just got his or her license, so you don't have anything to base what type of driver you will be upon. The insurance company, however, will lump you in with what other 16 year-old drivers have done in their past and this is not good for you.

The record of first-time teenage drivers is not good because of the inexperience and the fact that teenagers have different priorities. So even if you are the most conscientious of 16 year-old drivers you will still be considered a first time driver, which is a major risk to the insurance company.

Now, consider instead of being a new driver getting auto insurance quotes you are a 35 year-old driver that has never been in an accident in almost 20 years on the road. Your auto insurance quotes will be based on your record and the likelihood of other drivers like you that the company has insured. Chances are that the company saves money on these people and wants more of them so they are more likely to give you a good auto insurance quote.

New driver auto insurance is difficult to gauge because nobody knows exactly where the quote will come from or how the auto insurance company might react. In some situations the insurance company may pull a credit report, but in the case of first-time drivers it is rare that a credit history actually exists. In this case, some auto insurance companies will request a copy of the driver's school transcripts. If someone is a good student studies show that they will also be attentive drivers.

There is no doubt that new driver auto insurance can sometimes be difficult, but you must attempt to get auto insurance quotes to see if the company is willing to give you your first break.