Sunday, November 13, 2011

Keeping Insurance Premiums Down for Young Drivers

Getting a permit, then later a license, is a momentous occasion for a young person, but it comes with a price. Insuring young drivers is costly, and for good reason. Statistics show that new drivers in the age range of 16 to 24 years are up to three times more likely to be involved in a serious road accident.
Young driver

If you are a parent of a young driver or you are a young driver yourself, finding insurance you can afford can be a challenge. Though you will usually have to pay more than older drivers for the same car insurance coverage, you can take some steps to keep your costs down.

Insurer Approved Driver’s Education

When learning a new skill, having a teacher to guide you is important. This is true for driving just as for any kind of learning. Yes, parents often make great teachers, but taking an approved class has other advantages in addition to helping a new driver learn the skill well. Many insurance companies will offer a lower premium to those who have completed an approved driver training course, for example a Pass Plus course.
Some insurance companies offer their own classes, but there are also independent classes. Before signing up for a class, check with your insurer to find out whether that class will lead to reduced premiums for your car insurance. For example, one Australian insurance company offers a 10% discount on a comprehensive car insurance premium until the driver turns 25 if the driver completes the driver training they offer.

Choose Your Car Wisely

Most young drivers dream of having a cool sports car to zoom around town in. While this may seem like the greatest thing ever to a young driver, it may make their already high car insurance premiums even higher. In general, some makes and models of vehicles are more expensive to insure than others. Fast, sporty cars are often among the most expensive when it comes to car insurance.
My first car was far from sporty. It was a big, four-door sedan. It was about ten years old and not that attractive, but it got me where I needed to go and it was cheaper to insure than a newer, sportier car would have been. A sensible choice of car is ideal for most young drivers because these cars are usually cheaper to buy and to insure.

Compare Car Insurance

When you are getting car insurance on a young driver, take time to shop around. If the first quote you are given seems outrageously high, get another quote. You can compare car insurance quotes online, and end up with several policies and prices to choose from, without ever leaving your home.

Choose the Right Cover

When insuring a young driver, you may be tempted to get the most comprehensive car insurance cover you can find. In some cases, this may be a good idea, but if the young driver is in an older, less valuable car, more basic cover may be sufficient.
You must have Compulsory Third Party Insurance to drive on the road. This only covers injury to people involved in a car accident, so you might also consider adding Third Party Property Insurance to cover damage done to property owned by a third party as well. For many young drivers, that is all the cover they need, and sometimes all they can afford.
For young people, getting a driver’s license is a rite of passage, and it should be an exciting, wonderful time. Comparing car insurance may be the least enjoyable part of the process, but it is an important one. Do what you can to keep your car insurance premiums down, then just focus on staying safe on the road.

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