How to Reduce Auto Insurance Rates for New or Young Drivers

When you are a new driver or you are looking for ways to help cut back on the expense of adding a teen driver to your auto insurance policy, it is important to recognize methods of obtaining the best rates. Since new drivers have a higher risk of accidents, coverage for a car is usually a little pricey. Fortunately, it is possible to reduce the rates with the right combination of comparison shopping and available discounts.

Compare Options

Lowering the cost of your insurance will require comparison shopping. Compare quotes online on this website to research rates from several companies and to find affordable options that provide the coverage that you want for your vehicle.

Comparison shopping is the easiest way to narrow down your choices. Do not assume that the initial price is set in stone. It is only an estimate based on the information that you provided. Some companies may offer discounts that you can apply to your account, which further reduce the cost.

Ask About Good Student Discounts

Although the discounts that a company offers will vary, you may be able to obtain a good student discount if you maintain good grades in school. The exact requirements will differ between companies, so do not assume that it automatically applies to your coverage. While most companies will require a B average, or a 3.0 GPA, other companies may set a higher standard.

Ask your local agent about qualification standards and clauses when you are discussing good student discounts. You will need to prove that you have the required grades before the discount is applied to your account.

Drive a Safe Vehicle

The type of car you drive plays a significant role in the cost of your policy. A vehicle that has more standard safety features and is not expensive to repair will cost less than the car that has fewer safety features or has a very expensive repair price when it is damaged. Avoid luxury vehicles, expensive sport cars or similar models to get the best rate.

Increase the Deductible

Although a higher deductible means that you will pay more out of pocket if you get into an accident, it can save you when it comes to monthly expenses. The exact savings will vary based on the company and the options the company allows, so take time to ask about the differences in monthly costs for different deductible amounts.

Don't pay more to cover your vehicle. By comparison shopping, asking about discounts and working with a local agent, you can lower your monthly expense and see better quotes. Teen and young drivers do not need to pay excessive amounts to protect the vehicle and other drivers. It is possible to get a reasonable rate by taking a few extra steps to lower the monthly expense.