If you have found yourself in the position of shopping around to find cheap car insurance for young drivers, you may be experiencing a bit of sticker shock. It is well known that these policies are quite high, and often cost much more than your own policy. Even though the overall risk of the age group is a major factor in determining rates, and this factor cannot be eliminated, there are several other things that can be done to help find more reasonable or cheaper car insurance packages.
These simple strategies help people to find cheap car insurance for young drivers by bringing to light several possible discounts, as well as by helping to educate shoppers on how to find the best coverage, the best rates, and which carriers are more likely to provide rates that are reasonable for teen drivers.
The first place most teen drivers and their parents turn when looking for insurance is the parent’s current policy. This is usually the easiest way to proceed, and often costs the least amount of money due to “multi-car discounts” that most insurers offer. The result of doing this is lower premiums for the teen because the experience of the parent offsets some of the risks to the insurance company. While this strategy is commonly used, it is not always the cheapest way to go in every case. The cost to ensure the other vehicle(s) listed on the policy may increase as well, thus causing the total cost of the premium to more than double.
In order to decide if this is the best way to proceed, talk to your insurance company and request a free, no obligation quote for adding your teen. Make sure you are aware of your current premium total so that you can compare just how much the new addition will impact your plan. Make sure you look at the total price of the current vehicle(s) listed as well. It is very common that parents only request numbers for a new driver, and overlook increases to the existing information.
The second most common option is to have your new driver purchase his or her own individual plan. This is where you really need to take your time and shop around for cheap car insurance for young drivers.
The first thing you need to do is to narrow down companies that actually cater to young people, with little driving experience. There are companies that do this; you just need to spend some time locating them. This is where you should compare multiple quotes from several different insurers. Why you may ask? Because many parents rush into getting their new driver the same insurance they heard someone else got for their teen. Yet, upon getting the quote, it did not match what the other person received. This is because insurance companies use several different criteria to calculate rates. Factors such as driving record, student grades, and even zip codes can make a big difference in the bottom line. Since even small fluctuations in these areas can mean so much, To find cheap car insurance for young drivers, it should always be done on an individual basis.
You should also get several different quotes at the same time in order to receive a true comparison. Today, the internet makes this process quite easy and fast. There are even sites that do the work for you. All you need to do is answer one set of questions and the site will retrieve different quotes, allowing you to quickly compare the data in order to find cheap car insurance for young drivers.
Do not hesitate to contact your current insurance company or broker to ask for discounts by asking key questions such as: will you lower the rate if the commute to school or work is short? Will you discount the plan if my teen maintains at least a “B” average? Will you lower the rate if the new driver had previous insurance within the last thirty days? You can also look into reducing the rate even more by raising the deductible or eliminating collision coverage if the vehicle to be insured has a low book value.
Cheap car insurance for young drivers is out there. By taking a bit of time to do some homework initially, knowing which questions to ask, and where to look, you can save yourself a great deal of money over the long run.
Read our beginner guide to car insurance for more information