Car insurance policies for new drivers are typically much more expensive than the average because insurance providers consider new drivers to be “high risk.” Statistics show that many new and young drivers make insurance claims more often than those who have been driving for several years. Still, there are some ways to ensure you get the lowest possible rate as a new driver.
Here are some essential insurance tips every new driver needs to know:
1. Shop around. Don’t be afraid to shop around and compare quotes from at least three to four insurance companies as a new driver. Car insurance providers are competing for your business and may drop rates just to win your business for the long-term. Let each company know that you are shopping around for the best rates, without disclosing the actual quote. Ask them what extended services they can provide, and why you should pick them over another insurance provider.
2. Choose the right car. If you are about to buy a new or used car, find out how much it costs, on average, to insure the vehicle. Most car insurance companies can give you a quote or range right over the phone. Choosing a fuel-efficient car over a sports car, for example, could mean a much lower rate for you – especially as a new driver.
3. Disclose how much you are going to drive the car. If you are a young driver and will only be using the car on weekends or to drive a short distance to school, make sure the car insurance provider knows how much you are planning the vehicle. Most companies will reduce your rate if they find out you are only driving the car a few miles per week versus a long commute each day. Be as honest and accurate as possible when disclosing how often you are going to drive the car, and for what purpose.
4. Complete a defensive driving course. Showing proof of completion of a defensive driving course may help you get a lower premium. When you can prove that you are a safer driver, car insurance companies will be more likely to offer you an attractive rate – even as a new driver.
5. Stick with your parent’s insurance policy. If you are a new, young driver and still live with your parents, you will probably get a lower car insurance rate as a new driver on their policy. A family policy may be a better option for you until you are older, or when you start to live on your own. Ask about the discounts available for a multiple car insurance policy or family insurance policy and you might be able to secure a lower rate than if you applied for insurance on your own.