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Cheap Car Insurance For Young Drivers

Cheap Car Insurance For Young Drivers

When I interviewed agents for three different insurers, one agent from Allstate Insurance, two agents from State farm Insurance, and the other agent from Nationwide Insurance, it was made clear that there is no such thing as cheap car insurance for young drivers. Not, even young women's cheap car insurance. Yes, young ladies have started to be as expensive to insure as young men. The proof was in the rates that were given to me for a male driver at age seventeen. After getting the rates for my son I asked if he had been a girl how much would I be saving. The female State Farm agent laughs and said " not a dime, rate wise, young ladies are just about rated the same as young men now." I asked why did you laugh? She replied," If he was a girl, any saving, if there was any, would soon be eaten up in the fashion stores." They all pointed out that there are ways to reduce the rates for younger drivers.

Keeping Premiums Down: The best way to insure a young driver is to add them to the parent's auto policy. This is the cheapest solution as long as the parents have not had an “at fault accident” in the past year and have been claim free in the past six months. This method of obtaining cheap car insurance for young drivers is valid provided that the parent really drives their cars as the primary driver. You may be able to obtain a cheaper premium by going direct to a comparison site. They all agreed that another way to help to keep the premiums down is to combine your auto insurance and your homeowners insurance with the same company. This will give you a multi policy credit and will help lower the cost. This goes against the policy that you should not insure your two major expenses with the same company. If this insurance company takes too many claims in any one period then your rates on both policies will go up. The other reason is if you take a huge claim on either the homeowner policy or on the auto policy then you run the risk of being cancelled on both policies and possible becoming uninsurable on both home and auto policies. With the cost of insuring the young driver steadily going up, this may be a risk that is worth taking. It was also mentioned that some states now have laws to protect the policyholder from becoming uninsurable in a situation like this.

Discounts: Two of the three companies offer a student course that if taken a discount would be given. This kit consisted of a booklet and a DVD. This was not in place of the driver education that the young persons these days must complete, but was in addition to it. All three gave a discount for good grades, which required a form, which needed to be filled out by the young students high school. One of the agents said, " soon the good student discount will be discontinued." I asked why and I was told that studies are showing that the students getting good grades have as many accidents in the first years of driving as young students with average or poor grades.

Tips: They all agreed that it is expense to insure a young driver that have parents that are on a non-standard policies or high-risk policies. If the young driver has to be put on a policy by themselves, this is the most expensive way to insure them. Some tips given were to insure an older car. If comprehensive and collision coverage needs to be put on the motor, because finance was used to buy the car, then the highest deductible that is affordable should be used. If this is done then it was suggested that the student open a saving account and start saving for payment on the deductible. This seems to be stating that this young driver is definitely going to have an accident. The agent that suggested this stated that that's not really so, but wouldn't it be better to have that deductible in the bank and not have to use it, then to have the young driver have an accident and not have the money to pay the deductible. If it is necessary to have a young driver on a policy of his or her own then it is best to insure them on a car that has no loan and can be insured with just liability coverage. It was suggested that it was a good idea to add uninsured and underinsured coverage to their policy. This will not only insure that any liability that they maybe liable for will be cover but if they are hit by another driver and that driver is at fault then their vehicle will have some means of being repaired or replaced if that driver is uninsured or underinsured. All agreed that the only other coverage that should be added was at least five thousand dollars of medical coverage or as much as can be afforded. It would be best to add ten to twenty thousand dollars worth of medical coverage. This would protect your young driver if medical attention at a hospital were needed. This coverage with most of the major insurance companies pays the bills in a timely manner, no matter whose fault it was.

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