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First of all, I would like to say congratulations on getting your license. You have just stepped into the world of another responsibility. Most people, especially teenagers, would see this as a freedom they have been waiting for up until this point. Unfortunately, this is not how the insurance companies view you. You are excited because you have now become mobile! The insurance company sees this as a liability waiting to happen. This is why new drivers, young and old, have a higher premium than more experienced drivers. If you are not a teenager, rest assured, you will see a less expensive premium than a teenager, just for being older. Seems unfair teenagers would say. Not so much; the insurer views an older driver that might have just as much experience as a new teenager driver less of a risk. This is due to life experience and knowing how to react and respond to a situation better. In other words, they are more mature and know what responsibility is.
If you are reading this and you are a teenager, please do not be offended, this is just the harsh realities of the insurance world. They take a risk on you, and they make sure they are as calculated as possible. In turn, this increases your premium.
So how can I Lower my Premium?
There as indeed ways you can lower your premium. If you are a teenager you can:
1. Take Driver Education in School. Most schools offer this as a course in the daily curriculum. If Drivers Ed is not available at your school, you can take a drivers class at your local Division of Motor Vehicles (DMV), or you can take a course online. There are many sites to choose from online, just make sure the site you choose is accredited.
2. Keep your grades up! Yes, good grades do pay off. And you were thinking your grades were just to get into a good college. Insurance companies do not have much to gauge your creditworthiness by, or how responsible you are. Getting good grades and maintaining them shows them some good points. A student that has good grades is typically going to be more responsible than a teenager that lets their grades slip. Although this is not always the case, this is what the insurance company sees.
3. Pick a safe, non sporty car. If you are looking to save some big bucks on your car insurance, you want to go with a car that is not sporty in appearance. If they see a sports car, they hike up the premium because sporty cars are associated with speeding, therefore, a higher risk. Also, SUV's and trucks are also considered a higher risk vehicle because they are prone to roll over and flip. These types of vehicles are typically reserved for the more experience driver because of size and handling.
4. Stay one your parent's policy. They have established driving records. It is typically less expensive than your own policy.
If you are not a teenager, you already have your age going for you. Here are some other measures you can take to lower car insurance.
1. Take a driving course. As discussed earlier for teenagers, you too can take a driving course to get a discount on your policy premium.
2. Insure with one company. If you won a home and currently have homeowners insurance, see if your insurer also covers automobiles. You can often get more of a discount when insuring multiple items with a company.
3. Get a car with many safety features. If you are in the market for a car, make sure you ask about safety features. Not only will it offer you ultimate safety when in a wreck, you get discounts for additional safety features outside the standard ones required by law.
Insurance Companies are reluctant to provide low cost insurance for individuals such as teens and new drivers because of their inexperience. There is the old argument of, well how are they ever going to get the experience, if they can afford the Insurance, in order for them to be able to drive. Most often, the blame for the high insurance rates regarding this age group is blamed on the Insurance Companies. It is true that Insurance has high costs right across the board. It must be remembered that Insurance is a business; it is not a regulated government agency. So naturally when you are in business its because you plan to make money. The Insurance Companies are going to make sure the odds are in their favor when it comes to determining whom they will insure and those they won't.
Often people will look back and say well it was not like that when I was growing up. A lot of that has to do with the change in driving conditions from back then to now. There was not near as much traffic to begin with. There were many super highways that one could virtually fly down. Many of the vehicles being manufactured today are virtually speed machines. For a time there, it seemed to be a challenge to see which car manufacturer could come out with the fastest cars. Naturally, when our teens see this type of endeavor they are going to follow the trend. This seems to be something that is not quite so prevalent now as it has been in the last few years.
To get to the point where there will be reasonable teenager/new drivers insurance will mean an change in attitude, for example on the teenagers part. This is not meant to insult the teenager; on the contrary, they cannot be expected to be experienced in the many facets of life when they have not even begun to live it yet. That is the very point of the Insurance Companies. They feel that during the teen years they are just not ready to accept the responsibility that goes with driving and owning a vehicle. Unfortunately, the traffic statistics support this belief.
Some teenagers are perfectly matured and responsible at a very young age, and are excellent drivers. No matter how mature you are, the second part of the problem is no experience. Now the Insurance Companies are not saying that they absolutely will not insure young drivers or new drivers. Many of the Companies will try to offer good rates. It is still a competitive business; so one Company is going to try to do better than the other company.
It is unfortunate for the new driver to be placed in this category. After all he is probably in his early 20's and has matured quite nicely, however, the problem here is no experience. In all likeliness he was not, able to afford the teen Insurance rates and has had to hold off and is still in the same predicament.their quotes. Now you need to go and review this much more closely.