Young Driver Car Insurance: What Options Are Available?
Are you a young driver looking for affordable insurance coverage? If so, there are a few tips below that you should follow in order to get the best price possible. Drivers under the age of 25 are assumed to be high-risk drivers and can pay extremely high premiums in some cases. However, the more you reduce the insurance company's perception of your risk, the lower your premium will be.
The quote you receive from the insurance company will depend on two things: the underwriter's assessment of your personal risk factors, and the pricing model used by the insurer to determine the cost of their policies. For example, third-party buyers are sometimes considered to be higher-risk, since it is assumed that they don't care as much about their vehicles.
One way to lower your insurance premiums as a young driver is to fit your car with an alarm or immobilizer. You should also park and drive very carefully so as to prevent theft, accidental damage, and points on your license. All of these things raise the cost of car insurance. Just one speeding conviction can raise your insurance premium, and two can raise it by more than 20%.
Another way to lower your insurance premium is to reduce the mileage you drive annually. It has been anecdotally reported that the best figure to get a quote for is 5,000 miles per year. The miles you drive are especially important if you choose a telematics, or usage-based, policy. These policies charge the driver based on how often they drive, how busy the road is when they drive, and the specifics of their driving behaviors. This type of policy often benefits young drivers as the typical insurance premiums for younger drivers can be very high. Additional driving courses can also help you to lower your rate, especially if the course is aimed at new drivers, but this only applies to a handful of insurers.
You should not automatically assume that third party insurance will be cheaper for younger drivers. Logically, it would seem that third party insurance should be the cheapest since the coverage level isn't as high, but this is not always the case. Sometimes a comprehensive policy that assumes the buyer cares a lot for their vehicle can be less expensive, even for a young driver.
Sometimes is can also help to add a second responsible driver to your insurance policy if you are under the age of 25. You can also try to put your car on a policy with other vehicles, such as your parent's policy, as some insurance providers will offer a discount when you insure multiple vehicles on the same policy.
Finally, make sure you compare quotes from a lot of insurance companies before you make a final decision. Play with the options you select to see what your best combination is. For example, switch from third party coverage to comprehensive and see how the price changes. You can compare quotes by using an online quote comparison tool to find the best price.