Young Drivers Insurance
If you are looking for cheap young drivers insurance then you´ll appreciate that it can be real challenge and that it doesn´t always seem fair that you should be penalised with high insurance fees when you have a good driving track record and are responsible behind the wheel. The reality is that all insurance companies group young drivers together in a high risk bracket and there are only a few ways that you can reduce your car insurance premiums.
Stats show that although 18-24 year olds account for only 9% of the population in the US, they are responsible for over 22% of the fatal accidents on the road. It may feel unfair for the premiums to be so high, but with statistics like that, it is understandable.
So how can you reduce your premiums without reducing your cover?
Consider Limited Usage
Limited usage policies allow you to use your vehicle during limited hours of the day and within certain guidelines such as not having young passengers in your vehicle. The insurance company tracks your car through tracker devices and this allows you to use it for college or work without having to spend a great deal on the insurance payments.
Adding Your Policy onto Your Parents
Another great way to keep your policy payments down is to add your policy onto your parents’ policy. This will of course increase their premiums, but if you pay the difference, it can result in pretty good savings on your part. When you do decide to get your own policy, take a look at taking it out with the same company as your parents as they may even take into account the time you were on your parents’ policy when calculating your own policy payments with regards to no claims discounts.
Using Good Grades for Discounted Policy Payments
Various insurers offer better rates for those looking for young drivers insurance who maintain a required grade point average. This is usually between a 3.2 and a 3.5 or more and can result in a saving of up to 15%. Keeping your kids motivated to keep up their grades or they will have to pay the difference is motivation for many to keep the grades and save big.
Choosing the Right Car
While it´s fun to have a great looking, fast car, affording the premiums means not having money to go out in it anyway. Insurance companies can be pretty tough on high performance cars, so if you want to keep your premiums down, then find a car that has a small cylinder and even consider buying a drab and boring grey or white car as a red car could result in an additional surcharge of up to 10% just because insurance companies believe that red cars are more prone to accidents.
Taking a Drivers Education Course
If you take part in the state licensed drivers education course, many insurance companies will take this into account and reduce the premiums accordingly. Showing them that you have the necessary skills to drive competently not only makes you a better driver, but also a better candidate for young drivers insurance at a lower rate.
Lowering Your Deductable
In the event of an accident, the insurance company will always expect you to pay a percentage out of your own pocket. By lowering your deductable, you will be responsible for paying out a great deal more in cash if an accident occurs. While this may seem like a great way to reduce your payments, you do need to have that money available should an accident occur and that if you have another accident just a short while later, that amount will be required again. This can be a costly decision as it is not always your fault when an accident occurs.
There are a collection of different methods and techniques for reducing your policy payments and many are dependent on the insurance company you choose to insure with. Take the time to investigate a few different companies and get some online quotes before committing yourself as it is always best to stay with one provider in order to benefit from a long term relationship with one company – another great way to save money on young driver insurance.