New Driver Car Insurance - Tips To Save Money With Your New Driver
Driving is one of the most dangerous activities that we do. In 2016, more than 37,000 people were killed in car accidents. That's over the whole century! For every mile driven, someone will be involved in an accident - on average once every 1,066 miles. It's no wonder why many people are hesitant to get behind the wheel for fear of how expensive their insurance will be.
With the high number of accidents involving people on their own, and others on the road - the average cost of auto insurance in the United States is around $1,643 annually . This is one of the biggest costs that each household has to take into account. There are ways to save money on your own driver's insurance though.
Elite Auto Insurance , a website dedicated to helping families find affordable coverage, has compiled important information for drivers. Once you know how to get safe driver discounts, and how much you have to pay for coverage - you can really save money when it comes time to buy a policy.
For those who are new drivers, auto insurance can be quite expensive. Many of these drivers are hit with high premiums because they have zero track record for getting insurance, or because they're young. This is when getting a good student discount, or receiving a poor student discount can come into play. Once you become a full-time student - your insurance company will know this, and you may receive a discount on your premium.
The way that this discount works is by the company agreeing to lower the cost of your premium if you're currently in school. In order to qualify, you must be:
A full-time student An active member of an auto club Good grades
In some cases, insurance companies will require that you pass a driving course in order to prove that you can operate a vehicle. If you're interested in getting a student discount - it's important to keep up your grades and maintain good grades.
Students should also be aware of how they can keep their insurance rates as low as possible at this time, without compromising on safety. Often times accidents happen while drivers are not paying attention, which is why you must always be aware of your surroundings when driving.
Insurance companies see the value of keeping safe drivers on their roads - which is why they'll not only give discounts to students, but will offer better coverage to those who can prove that they are more careful when driving.
Another way that insurance companies will help new drivers is by providing them with a provisional license or probationary period (PrPO). This gives new drivers a set amount of time to be behind the wheel without having an accident. The PrPO time is the amount of months that you have to drive without an accident before they can drop your insurance rate. Keep in mind that depending on how long you have your PrPO, and how many people are on your policy - this time limit may be extended.
If an accident happens during this time - insurance companies will raise rates significantly, since these drivers have proven that they cannot handle themselves well on the road. If your family has more than one car registered to you - it's important to make sure that you're covered under their policy as well, so they don't increase premium costs because of any accidents or tickets.
When you get your license, it's best to get a policy, since the average teenager will be sitting in the driver's seat for many years to come. You can also drop your rates by getting more coverage and less limitations on coverage. Many plans will only cover so much - but if you have an accident with another driver on their policy, your auto insurance company should pay to repair or replace everything that you have damaged or lost.
Some of these discounts are only offered in certain states though. If you're thinking about moving into a different city - check out some of the typical car insurance cost differences between big cities and small towns . The average car insurance cost in small towns will be about 25 percent lower than a state like New York or California. Other cities may not offer any discounts or special rates at all, so it's always best to call your local insurance provider and ask for the cheapest rates in your area.
The market is always changing, and as more people compete for a place on the roads - insurance prices will rise even higher to some degree. So if you're interested in saving money on your car insurance, then you should continue to do what you can to remain as safe as possible while driving - that way won't have any accidents on your record, since that can hurt your chances of getting lower coverage costs.
Finding an insurance company that is right for you can also lower your auto insurance costs by a large sum. You can start to save money from day one by looking into how much your current insurance policy will be with other companies. In order to do this effectively, you should receive quotes from at least three or four companies - not just the one that's been in your family since the 60s. Prices change all of the time, and it's important to find out how much these companies are charging new customers.
You should also be prepared to pay a higher premium price, if you're using your credit history as one of your criteria for auto insurance rates. In order to find the best rate - you'll want to make sure that you have a good credit score. If you're not sure of what kind of credit score you have - the following details may help:
Have one or two payment defaults in the past six months Never had more than two accounts opened under your name in the past 12 months Make less than $2,000 monthly payments on all of your accounts (credit cards, student loans, etc. - a total of all combined bill amounts)
These details alone will help you to figure out what kind of credit you have. If you have good credit - then you'll get a lower rate than someone who does not. Insurance companies also look at your payment history as well to determine what kind of applicant they're dealing with. If you have a good payment history, then your auto insurance rate will remain low, or continue to stay low for the life of your plan.
Those who cannot make their credit payments on time may find that they don't qualify for any discounts at all - which is why it's much smarter to keep things under control and know exactly how much money you'll need for your monthly budget.
Conclusion
So now you know how to save money on your auto insurance when you're a new driver - and you'll get the best rate possible while continuing to be safe on the highways.
It's as simple as making careful decisions, keeping up your grades, and not getting into any more trouble than you already have.
It's also important to know what kind of car insurance coverage works best for you, which is why it's always recommended that you find out what your actual coverage needs are - before making an insurance purchase. This way you can decide which plan actually provides the level of coverage that you need for your immediate needs and wants.