The problem
When it comes to car insurance being a young driver can feel like everyone's against you. High prices for anyone over 25, particularly if you're male, make it tough to start driving just when you need a little help and trust. But why? Really it's all a matter of statistics.
Car insurers are concerned with only one thing - how likely are you to make an insurance claim? That's what their profits are based on, taking in more insurance payments than they have to pay out. Statistics prove that young male drivers under 25 are more likely to have all kinds of accidents. They're less experienced, overconfident in dangerous situations and have a less developed sense of danger generally. Teenage drivers are involved in a greater number of accidents than all the other driver age groups combined.
But this isn't fair right, why should a responsible young driver pay for the recklessness of others? The good news is that insurers rely on more detailed statistics than the raw age group number. We've outlined a few tips that can help you below.
What you can do to reduce your insurance costs as a young driver.
Driving Education Many insurers will now recognize your efforts if you take courses in defensive driving. Successfully completing a course and proving that you take the dangers of the road and the development of your skills seriously will be rewarded by lower insurance rates. Your Car The more expensive and powerful your car the higher the repair bills and the more likely you are to have a crash. If you choose a smaller inexpensive and lower power car your insurance will reflect this. Certain cars are associated with low risk drivers, drivers who don't covet speed and prestige over safety and practicality, and you can take advantage of this. Car Safety A car equipped with better safety features will aso attract lower insurance costs for young drivers. When choosing a car pay special attention to these, they have lower insurance costs for a reason, because they stop you having accidents. Not only can they lower your costs, they can save your life! Don't Pimp Your Car Insurers aren't impressed by car modifications, and they know that modified cars are more likely to be involved in accidents and cost them money. Modifications that increase a car's power are particularly frowned on as they are a lot more dangerous. If you want to get the lowest insurance cost as a young driver, leave your car the way it was manufactured!>/li> Use Your Parents Policy If you can persuade mum & dad you can get your parents to put you on their car insurance policy. This isn't easy though, you have to live with them and the car has to be registered in their names. Not everyone can take advantage of this, but if you're in the right situation as a young driver it makes sense to try. Study Hard Some insurance companies now give young drivers who do well in school and college lower insurance costs. This is not a social scheme to encourage good grades, it's because students who study hard are usually better drivers too. If you're considering skipping some homework, just remember you could end up paying for it, literally! Only Drive When Necessary This can be a difficult tip, you just got your driving license so you can drive where you want to right? Unfortunately how far you drive is directly linked with how much you'll pay in insurance. If you live in an urban area try to take advantage of the well developed public transport systems. Over time if you drive well and avoid accidents you'll develop trust with the insurance companies which will be rewarded with lower costs. Compare, compare, compare! This one's easy, get as many quotes as you can and compare them to get the best deal. You can use insurance comparison websites to get the best deal, but don't forget some insurance companies don't allow themselves to be listed, so make sure you check them out as well. Check for discounts Any individual insurer may offer discounted rates for certain types of young driver. Make sure you keep this in mind when checking insurers, you could be missing out on a great deal. Tie the knot OK, this one isn't for everyone, but if you think you're ready getting married will really help your insurance costs. Insurance companies know that married drivers are a lot more careful. This even applies to young drivers, but as marriage is getting rarer and rarer amongst the young, it won't apply to that many.
If you follow as many of these tips as you can you'll soon be on the way to more affordable car insurance as a young driver. Good luck!
Bill Stevens writes on personal finance related issues. Learn more by visiting my blog at Your personal finance guide [http://www.yourpersonalfinanceguide.com]
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