The car insurance cost for teen drivers is typically high due to the lack of driving experience. They are said to be high-risk drivers, as they are more likely to be in accidents.
Car insurance for the young can be a costly affair. Teenagers are generally engaged in part-time jobs and make only modest earnings. Moreover, parents shopping for their teen’s insurance could experience some financial burden. Below are a few recommendations to help find cheap car insurance for new drivers under 21.
Selecting the Insurer
There are multiple insurance carriers in the market. It is important to understand the policy features along with their corresponding quotation. By reviewing and comparing multiple options, you become aware of the different policy types and the existing price bracket.
Even a small insurer can help you get a good deal at a competitive rate. Thus, a comparative analysis helps in picking the most competitive insurance provider.
Knowing the Discounts
A young driver can take the benefit of special student discounts. There are insurance companies that also offer discounts to the parents of a student. It is essential to discuss with the insurer about the nature and prerequisites of these special discounts.
Special discounts for a young driver includes good student discounts, distant student discounts, etc. Good student discounts are typically linked to academic performance. A student achieving predetermined grades becomes eligible for the concession. Whereas, a distant student discount depends on the distance traveled. Typically, a student driving 100 miles or more to school or college can ask for the distant discount.
Certified Driving Course
Successful completion of a driver safety program can help you save a portion of your insurance cost. The young driver can attend his lessons in-person or online. The availability of the online model makes the course easily accessible. A few states require the insurance company to offer discounts on successful completion of the certified driving courses. Safe driving courses prepare you to be a safe driver and give you an added benefit of saving around 5% to 20% of your insurance cost.
A Modest Drive
Getting a fancy car is always exciting. Demonstrating the features of a high-end car is quite thrilling. However, it is crucial to understand that your premium also depends on your car model. The repair and replacement cost of a high-end vehicle is much higher, and so is the premium. On the other hand, having a modest car is easier on your insurance budget.
While exploring cheap car insurance for new drivers under 21, it is crucial to understand the extent of the coverage needed. The coverage extends financial support during an unfortunate event. A less expensive vehicle is usually complemented by liability coverage.
Collision and comprehensive coverage are deemed to be a good fit for expensive cars or where another property is also to be covered. Liability coverage is typically less costly. Thus, understanding your coverage requirements will also help in choosing an affordable policy.
Opt for an Annual Periodicity
An insurer generally offers a rebate when the entire premium is paid through a single check. Choosing a monthly mode over an annual mode of payment may cost you a little extra. Buy now, pay later car insurance offers a deferred payment model. However, you may land up spending 5% to 10% more.
Have a Secured Car
A car model with security features, such as airbags, anti-lock brakes, anti-theft devices, etc., vouches for safety measures. Insurers usually offer reasonable pricing for safer car models, as they reduce the probability of accidents and claims.
Having a secured place to park your car like a restricted garage also helps close a competitive deal. Therefore, apart from curbing the potential damages in case of an accident, a car’s security features can fetch reasonable insurance discounts.
Your driving records play a significant role in determining premium rates. Past instances of careless driving, driving under the influence, breaching speed limits, accidents, etc. adversely impact the premium. An irresponsible driving record is charged with a higher premium. It isn’t only about getting a cheaper policy, but reckless driving can cause a human life. The zeal with which a student sits on the driver’s seat should be equally enthusiastic about being a responsible citizen.
You may consider shopping for car insurance online for its ease and convenience. It will be comparatively easier to review policies and choose the most feasible one. Insurers offer concessions for policies purchased online. You may also enjoy paperless processing.
Thus, various options should be explored for enjoying cheap car insurance for new drivers under 21.