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Car Insurance For New Drivers

In today’s world, people usually acquire their driver’s license during their teen years. A small number of individuals wait until their 20s or even their 30s due to one reason or another. Auto insurance companies don’t make a huge distinction between these two types of drivers; both groups are simply considered new drivers. Typically, this segment of drivers will find that their car insurance costs a lot of money.

Explaining the Higher Costs for New Drivers

New drivers of any age are far more likely to experience an accident than experienced drivers. Hundreds of studies have drawn this conclusion time after time. Before completely adjusting to driving alone, a new driver tends to misjudge themselves or their vehicles. For instance, failure to brake quickly enough could result in an automobile accident. Insurance providers must protect themselves from paying billions of dollars for all of these incidents.

Auto Insurance Companies are For-Profit Businesses

These private companies are designed to turn a profit after all. To succeed on this front, car insurance companies charge newer drivers more money for their premiums. More accidents and claims equates to more money lost for these companies. This explains why more experienced drivers pay less for coverage; they are far less likely to cause an accident. From a financial standpoint, more costly premiums for new motorists makes complete sense.

Is coverage different for new and experienced drivers?

Fortunately, cost is the only thing that separates new motorists and experienced drivers when it comes to coverage. Teen drivers can still acquire the same policy as their parents. A driver of any tenure doesn’t need to worry about lacking coverage for a certain event as long as they pay their premiums. With that in mind, most new drivers concern themselves with reducing their costs for such coverage.

Reducing Car Insurance Costs for New Drivers: How To

An overwhelming majority of car insurance providers offer discounts for policyholders. Luckily, new drivers can still qualify for many of these discounts without a hassle. Many offers can be combined in order to increase the annual savings greatly. Each company sets its own requirements and limitations when it comes to these discounts. Therefore, a discount at one provider might not carry over to another one, and policyholders must keep that in mind.

New drivers especially should take a state-certified defensive driving course. In most cases, insurance providers offer savings around ten percent of the policy for completing these courses. On the other hand, college students with a great academic record can receive further savings for sending in their transcripts. Other discounts kick in automatically after a person has driven without an accident for certain periods of time. Savings are available through plenty of programs with the average provider.

Trying Out Smaller Providers For Bigger Savings

Then again, new drivers hold one other option at their disposal for reducing their insurance costs. An individual should always consider using a smaller insurance provider rather than a national one. Small car insurance providers tend to offer better rates on coverage and more discounts. Unfortunately, this doesn’t always stand true in every case, but it’s worth giving a shot. Drivers should never limit their opportunities when it comes to purchasing auto insurance.

When does a new driver become a regular driver? 

In the eyes of insurance providers, new drivers are those motorists with less than three years on the road. Policy premiums tend to decrease after a person hits that three-year mark of driving without any accidents. Other decreases in premiums might occur at five and seven years, too. As with the discounts, providers control when they consider a driver no longer “new”. Basically, the longer a person drives without an accident, the lower they will see their premiums drop. Changes don’t usually come every single year though.

Car insurance for new drivers gives plenty of people splitting headaches these days. Nobody can escape paying higher premiums if they recently obtained their license for the first time. Likely, most providers offer new drivers various opportunities to lower their expenses. The best solution for this issue is to take advantage of these savings and simply drive without any accidents or traffic citations. Premiums will start to drop when drivers show their car insurance providers they are reliable. Until that point, new drivers will always have to pay more annually on insurance coverage.