If you are a young driver, just starting out on the road, the cost of insurance can be daunting. Younger drivers are more expensive to insure, as you don’t have the experience that adults have. Statistically, young drivers are in more accidents and get more traffic tickets than adult drivers, hence the high cost of insurance. Young drivers can help lower their insurance costs just by doing a few simple things.
Many insurance companies give discounts to student drivers for good grades. This discount usually only applies to grades of “A.” Your insurance rates will go back up if any of your grades drop to a “B” or below, so make sure you study hard, turn in all of your assignments on time and do well on exams.
Some extra-curricular activities can earn you a discount on your car insurance. Speak with your insurance agent to discover what these activities are, and if you are eligible for a discount based on your affiliation.
Most insurance companies offer a discount if you are insured under your parent or guardian’s automobile policy. They may receive a discount for clubs or organizations they are affiliated with, or because of their employment. Check into this when you are pricing insurance for the first time.
Paying on Time, Every Time
If you are employed and pay for your own insurance, keep steady employment and make your payments on time. A late payment can result in dropped insurance coverage, which can be devastating if you have an accident while you are uninsured. This can result in higher insurance premiums and even the need for high-risk insurance, which comes at a high cost. Make sure your premiums are paid on time or even early to ensure you stay covered.
This goes without saying, but it is always a good idea to repeat it. Drive safely! Don’t talk or text while you are behind the wheel. Be aware of all the laws of your state that pertain to driving, follow all of the rules of the road, and watch out for other drivers. Don’t give in to peer pressure if your friends ride with you. Some states prohibit teen drivers from transporting passengers for a certain amount of time or until they reach a certain age, so if yours is one of these states, be sure to stay within the law.
There are several things you can do to lower your insurance costs, but the most important thing is to play it safe every time you are in a vehicle, whether you are the driver or a passenger.