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Young Drivers Cheap Car Insurance - A Young Drivers Guide to Cheap Car Insurance

driving liability lower company

Insurance companies are of two minds in regards to young drivers. On the one hand, they are a clear insurance risk—sixteen year-olds get in six times as many accidents as adults. Yet, insurance companies also recognize that new, young adult drivers represent their greatest source of new clients, which means that there are deals in place which can help young drivers to get cheap insurance.

The first variable which affects insurance is the safety, price, and maturity of the car being driven. America’s National Highway Traffic Safety Administration, or NHTSA, tests every car on the market. The nicer the car, the more expensive it will be for the company to fix. That’s why even the safest expensive car costs more to insure than less expensive models. Conversely, family-oriented cars are also cheaper to insure.

Most providers will offer young drivers cheap insurance by putting them on a family plan. In this deal, an insurance company solidifies its relationship with an existing client while taking a risk on the client’s driving ability. This is not universal, however; other factors weigh heavily on just how much a family can save by taking this route.

Driving records also impact the value of car insurance. Moving violations, drunk driving, and accidents all contribute to making a driver seem like more of a risk, and young drivers with no record of previous driving will pay significantly more for their insurance after just one driving incident.

There are a few other ways for young drivers to lower the costs of their insurance. A 3.0 GPA gives young drivers cheap insurance through “good student” discounts, which can cut as much as 10% off an existing insurance bill. Length of ownership is another factor, and rates can be affected after just one or two years—thus, drivers who get their first car at sixteen can lower their costs throughout high school simply by keeping the same vehicle.

Knowledge of these factors allows young drivers to negotiate for the best rates with their insurance companies.

When inspecting your insurance offers, look for a low premium. A premium is the total cost for an insurance option. Premiums vary by location as well as car type and package options, and it is only by comparing individual quotes that a good premium can be found.

The other important factor in a car insurance option is its deductible. A deductible is the amount the insurance holder must pay if there is an incident with a vehicle. If, for example, a driver has a $400 deductible and gets in a $900 accident, the insurance company will pay $500.

The cheapest form of car insurance is called liability. Liability car insurance provides the bare minimum protection required by law. In addition to satisfying U.S. driving law, liability protects the holder against law suits and pays for damage caused to people in your car and other people’s property. Ideal for drivers of cheap vehicles which would be cheaper to replace than repair, liability protects drivers from the crippling costs of major injuries and car wrecks in which the driver is at fault.

Young drivers can find car insurance with fairly low premiums provided that they have a clean driving record and a safe and/or inexpensive vehicle. A few other factors like education and ownership can also lower these rates.

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