Free Financial Today

Often the potential that comes with buying a first car is met with surprise at the cost of the insurance. You are not alone. Young car insurance comes with monthly premiums that will sometimes cost more than the monthly payment on the vehicle!

Before you start shouting unfair, there’s a reason for the price difference. Statistically, young drivers have more accidents than older more seasoned drivers. You may be a very good driver but unfortunately, insurance companies go by statistics.

Young male drivers also pay more in premiums than females the same age. Again, the statistics work against them when it comes to insurance. Studies show that often, young men exhibit more risk taking tendencies than their female counterparts. This type of behavior may be good if you’re on the football field but it’s lethal when you’re behind the wheel guiding a ton of steel at sixty miles an hour.

Car insurance is also more expensive since young drivers have more accidents during extreme weather conditions. Seasoned drivers know how to respond and control their vehicle in rain or snow, but new drivers are much more likely to lose control. This factor also affects insurance rates.

There are still ways to save on your insurance premiums, even though they won’t be a low as an experienced driver. There may be discounts on your policy that will lower rates. If you have completed a driving class, have a family member in the military or have other discounts available through a family’s employer, research the cost. Make sure you ask if discounts are available.

Students that maintain good grades may be able to get a lower rate for young car insurance. Some companies offer a “good student” discount. This doesn’t mean you have to get straight A’s. Generally a B average qualifies you as a good student.

If your parents have insurance with a company, by all means, stay with that company for a multi-car discounted rate. Of course, you still have to be living at home to receive it. If you’re on your own and have other insurance, consider moving the products to one company for a multi-policy discount.

Liability insurance only can be carried on a vehicle that no money is owed on. If you want to save money, look into purchasing an inexpensive car for cash, then getting bare bones insurance. Liability only means that the insurance company will only pay the other driver if you have a wreck – you won’t be able to repair your own vehicle through the insurance company.

The easiest way to save money on your car insurance is to check the rates of several different companies. You’ll find that many of the online sites that offer auto insurance quotes use the policies of several different companies and give you the rates immediately. While you still pay a lot more than a person who’s older, you’ll find that not all companies charge the same amount. Find the best coverage for the lowest amount of money and you may still be able to afford to drive a good car and pay for insurance at the same time.

Looking for a cheap car insurance rate? We also have vintage car insurance for classic car drivers.

categories: young car insurance,car insurance,auto insurance,insurance,car,automotive,vehicle,personal finance