Getting your license is an accomplishment. You’ve been the passenger in cars while your family and friends taxi you around; now it’s time for you to experience the open road on your own. Before you put the keys in the ignition, you have to ensure that you have adequate car insurance on your vehicle.
With most insurance companies basing monthly premiums on risks, your lack of driving experience will likely require you and your parents to pay more for auto insurance. Luckily, there are some things you can do to decrease the cost of your monthly premiums, making your car insurance affordable for both you and your parents.
1. Driver’s Education Courses Help Reduce Car Insurance Costs
Much like the driver’s education course you took to get your driver’s permit, there are other driver’s education courses you can take to gain more hands-on experience. These courses are more in-depth, teaching you how to become a defensive driver. Plus, these courses teach you how to think strategically while you are on the road. By enrolling in a driver’s education course, some insurance companies may give you a discount on your car insurance, allowing you to save money each month.
2. Piggyback on Your Parents’ Insurance
Your parents are experienced drivers. They are well-versed with the potential hazards that are ever-present on the road. As a result, their experience and good driving history may have afforded them the luxury of having a reduced rate for their car insurance. When you piggyback on their car insurance policy, you may notice that your insurance rate is lower because of their good driving history.
3. Avoid Getting a New Car
Although you may want to drive a car that’s shiny and still has the new car smell, it can be costly. When you consider the car payment and the cost of insurance, driving a new car may not fit your budget. However, an older car—a car that’s owned free and clear or has fewer payments—may be the money saver you’ve been longing to drive. Since new cars are at an increased risk of being stolen, insurance companies may charge more to insure them. Instead of putting your money towards larger insurance payments, purchase an older car and go to the movies with your savings.
4. Remain Studious Throughout High School
Earning good grades in school will benefit you now and in the future. One benefit to getting good grades you may not be familiar with is the fact that it can help you lower the cost of your auto insurance. Most insurance companies believe students who get good grades are more responsible drivers. As a result, they may reward these students with insurance for a lower rate.
Simply because you are an inexperienced driver doesn’t mean you have to pay more when it comes to car insurance. When you are aware of the factors that insurance companies consider when rating your insurance, you can effectively reduce the cost of your monthly auto insurance payments.