oday we’re talking about car insurance new drivers as part of ongoing insurance tips and tricks. We get this question quite often and it’s never really fun to talk about because insured car insurance new drivers are really difficult. I think most of this has to do with the fact that most new drivers are teenagers who have never really been known for being responsible or level-headed from an insurance company’s point of view.
It’s also really difficult because motor vehicles are leading cause of death people ages 4 through 34, which is a pretty big range. The reason that new drivers are so hard to get insurance for though is that there’s no driving record because they’ve never driven before. There’s no credit history because usually, they’re minors, they’re under 18 and of course because they’ve never driven before there’s no previous insurance coverage. So they can’t look at what their claims history is like or anything like that. So, the end result of this is that premiums are a good deal higher.
We’ll get right to it. The cheapest option if you’re looking for insurance or new driver is, you’re going to want to put them on an existing policy. If you’re a parent this would mean that you put your own child on your policy. We suggest that even if you want your child to be financially responsible in their own way it’s generally better to have them added to your own policy because it’s cheaper and then just have them pay you directly rather than paying the insurance company.
Now, the warning is it will be expensive, in some cases it may double. Don’t let the freak you out, here’s why it might. It depends on many factors like your driving record, so if you are a good driver typically adding a new driver will make that cheaper. It also depends on the type of car that you give to the new driver. Obviously, a Ferrari versus a Volvo station wagon will be priced differently. At all spends where you live in urban areas being priced higher than rural ones and it also depends on the gender of the new driver, what with men being statistically riskier than women. So why will your prices go up so much? The unfortunate part of it is statistics.
New drivers not so very good at driving. According to the Insurance Institute for Highway Safety, in the first six months, a new driver is 8 times more likely to be involved in a fatal crash. The average driver that declines pretty quickly but even in the first year rounding out the first year there’s still two or three times more likely to be involved in the fatal crash. This risk lessens over time but according to the National Highway Transportation Safety Administration, a new driver who has had an accent is still 50% more likely to have another one, so from an insurance perspective, this gets really expensive. It will get cheaper over time once you get out of the first year, most insurers have a surcharge that they charge the people who have been licensed for less than years well at least once you get that first year should be cheaper. Then as you start looking at if you’re going by average ages you’re moving from 16 to 18 you can expect prices of about 10% lower. The important parts of how to lower this is.
1. Type Of Car
So obviously the first part of it and I would argue the largest part of it is the type of car. I made a flippant remark earlier about a Ferrari versus a Volvo station wagon. But this is actually pretty apt because what you’re going to look for is something that’s boring, safe, low horsepower, and lots of doors. You’ll want to remember though that, just because a car is cheap does not mean that it’s cheap to insure. This is because insurance companies take a lot of factors into account and two cars may cost the same, but they might have drastically different repair costs, maintenance costs, or safety records. The easiest thing to do is to either ask your insurance agent which will let you try different options for a car swap them in and out and you’ll get a better idea of what’s a good car to insure.
2. Good Student
I can say that almost every insurance company offers a discount to full-time students if you’re a good student. This is sometimes it’s 5 to 10%, which can add up to several hundred dollars a year. You generally need to have a B+ average. But if you can do that, by all means, do it.
3. Drive Safe
The third part, kind of goes without saying, you need to drive safely as a new driver. Having an accident or ticket gets very expensive very quickly especially for new drivers because it does set a precedent for the rest of your driving career. If you will even just one ticket could increase your premiums by 60% and when you start looking at how it’ll take three years for that ticket to drop off of your record, and then you could pay a thousand dollars or more for that ticket before it’s all said and done. So drive safe, obviously if you can.
4. Driving Courses
Most people really familiar with driver’s education purely. You got to take it you to go driver’s education, so didn’t go on your record but you can also take them voluntarily. There is a number that is catered specifically towards teenagers or new drivers. We’ve seen is especially in California, there’s the most popular is called teen smart. But if you already have car insurance, you can follow up with the insurer and they generally support at least one program that you can go through and then to educate your teen. That sometimes drops their premiums about 10% a year, which is about seven several hundred dollars.
So those are the four tips to cheaper your insurance car. Choose the right car, be a good student, drive safe, take driving courses, and that’s about the best you can do and over time as you start reaching kind of the mid-20s. You’ll no longer be penalized for being a newly licensed driver. If you’re more curious about either adding a new driver or teenager to your policy and how it will affect your insurance rates, you should check out or call your insurance agent. So many sites or companies out there which provides the auto insurance comparison tool, that allow you swap in new drivers, new cars, change existing cars, and all sorts of things. It’ll give you guidance from the top insurers in the USA. Basically, it allows you to make the best possible decision for your new driver’s license. Best of luck and safe driving.