Finally getting to drive or owning a car as a young person can be exciting. However, there is a downside to it, which is getting an affordable auto insurance policy. As a young driver, you are more likely to pay more for an auto insurance policy. According to statistics, younger drivers are more expensive to insure as they generally have more auto accidents owing to a lack of experience.
Drivers aged between 20 and 24 are involved in more crashes than any other age group apart from teens. Some studies have shown that younger drivers are less likely to use seatbelts or drive the legal speed limit. Also, they tend to look around more for car insurance. However, there are ways in which you can save on car insurance.
Tips to Save on Car Insurance
If you already have an auto insurance policy, one way you can reduce your insurance costs is to drive safely. The more you crash your vehicle and file claims, the more you will have to pay for insurance. Some insurance companies offer discounts to drivers who agree to attach devices to their vehicles to track how they drive. Though this may seem intrusive, it is a means to show your insurer that you are committed to good driving habits.
Part of safe driving habits includes avoiding the use of mobile devices while driving, having another experienced driver in the car if you are new to driving, and obeying the rules of the road. Keeping a clean driving record can save you hundreds of dollars per year. You are more likely to pay more for full coverage auto insurance after getting a speeding ticket or after a car accident.
2.Ask for Discounts
Insurance companies often offer various types of discounts. Some offer student discounts to young drivers who meet certain qualifications. You can ask your insurer about any available discounts for which you may qualify. Also, many insurance companies will offer discounts or bonuses if you purchase or bundle your insurance from the same company. If you still live with your parents, you can save on auto insurance by staying on the same plan as your parents.
3.Compare Different Plans
Insurers use different factors to determine auto insurance rates, such as gender, location, the type of vehicle, etc. Each insurer uses the factors differently, leading to different insurance rates. To save on auto insurance, it is advisable to compare quotes from different insurance providers before settling for a policy. Comparing different quotes is the best way to find a good rate.
4.Consider Other Types of Insurance
You can consider other non-traditional auto policies, such as pay-per-mile insurance or usage-based coverage. These types of policies may offer better rates than standard or full coverage auto insurance.
5.Build Your Credit
Many insurers use a credit-based insurance score to calculate insurance rates. If you have poor credit, you will pay more per year. To save on car insurance, build your credit by paying bills on time, paying down credit card debt, etc.
These are some of the ways in which you can save on auto insurance for young drivers. To know more about personal and commercial insurance options, contact the experts at Family Financial Insurance Group. We are here to assist you with all your coverage needs!