Car Insurance Coverage for New Drivers
How Can New Drivers Get the Car Insurance Coverage They Need?
New drivers whether young or old pay the highest rates for car insurance coverage as compared to an equal customer with more driving experience. Statistics show that new drivers have a greatly increased chance of an accident, too, because of unfamiliarity with driving laws, keeping up with signs, and making snap decisions.
Obtaining the best protection against financial loss is imperative for new drivers. How can new drivers get the coverage they need and still keep it affordable? There are four very important steps that guarantee a lower premium with better coverage as long as your claims and driving history remain clear.
Explore the option to be added as a driver on a family member or friend’s policy and offer to pay the difference. You can almost be sure that it will be far cheaper than any first policy you can get on your own.
If you do this for just six months to a year prior to buying your first car, you could save thousands of dollars when you do move to your own insurance policy. Just ensure that your driver status on the other policy remains until your new policy is active.
2.Cut the cost of the most expensive coverage.
In the world of car insurance, physical damage protection is often the most costly, particularly for new drivers.
The two parts of physical damage are Collision and Comprehensive (Comp). If there is a choice in the matter, choose a car that won’t require Collision coverage. You can do this by purchasing a vehicle with cash rather than a loan to avoid physical damage coverage requirements.
Sometimes insurers will allow Comp without Collision. Comp is usually less expensive and protects against things that car owners don’t always have control over like the weather and theft. Check if this option is available and compare the cost both with and without to determine best course of action based on budget and the car’s book value.
If there is no way to avoid a loan and physical damage protection, choose the highest deductibles possible to get you through the first year. As you gain experience and insurance history, you’ll become eligible for lower risk insurance and better rates; you can always decrease your deductibles later.
With the most expensive part of the car insurance for new drivers controlled as much as possible, the next step is to maximize financial protection against lawsuit, injury, and damage.
The first step is to admit is that no one ever intends to get into an accident (other than fraudsters, but that’s another blog for another day). Once that is understood, the next line of thought is how to best protect oneself.
Not an option in most states, liability is required for anyone owning or driving a vehicle. Liability protection includes Bodily Injury (BI) and Property Damage (PD).
These pay out for an at-fault accident to those who are injured or killed. Any number of vehicles and occupants could be involved and various personal property like buildings and other structures.
Each state has their own set minimum they will allow for liability. Start with the highest option available and work your way down to the one that you can afford but try to get more than minimum protection. Keep in mind as you choose that the amount you pick will be the maximum amount the insurer will pay out for you. You’ll be legally responsible for any amount over that.
If there is no way around it and you have to start with the minimum, take the time to check new rates when you get your renewal notice by increasing the limits. Just like with the deductibles, once you get some driving and insurance history under your belt, you can maximize your protection for less.
4.Dip into the Discounts.
Every state, insurance company, and individual has multiple options available for discounts. Make sure you educate yourself on what options are available for you. Some driver discounts may include good student, trained driver, accident prevention course certificate, positive driving history, accident free, affiliated memberships, and others.
Don’t be afraid to ask what’s available and what coverages mean if you are talking to an agent. Usually an online quote will give you the option to search an FAQ or other info to find out and how to add them. Be knowledgeable and don’t settle for simply choosing the cheapest choice without knowing what you have. Sometimes a few adjustments can save you a lot of money and provide you more protection.
-Steven Weinberg is a licensed insurance agent in 46 states and writes at CarInsuranceCalculator.info