Affordable Insurance For New Drivers

When you first get your driver's license, your lack of experience creates more expensive car insurance premiums. Inexperienced drivers are historically more likely to get involved in an accident and file an insurance claim. Because of this, insurance companies charge more for an inexperienced driver's car insurance policy than they do for more experienced operators. Insurance is a business that assesses risk to offer car insurance, and if you pose a bigger risk than someone else, you are charged a higher insurance premium. In addition to your lack of experience, if you apply for your first car insurance policy, you will incur an additional surcharge for not having prior insurance. Even though your first car insurance policy may cost you more than you expect, there are ways to find affordable car insurance no matter what kind of driver you are.

How to Get Auto Insurance for Young Drivers

Teen drivers are especially high risk when it comes to car insurance policies. If you are a teen driver looking for affordable car insurance, it may be best to talk to your parents about being added to their current insurance policy. In doing this, you will typically find your car insurance premium is less than if you were to purchase your own car insurance policy. When you are added to your parents' insurance policy, you benefit from the lower rates they are receiving for being more experienced drivers and discounts they may have, such as multi-car, tenure credits, and possibly a homeownership or bundling discount. If you purchase your own auto insurance policy, you will find your insurance costs are higher because you will be charged for your lack of experience and prior insurance.

How to Save on Car Insurance for New Drivers

Car insurance can be expensive for any new driver, but there are ways to trim back your insurance costs even if you are a new teen driver. Many insurance companies offer all types of discounts to maximize your savings and ensure you get all of the car insurance discounts you are eligible for. These discounts include:

• Good Student Credit: This is a discount awarded to drivers under 25 who are enrolled full-time in school and have a grade point average of 3.0 (B) or higher.

• Driver Training Discount: If you have completed an optional driver training program, you usually qualify for a credit.

• Distant Student Credit: If you are a student and attend a school that is more than 100 miles away from your home and you do not have a car on campus, you can qualify for a distant student credit because you will not have access to a vehicle full-time.

• Tracking Device Credit: Most auto insurance companies offer a discount if you sign up to use their mobile app or install a small device in your car that reads your driving activity and reports back to the insurer.

• Billing Discounts: If you are willing to pay your auto insurance policy in full when you purchase it, or allow the insurance company to directly debit your checking account or charge your credit card for your monthly premiums, there is usually a discount through your car insurance carrier.

• Homeownership Discount: Some car insurance carriers will give you a discount if you own a home.

• Bundling Discount: If you have a home or renter's insurance policy with the same insurance carrier through which you purchase your auto insurance, you will be eligible for a bundling discount, saving you up to 20% on your car insurance premium.

• Veteran Discount: If you are serving or have served in the U.S. military, your car insurer may offer you a discount for your service to your country.

It is important to ask your insurance agent or company about all of the available discounts on your auto insurance policy so that you can ensure that you're getting affordable car insurance without compromising your coverage.