Auto insurance for inexperienced or young drivers

Why do insurance companies fear the worst? The reason is not hard to find. No matter which source you try, all the available national information on traffic accidents shows that inexperienced drivers have the highest accidents rates. When you add in the national data on tickets, younger drivers are also more likely to pick up tickets for speeding - speed is one of the most common contributory factors causing accidents. There are also worrying numbers of young drivers convicted of DUI offenses. Put all the information together and insurance companies class young and inexperienced drivers as more likely to make claims. This justifies higher premiums. What can you do?

Do not assume that the best choice is to have the young and inexperienced driver added to the parent's policy. There are two main reasons for this. Suppose the parents drive an imported, high-powered car and the new driver has a cheap, old car. Most companies will apply the high risk factor to both vehicles, assuming the inexperienced driver may be allowed to drive the expensive-to-repair car. This makes the premium rise significantly. Secondly, the young driver is not building up a separate track record and justifying discounts and renewal bonuses in his or her own right. It will cost the young driver more to insure the first time he or she seeks insurance cover independently of the parents. It can be cheaper in the long term to have separate insurance from the beginning. Get comparative auto insurance quotes to see which strategy represents the best value for money.

If you do a little research, you will find that some insurance companies specialize in policies for the young and inexperienced drivers. By treating such drivers as a separate class, the risk and premiums are spread more fairly. The experienced drivers pay less and the inexperienced are not penalized by the more expensive claims made by those with newer and more expensive vehicles. If you are still in school, the premiums will be lower if the commute distances are short and your grade averages are B or better. Once you have a policy, drive safely and try to avoid picking up tickets. Your renewal premium from the existing or a new company will be significantly lower if you have had a year of driving without a ticket and no claim. Insurance companies reward you for being a good driver. If there are driving courses that will give a credential approved by your insurer, it can save you dollars to take them. When deciding which universities to apply for, look carefully at the premium rates for driving in each location. Some university neighborhoods have higher premiums than others.