Most insurance companies consider new drivers to be “high risk” customers because these drivers may be inexperienced and more likely to get into an accident. As a result, premiums are typically much higher than the average for new drivers than they are for more seasoned drivers. Teens and those who are purchasing insurance for the first time can expect to pay high premiums regardless of which insurance company they work with, but may still be able to negotiate a lower rate. If you’re a new driver and seeking out a new insurance package, take some time to learn about some discounts you may be eligible for, and be prepared to flex your negotiation skills.
Here are some essential insurance tips for new drivers:
Ask About Student Discounts
If you’re a teen driver or enrolled in college, ask about any student discounts available. Some insurance companies will extend discounts to students who maintain a certain GPA throughout the school year. You’ll need to provide proof with a copy of your report card or transcript, and could qualify for a rate reduction when you maintain a good track record at school.
Choose the Right Type of Vehicle
If you’re still in the process of shopping for a new car, consider how much insurance would cost for that particular vehicle. You can find information about specific makes and models of vehicles online, and will notice that “safe” cars — that are often fairly unglamorous — will command lower insurance rates than sports cars and high-end models. Keep this in mind when purchasing a vehicle so that you aren’t paying an excessive amount for your insurance policy as a new driver.
Disclose All Safety Features
Insurance companies need proof that your car will be less likely to be stolen or vandalized in order to reduce your rate. Make sure to emphasize what types of security features, such as alarm systems, GPS tracking devices and anti-theft devices are installed in your vehicle. This information can help the insurance company recalculate your rate when determining risk for your vehicle.
Fill Out Your Application Accurately
Make sure you disclose exactly what the vehicle will be used for, how many miles you expect to drive over the year, and if you will be sharing the vehicle with anybody else. Your car insurance company will factor mileage and primary purpose into your rate, and you’ll need to be honest about everything on your application in order to get the best deal. If you do end up filing a claim, this information may be reviewed for accuracy. If the insurance company detects any inconsistencies, you could see a rate increase or be denied insurance coverage in the future.
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