New drivers need car insurance not only because it’s the law, it protects you financially if you are in an accident. It’s crucial to have good coverage so you’re not left paying for damages out of your pocket.
While it can create a significant case of sticker shock, insurance is a necessary evil in the costs of owning and driving a car. For new drivers especially, the cost of car insurance can be pretty darn high.
But there are ways to lower the cost and get more affordable rates. Keep reading for 7 tips on getting cheap auto insurance as a new driver.
Tips and Tricks for Reducing Insurance Costs
#1 – Research and Compare
First and foremost, do your research. There are many different providers, and each has its advantages and disadvantages. The only way to determine which provider is right for you and your needs is by researching. You can use online comparison tools or look at insurance companies that your friends and family recommend.
#2 – Hop on to a Relative’s Policy
Try to get on your parents’ or another family member’s insurance plan, if possible. Chances are, they’re already getting a hefty discount just for being long-time customers.
And if you bundle your insurance with theirs, you’ll get an even more significant discount. If you no longer qualify for your parent’s insurance as a dependent, you can be added to a roommate or partner’s policy as an additional driver and still get those discounts.
#3 – Consider a Per-Kilometre Insurance
Per-km car insurance is a new type of policy gaining popularity, especially among uni students. The basic premise of per-km insurance is that you are only charged for the kms you drive. This can be an excellent option for students who are not driving as often as commuters, such as only driving to and from your home when you visit your family.
There are several benefits to choosing a per-km insurance policy. It can be more affordable than traditional policies, encouraging people to drive less, and reducing pollution and traffic congestion. Additionally, it teaches young drivers how to budget their expenses and make responsible transportation decisions.
#4 – Consider an Excess or Raised Deductible
Another way to save on car insurance is to consider raised deductibles, or excesses. A higher excess means you’ll have to pay more money out of pocket in the event of an accident, but it also means lower premiums each month. So if you’re a safe driver who doesn’t mind paying a bit more in the event of an accident, this could be an excellent option for you.
#5 – Defensive Driving Courses and Safe Driver Discounts
Most insurers offer discounts for driver education or defensive driving courses. Additionally, the longer you go without an incident or traffic violation, the lower your rates will become. It’s worth the upfront cost for the class to save hundreds over time.
#6 – Ask About Other Discounts
Often, insurers have a list of discounts you can take advantage of if you only ask. They’re not widely advertised, but they are usually available.
Ask about military dependent discounts and good student discounts, and ask if being involved in any clubs or activities has earned you a lower rate. Some insurance companies honor graduates of specific schools, programs, or clubs (such as Boy Scouts or Girl Scouts).
#7 – Never Let Your Insurance Lapse
Never let your car insurance lapse! If you do, not only will you have to pay more to reinstate your policy, but you’ll also be considered a high-risk driver, which will lead to even higher rates down the road. So as long as you can keep up with your payments, staying insured is always worth it in the long run.
In some states, lapsing your insurance can result in license suspension, getting your car impounded, or monetary fees to the municipal authorities that you park your car in.
Hit the Road with Confidence
If you’re a new driver, car insurance can seem costly and complicated. But with a bit of research and planning, there are ways to make it more affordable. Consider comparing providers, getting on your parent’s policy if possible, and opting for a per-km insurance policy.
You can also save money by raising your excess and taking defensive driving courses. And be sure never to let your policy lapse—the consequences could be costly. In the end, with a little effort, you will find the car insurance that fits your budget.
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