Young Drivers: How to Save Hundreds on Insurance Rates

Young Drivers: How to Save Hundreds on Insurance Rates

Posted by on Jan 06, 2020 in Insurance Advice

The costs that young drivers incur for car insurance make it impossible for many to afford a car. This can lead to issues including limiting the areas you can seek jobs. It also interferes with doing the things you enjoy.

If you have found your insurance costs seem to be skyrocketing, there are some tricks you can try to help in getting the best possible rates. Here we offer tips to help young drivers save hundreds of dollars for insurance rates.

Get Insurance Right Away

As soon as you get your driver’s license, take out an insurance policy even if you have a learner’s permit. The sooner you have insurance, the sooner you start to build your history. This works in your favour even if you don’t drive very often and even if you are a secondary driver on your parent’s auto insurance. The longer you drive and show you are accident-free, the lower your premiums will be in the future.

Bundle Your Insurance

Insurance companies reward their loyal customers with better rates when they can. One of the best ways to take advantage of loyalty rates is to have all your insurance with one broker. This would include home or rent, life and any other insurance you might need.

Although many young drivers might feel they don’t need more than auto insurance, if you live away from your parents’ home, you should have renters’ insurance. It protects your belongings in case of burglary or fire and also brings your auto rates down when you get it from the same insurer.

Combine with Parents

Check with your auto insurance company to see if you can combine your auto insurance with your parents. This works in the same way as bundling to help lower costs when all cars are on one policy.

Drive Green

Many insurance companies offer lower rates if you drive a green vehicle, whether it is low gas consumption, a hybrid or electric. The downside of this is that these cars tend to be more expensive.

Buy Winter Tires

Many young drivers try to save themselves money by not purchasing winter tires. Not only is this dangerous, but it’s also costly when it comes to insurance. You will receive a discount if you meet the criteria and also be safer when driving in the winter.

Avoid Cancellation Fees

If you plan to shop around for a new insurance company to save money, keep an eye on the date your policy is going to expire. You should contact your insurer early to discuss renewal or cancellation, or you could face cancellation fees.

You can end your policy early and also take advantage of lower rates with a new insurer offering one-time promotions. As well, many insurance companies will offer a lower rate if they know you might cancel, so you can leverage your loyalty to see better rates.

Discuss Insurance Before You Buy a Car

Many young drivers are unaware that insurance premiums vary based on the type of car you drive. Before you decide to buy that little sports car, speak to your insurance broker to find out how you can save money based on the model of the car you purchase.

They can let you know where you might be charged premiums and where you can save, such as going for a green model. This will also help you save money on your overall purchase as you might see that it makes more sense to buy a less expensive model.

Annual Rates

Speak to your insurance company to see if you can save by paying a lump sum annual rate instead of a small amount each month. Often this works out to be less in the long run. Of course, it also means you will have to pay upfront.

Safe Driving Courses

New drivers without driving experience can benefit from taking a certified safe driving course. By taking the course, you can prove you are capable of driving safely, which can often get you a discount.

Shop Around

This is probably a no brainer for most savvy consumers today. It’s easier than ever to shop around for just about anything online before committing to a purchase. This is true for auto insurance as well. Insurance is highly competitive, and there are many packages and special rates being offered on a day to day basis. Check out all of the offers available and take advantage of the competition.

Although young drivers have more accidents and therefore tend to pay higher rates, you can become a long-time customer of the right insurance company who will repay you for your loyalty over the many years ahead. Loyalty discounts are often aimed at young drivers as they tend to pay more, so they are looking for deals. By shopping around, you will be able to price compare and make sure you find the best coverage for the lowest rates.

As a young driver, insurance companies charge you more as statistics show more accidents occur in your age group. By taking a safe driving course and keeping your driving record clean, you will see your premiums become more and more affordable. The good news is these tips will help keep your rates lower today.

If you would like more information on auto insurance for young drivers, call Oegema Nicholson at 613-224-1455 or contact us here.

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