Additional Tips on Reducing the Cost of Your Insurance for Inexperienced Drivers
First of all, thank you so much for reading my other article on getting budget insurance for young drivers, the views count has been amazing!
So, to thank you all, here is another guide on more tips on how to reduce the cost of insurance for my readers who are inexperienced drivers.
By the way, hopefully, you have not run over any expensive looking vehicle, if you have, then I am afraid it is a bit too late to read this article.
If you have not and you are sweating while imagining the bill that comes with the mentioned scenario, it is still not too late to read this and the other article if you have not, and start your insurance hunt immediately.
Tips on Reducing Car Insurance
Size does matter
No, I am not referring to clothing nor any dirty stuff you might be thinking of, I am talking about insurance providers.
There has been a misconception that the bigger a company is, the better. While this might be true for other industry, it might not be the case in the car insurance industry.
Many cheap insurance providers are smart, and they do not compete on coverage of their insurance because it is simply impossible for them to do so. Instead, they are competing at lower prices aiming at drivers with a limited budget.
However, please be informed that the insurance you are getting from them is probably going to be a very basic cover, and it is still going to be more expensive than the rate offered to buyers who are experienced drivers.
Though, I am assuming you are not looking for the best and most expensive insurance to safeguard yourself from every worst possible scenario every.
Apart from your driving certificate, there are also many other certificates you can obtain to demonstrate to insurance assessors you have a low risk of car accidents.
Quick note, the certificates I am mentioning here does not include drifting or anything Fast-and-Furious related documents, and if the name of the coach displayed on the certificate just so happens to be Vin Diesel, they will see you out the door within a jiffy.
Alright, enough jokes, remember how I mentioned special conditions to lower insurance cost in the other article?
Well if you do not remember or you have not read that other article, here is a quick recap. There are insurance providers who are willing to lower the fee for you if you are willing to comply with specific conditions, such as black box policy or also known as telematic driving, installation of anti-theft devices and so on.
One of which would be Education and Driving training lessons. Certificate of completion of these classes helps you prove that you are aware of road safety issues and regulation. Thus the possibility of you coming back tomorrow for a claim is lower.
Other than knowledge, it also demonstrates your commitment to become a mature driver, which is also a factor, that an assessor would take into account.
Bundle your insurance policies
Bundling your insurance policies means purchasing multiple types of insurance, such as auto insurance, homeowners insurance, and life insurance, from the same insurance company.
Many insurance companies offer discounts to customers who bundle their policies.
It’s important to compare the costs and coverage of bundled policies with those of individual policies from different companies to make sure you’re getting the best deal.
Leech off your parents
Alright, sorry, maybe the heading was a little bit inappropriate, but I can’t help it. Depending on certain factors, such as your age, your location, current occupation, etc., you might be able to get yourself included within your parent’s insurance policy.
It is not a forever thing, but at least it would help for a while, giving you enough time to save up some money and prepare yourself ahead.
If you feel bad or anything, you could also offer to pay your share for the insurance to help out your parents, which would still be cheaper than getting your insurance.
Increase your deductible
Increasing your deductible is a way to lower your car insurance premium. Your deductible is the amount of money you must pay out of pocket before your insurance coverage kicks in. For example, if you have a $500 deductible and you have an accident that causes $2,000 in damage to your car, you would pay $500 and your insurance company would pay the remaining $1,500.
By increasing your deductible, you can lower your car insurance premium because you are taking on more financial responsibility in the event of an accident. However, you should only increase your deductible to an amount you can afford to pay out of pocket if you do have an accident.
Avoid unnecessary coverage
Avoiding unnecessary coverage is another way to reduce the cost of your car insurance. Unnecessary coverage refers to coverage that you don’t need or that may not be worth the cost.
For example, if you have an older car that isn’t worth much, you may not need comprehensive and collision coverage.
Dropping coverage can save you money, but it’s important to make sure you have adequate coverage to protect yourself and your vehicle. Make sure to speak with your insurance agent to fully understand the potential consequences of dropping certain coverage.
Another reminder, in my other article, I also mentioned that getting a cheap car might help to lower the cost, which I would like to touch on it a little bit more.
Some insurance providers indeed consider the value of the vehicle being insured as the main factor, but some consider otherwise.
To be precise, they believe that, if your vehicle is a newer model of the recent series, it lessens the possibility of car accidents.
Though, be mindful that, by newer models, I do not mean German brand, luxurious series smart car with built A.I. and auto-pilot capacity, if you can afford a car like that, I am not sure what brought your majesty here?
The insurance providers usually would just require the car to be a model that just came out within 3 or 5 years, even if they are second hand. The reason is that the stand quality of new models these days is just that much higher and more durable than the old ones.
Then again, it is best to talk to the consultant on their policy before purchasing a car.
Phew, that was quite a lot to cover for the youngsters, but I assure you it is crucial. There are so many impatient and young drivers who just go for the road to have fun, and later on, regret that decision.
Please do not be those idiots, do the hard work first, it is just a one-time thing for every five years or so, then you can go on a road trip and enjoy the freedom of a new driver with your friends later.
Just remember that do not be hasty and get it done and over with, follow the tips in this article and try to get the best deal you can, a little bit of patience can save you a few bucks per day, and turns into a few thousand dollars in the next few years.
That’s about it on tips for young drivers, a quick reminder, check out my other article if you have not done so, as there are also more tips over there for you to read.