Wheels Up: Finding the best Insurance for your young driver

Every new year presents an opportunity to review expenses and curb costs. And while some things can be cut entirely from the budget, car insurance isn’t one of them…especially if you have a new or young driver in the household. Unfortunately, those with little or no driving history tend to be riskier to insure, which usually means higher premiums for their first few years on the road.

But the good news is, there are a number of ways you can lessen the budgetary burden of covering the young motorist(s) in your family. Here are just a few things to think about while browsing policies:

Bundle Your Benefits

If you’re carrying a homeowners or renters insurance policy, ask your provider for a car insurance quote. Chances are good that they may offer you a discount for having multiple policies with them.

Pay Upfront

The quote you get from an insurance company usually reflects the cost if you pay the entire premium upfront. However, if you choose to pay as you go, it will cost you more due to a “convenience fee” for smaller installments. Choosing a lump sum outlay may seem burdensome, but depending upon your carrier, you could save anywhere from 5-10% on your policy.

Family Plan

If your young driver lives with you, adding them to your policy might help you to get lower rates since most insurance providers offer multiple-person discounts. But keep in mind that adding a new driver will increase the plan’s overall cost (either prepaid or installment payments), so it’s smart to find ways to offset what will likely be additional premiums.

Car Choices

If your novice driver is also getting a set of wheels, be sure to consider the expense of insurance. In general, the higher the vehicle cost, the higher the premiums. However, some insurance companies also take into account the safety of a vehicle when determining rates. So, a low or mid-range priced car with a good safety rating may be your best bet.

Deeper Discounts

Many insurance companies offer additional savings for new motorists, such as:
Drivers who have completed a defensive driving class and/or maintain a clean driving record
Student drivers who maintain a 3.0 grade point average or higher
Accident forgiveness if you’ve only had a single accident

Take the time to shop wisely and enjoy substantial savings in 2020!