You passed the test and got your driver’s license, congratulations! This could very well be the most exciting milestone in your life to date. As a new driver, you may be subject to paying the steepest baseline cost for car insurance you will ever have to pay. There is help, though. By following these five strategic tips, you can cut this cost down as much as possible.
Select a Low-risk Vehicle
If you can already afford it, this isn’t the time to buy your dream luxury or sports car. The high theft rates associated with these vehicles will result in higher insurance premiums. Low-risk vehicles, ones with a good safety record and anti-theft devices will attract lower insurance rates. When you’re out searching for your first car, go for one that is viewed as low-risk to lower your premiums.
Maintain a Clean Driving Record
Be extra safe and cautious while driving. If you receive traffic violations and/or are involved in accidents you will have to pay higher premiums. Alternatively, a clean driving record earns you discounts. Always respect traffic laws, engage in defensive driving, and don’t be risky while behind the steering wheel. You’ll protect your life and others while keeping your insurance rates low.
Take a Driver Education Course
Premium decreases can be offered to drivers who complete approved driver education courses. You’ll be equipped with defensive driving skills to help you avoid accidents and handle difficult road situations, making you less of a risk from our perspective. Plus, a completed approved course will help offset the impact of a ticket or violation.
Consider a Higher Deductible
If you need to make a claim, the deductible is the amount you pay out of pocket before your insurance covers the rest. If you pay a higher deductible you’re likely to have a lower monthly premium. Ensure you can afford the deductible if you plan on paying a higher amount. This is a balancing act between what you can pay upfront versus monthly.
Take Advantage of Discounts
On top of the driver education premium decrease, you may be eligible for additional discounts if you drive low mileage regularly. If you’re under 25 consider driving your parent’s car and join their policy, if possible, to further improve your cost.