Insurance is likely one of the line items on your budget you scowl at with contempt every month. If you’re a parent, you have probably been dreading the day you need to look for some kind of cheap insurance for new drivers in your home.
Added to the stress of simply having your son or daughter hit the streets, you are faced with an increase in insurance costs. According to NBC News, the “average premium will rise about 80 percent.”
Are you ready to nearly double your current car insurance payments? If your blood pressure just spiked, take a deep breath. Keep reading to find out some things you can do to find a great rate for your new driver.
How to Find Cheap Insurance for New Drivers
We started out suggesting you will be adding your child to your current policy. It’s not a bad idea to take a step back and look at the alternative.
If you put your little Lucy into acting lessons at an early age and she turned out to hit it big, you may consider letting her pay for her own insurance. That’s fine, we would probably consider doing the same.
However, you could still consider putting Lucy on your own insurance and letting her reimburse you. The 80 percent increase mentioned by NBC as the average is only if you have your child join you on your policy.
Otherwise… the increase is closer to 300 percent!
There are a lot of factors that play into that. For instance, if your Lucy is actually a Joe, his insurance will be higher than hers right off the bat. The rate of increase is also affected by where you live.
Now that we’ve looked at probably the easiest thing you can do to get cheap insurance for new drivers, let’s move on to some of the discounts that may be available to you. Not all policies offer them, but they are worth asking about:
- Put your child behind the wheel of the right vehicle. Some insurance companies have prepared lists of vehicles that will save you some money in insurance. Helpful tip: Your Ford Mustang may not be on the list…
- Once you have the right vehicle, consider installing a car alarm. Some companies offer discounts to vehicles with anti-theft devices.
- Wear your proud parent sticker boldly! If your child is the valedictorian of their class, let them know! Insurance companies will often reward a diligent student because it shows an increased level of responsibility.
- Your student may have gone to a private institution for drivers ed, or they may have taken it through the public school. Both routes are fine. But if you enroll your child in extra training – like a defensive driving course – it may save you.
One thing to remember with all of these tips. You need to look for them and ask your agent about them. Remember, this is a business for them. They may not be hiding savings from you, but they may not remember to offer everything that’s available either.
Another way to save on your policy overall is to employ some of these same tactics to your own driving record. In other words, ask if there is a class you could take that would lower your premium.
Most companies will offer a rate reduction if you use your vehicle under a certain number of miles monthly. Say for instance you drive it back and forth to the train station, but then use the train as your main form of commute, that will probably qualify you for more savings.
Again, the point here is you need to ask the questions. There are probably ways you can be saving you’re not currently taking advantage of.
Shop, Compare, and Save
Even if you are planning to add your child to your plan, it’s a good idea to shop around and do some research. Not all plans are the same, some offer incentives and discounts that others don’t.
You may find there is a plan that offers a cheap insurance for new drivers that will also benefit you if you switch providers. Do some comparison shopping, either in person or online, to make sure you find the best deal.
As you may know, an accident where you are found at fault can raise your monthly rates. There are some providers that offer accident forgiveness. This won’t change your legal responsibilities, but it can be a nice relief from a rate hike.
Accident forgiveness sounds great on the surface. It may be something you want to consider adding to your policy. But you have to read the fine print carefully and understand the clauses that are surely built into the offer.
If you are considering a change, make sure you consider quality. Stop by your local body shop and ask them what insurance companies they find easy to work with and they’ve noticed make their customers the happiest.
You may get a funny look at first by doing that… but think about it for a moment. These guys deal with insurance companies daily! And they see the good and bad of customers who realized their coverage isn’t what they thought.
It boils down to quality vs. price. Yes, price shopping is important. But you also need to know that the company can back up the claim in a timely manner and get your money and/or vehicle back on the road quickly.
Write the Check and Hit the Streets
The sad truth about insurance – and this applies to any type of insurance – is the more you add to your policy, the more you will pay. Finding a cheap insurance for new drivers is no different.
The good news about auto insurance specifically is there are now more options for discounts than ever before. The tips outlined above can help steer you to savings you may have overlooked.
Do you still have questions? Contact us today so we can help you find the best policy for your new driver.