Auto Insurance Tips for new Drivers

New drivers are wise to learn about auto insurance premiums before they select a car. Making decisions about obtaining the best insurance while saving money is a worthy goal, but it’s not all about saving money. An important tip about auto insurance is to have adequate insurance to cover other cars if you’re found to be at fault in an accident.

What will you have to pay for your auto insurance? The premium is based on many factors such as how much and what kind of coverage you have, the amount of the deductible, your age, your driving record and whether you combine insurance with your home or family.

Insurance policies also consider the theft and safety stats on your vehicle, your residence, and accident and theft statistics of your area. If you live in a high-risk area, your premium will reflect it. Premiums are also is affected by how many miles you drive; the less you drive, the lower your rates.

How much coverage do you need? You must consider the expense of repairing your car and other cars that may be involved in an accident where you are deemed to be at fault. Car prices have gone up substantially in the past few years, and if you happen to hit two expensive cars, it could wipe out your coverage leaving you to pay the excess amount.

Many states require you to have liability insurance as a minimum, and some require uninsured and underinsured insurance. Medical payment insurance might also be required. For this reason, it is advisable to have a real live person such as an insurance agent to talk to in order to find the policy that meets the basic state requirements and coverage.

How to obtain lower premiums:

*Students with good grades can often find lower premiums.
*Higher deductibles will lower premiums
*Eliminate or reduce coverage you don’t need.
*Buy a car with statistics for safety and low theft.
*Install or buy a car alarm.

If you’re buying an older car, ask your insurance agent if some coverage can be reduced or eliminated.

Auto insurance can be a maze of confusing information for new drivers, but if your parents carry you on their insurance you have the best option available for cost and amount of coverage. The reason is, single persons under the age of twenty-five typically pay more for insurance because most collisions occur within this age group.

If you’re a new driver and own your own home, you will find lower rates by using the same insurance company for both policies. Likewise, if you’re married, your spouse may be an experienced driver and can add you to his policy with lower overall rates.

You can find some great quotes on the Internet, but beware of obtaining too many quotes for your auto as it can lower your credit score when they do a quantity of credit checks. Online insurance companies typically route their calls to a customer service call center and you get what you get. The person may be highly knowledgeable or struggling to understand your policy.

Search for the best value you can find, but keep in mind premium rates can increase. I believe for new drivers, it’s advantageous to have an agent handle your account in person. You’ll have someone you can reach in an emergency and one who knows your unique policy and can answer your questions. You’ll have accountability.