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5 Ways to Lower Insurance Costs for Younger Drivers

Young Drivers

Car insurance for young drivers is generally more expensive than for established drivers because younger drivers are less experienced behind the wheel. Insurance companies see younger drivers as more of a risk, but there are a few things you can do to lower the cost of your first car insurance.

Insurance companies have a checklist of items that they ask any driver who signs up. By doing a few things in preparation, you can make sure your insurance costs are kept to a minimum.

1. Shop around for your insurance.

There is a huge range of available options when it comes to choosing your car insurance.  Make sure you spend some time looking around for the best deal. A little research can save you hundreds or even thousands of dollars over the coming years. Most people tend to stick with the same insurance company, so choose wisely first time and you’ll be setting yourself up well. Don’t just choose a company because your parents or friends use that one. Do your own research and don’t just choose the biggest or most popular insurer – these will often turn out to also be the most expensive! Use an insurance comparison tool to find the best deal.

2. Choose your car carefully

Insurance companies take your make and model of car into consideration when setting your insurance costs. Don’t buy a car that has been modified, and try to choose a car that has easily-sourced spare parts. For example, imported cars have harder to find parts and will result in higher insurance costs. Use some quality research tools to help choose an appropriate car, and check out our previous post on the best cars for teens and grads.

3. Work on your car security

Make sure your car has an alarm fitted and try to store it off the street, preferably in a locked garage. Car insurance companies take the car’s parking situation into account when determining how likely it is to be stolen. The more secure your car, the less likely it is to be damaged or stolen, and the lower your insurance costs.

4. Avoid traffic violations

Easier said than done, but it’s important that when you apply for your car insurance your driving record is as clean as possible. If you’ve only just been given your drivers’ license, make an extra effort to stay out of trouble on the road, at least until you arrange insurance. You may find you’re not just up for the cost of the violation, but also increased insurance costs over the coming years.

5. Sign up online

Most insurance companies will give a discount for arranging your car insurance online. This is because the system is automated so it means lower costs for them in terms of staff salaries and processing costs. These days it’s very easy to arrange your insurance online, so use the insurer’s website to make your application. You can generally save around 10% on your policy by taking this option.

By taking these simple steps you can lower the cost of first time insurance. There may be more ways you can reduce your insurance costs so do some research in your local area too. Some insurance companies offer lower rates for young drivers who sign up an older nominated driver on the policy, or who take a driving course. See if these are also options for you by making enquiries with your prospective insurer.