Shopping For Car Insurance As A New Driver

By Author: Steve Khzakia
Total Articles: 4762
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When you are first starting out your "auto career" as a new driver there are a few things that you need to know bout getting your car insurance for the first time. First-time drivers will usually pay a higher rate than those that have been on the road for a while. Many insurance companies view first-time drivers as a liability due to the high accident rate of young drivers vs. older, more experienced ones. Although a new driver might receive higher premiums during the first year, subsequent years' premiums will gradually decrease as long as the driver's record remains clear.

Doing some shopping around for coverage is one of the most important things a first time insurance buyer should do. Although it's likely that your search will end up with a lot of the same results and price ranges, there are some companies that offer better rates and policies that won't rob your wallet. You can easily go online and obtain insurance quotes, which can also save you a lot of time and hassle. You might also be very surprised at the rates that you're quoted from an agent if you call in person. However, insurance quotes that are given ...
... over the phone may not be an accurate reflection of the true cost of the policy.

Details, details
Depending on the car that you are driving you might run into higher premiums, too. That dream car that the folks bought you might end up costing you in insurance premiums that are more than you would like to pay - or, worse, more than you are really able to pay. Full coverage costs more than liability only, and the type of vehicle you drive will also determine which policy is going to be best for you.

Whether you own the car outright or have a "lien holder" (bank or car lot) will affect determine how much the premiums will be, as well. High-powered or luxury cars face a higher rate of being stolen, which will make your insurance rates much higher than for cheaper and/or less sporty cars. It is wise for first-time insurance buyers looking for lower rates to ensure the security of the car. Some insurance companies will consider the car less of a liability if it's kept inside of a garage, has anti-theft technology or is equipped with a location device (Lojack, etc.).

If you are having issues in your search for a first time policy you may want to consider asking a more experienced driver with a good driving record to be the policy holder and then name you as the secondary driver. As a secondary driver you are not entitled to build up the bonuses for keeping a non-claim policy for a certain amount of time - there are some insurance companies that will give you a safe driver's discount after a year of having no accidents or tickets - but the option remains a good one for those new drivers who feel they might run into a few mishaps in the first year.

Perks and rewards
There are some insurance companies that offer "perks" and recognize good efforts at safe driving when they see them. Teens that have a good grade point average in school may have their premiums reduced if they maintain the grades. Maintaining safe driving practices also keeps your driving record free of black marks. Getting DMV-issued points on your driving record will make your insurance premiums increase. There are also other discounts that apply to new drivers. The driver's training in high school (or a private school) gives teens the chance to learn how to drive and can reward them with a discount on their premiums once a policy is obtained.

These training courses also teach teens how to drive more safely and emphasize the point by showing them videos of accident scenes. Although some of the scenes can be a bit gruesome, they are a great way to put some fear into new teen drivers. This scare tactic has been proven successful and shows young people and other new drivers the "dark side" of driving, which can make them safer and better drivers. Being a safe driver, over time, keeps those insurance premiums low.

Most states mandate car insurance by law, but even common sense will tell you there is no question that it needs to be purchased before you start driving your own vehicle. Doing some shopping around, and getting a few quotes and rates to compare, can help you decide on the right policy to buy. Remember that cheaper is not always better. If you truly cherish your car, you will need to consider that your premiums are going to be higher for full coverage but it is usually well worth it. If your car has a lower value, and you don't owe any money on it, then liability coverage alone might be a good choice. Whatever policy you choose, do your homework before making a final decision and don't underinsure!
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