Thinking about car insurance can be a scary prospect for first-time drivers and their parents, but it is a reality that we all have to face before getting behind the wheel. It is important to remember that most states require a minimum amount of car insurance when hitting the road. Fortunately, inexpensive car insurance does exist for first-time drivers.
The Car Matters
Before buying a new or used vehicle, check what it will cost to insure. Auto insurance premiums are based in part on the car’s price, the cost to repair it, its overall safety record, and the likelihood of theft. Many insurers offer discounts for features that reduce the risk of injuries or theft. You can research safety rankings for specific models with the Insurance Institute for Highway Safety’s (IIHS) Top Safety Pick ratings tool.
A great way to save on insurance is by combining a car insurance policy with a renter’s or homeowner’s policy from the same company. Some companies will even offer the discount for each policy. Teens can also save when getting auto coverage on their parents’ policy. It costs teens and their families less per year when covered under a single car insurance policy than if a teen buys their own coverage.
Good Student Discounts
If there is a young driver on your policy who is a good student, has taken a drivers education course, or is away at college without a car, you may also qualify for a lower rate. Good student discounts can range from 10% to 25%, depending on the insurance company and state. One important thing to keep in mind is that the key to savings is not necessarily getting discounts, but the final price. A company that offers few discounts may still have a lower overall price.
A Higher Deductible
A deductible is the amount you pay before your insurance policy kicks in. By choosing a higher deductible, you can significantly lower your costs. But remember, before choosing a higher deductible be sure you have enough money set aside to pay it if you have a claim.
The cost of auto insurance premiums can vary by hundreds of dollars, depending what type of car you have and the age of the driver. Prices differ from company to company, so it pays to shop around. It is important to have the right amount of coverage to ensure everyone’s safety.
The Morrissey Law Firm, PC, is located in Springfield, Missouri, and focuses in personal injury and wrongful death trial work. If you need a personal injury or wrongful death attorney, please visit our website or call (417) 887-0529 to schedule a consultation.