Cheap Car Insurance For Young Drivers

Many young drivers are in search for the cheapest car insurance they could find. Most insurance companies agree that there is a greater risk where young drivers are concerned. This is because, having little driving experiences and while still in the process of learning, young drivers are most likely to get involved in car accidents. Finding cheap car insurance for young drivers can be a difficult task and there also a lot of things to consider.

Car insurance is based upon the reliability of the driver and the probable chances that he or she gets caught up with an accident, and the claim’s cost if in any case the accident happens. Statistically, drivers below the age of 25 have the highest rate when it comes to road accidents, which is unfortunate, since this means they have to pay more for their car insurance.

The rule states that older drivers will have lesser insurance premiums. In comparison, younger drivers even have to pay more to get insured. Senior citizens, however, are a different case since their reflexes are not as sharp as they were, thus increasing their likelihood to get involved with accidents.

According to CarsDirect, for a six-month insurance premium, a male driver under the age of 24 must pay an average of $2,000, while drivers with ages between 25 and 29 only pays around half of the said amount, even with the same insurance policies. This is only one example, as different insurance companies have different rates.

Difference between Cost for Males and Females

Compared to female drivers, men usually are charged with higher insurance rates for comprehensive coverage and liability. This rule applies to every age group. Male drivers tend to pay 9 to 10 percent more for insurance until the age of 55. Beyond this age, the rate goes down to a 5 percent gap between both genders.

Some often asks why this is so. To view men as more likely to do dangerous and reckless stuff is stereotyping yet records seem to prove it anyway. But regardless of how gender is commonly viewed, insurance companies also base this to differences between men and women who shop for car insurance online.

InsWeb.com allows applicants to take an online examination for insurance quotes request.

Based upon the results, there are certain differences between male and female drivers that must be taken into account, including the following:

· The percentage of female drivers’ likelihood to have a DUI/DWI on their record is roughly 50 percent less than that of male drivers.

· The percentage of female drivers’ likelihood to have a moving violation on their records is 10 percent less than men.

· The vehicles most women own costs 8 percent less than the price of vehicles owned by men.

Do School Grades Affect Cost?

Yes it does. A lot of insurance companies offer student discounts from car insurance rates for young drivers who is able to maintain a sufficient GPA in high school or college. This is one advantage, making car insurance for young drivers more affordable. It would be much better and less of a burden especially when paired with safe driver discounts. If you are a young driver looking for ways to get discounts based on GPA, then you should contact the insurance company of your preference and inquire about the application process.

How GPA-based Discounts Work

Students are offered GPA-based discounts for car insurances because insurance companies expect responsible students to be responsible drivers as well. Having good grades seem to be very useful when you plan to get a car. Insurance providers require each applicant to submit a record or proof of their grades regularly. College students will have to submit their transcript of records, and high school students must present or provide a copy of their report cards.

Maintaining a high GPA is one of the best ways to lessen the cost of insurance rates for young drivers. What’s more to this is that not only high school or undergraduate students can avail of the discount. Most insurance companies offer this type of discount to students up to the age of 25, thus even graduate or professional students can also make use of its benefits.  On rare occasions, an insurance agent may forget to remove the discount even when the age requirement has lapsed. This happens especially when regular submission of GPA record or proof of enrollment is not required.

The required grade point average that will qualify an applicant for the GPA-based discount is 3.0 or B average. However, not all insurance companies have the same requirements. To be certain, interested applicants must confirm the details upon inquiry.

What Types of Monthly Cost to Expect

The cost of car insurance may vary from state to state or from one insurance company to another. However, given that young drivers have higher insurance rates, this result to an increase of 50 to 200 percent of the existing payment, according to a 2011 article on MSN Money Central. Another source coming from Lease Guide states that teen drivers or those below 25 usually have annual costs between $1,000 and $4,000, which means that expected monthly cost should be around $83 to $333. For a six-month policy, the national average rate is $765 for male drivers and $698 for female.

Insurance Company Names

Car insurance is compulsory in all states, but the type of insurance varies between them as mentioned earlier. When choosing a car insurance company, there are factors that must be given consideration like the costs and claims process. Here is a list of the top car insurance companies which you can add to your options.

Esurance

This insurance company features online services for simple and convenient method of changing policies and payment. They also offer more affordable rates compared to other insurance companies. Esurance also provides insurance not only for auto and motorcycle but also health, renter’s and life insurances, with rates that could really compete with other insurance providers. Although there have been a lot of negative feedback about the company’s customer service inquiries, it still is the most convenient when it comes to payment and initial policy set-up.

Geico

This company is the most recognized among car insurance providers. They are at top in terms of marketing and promotion. They are popular for their excellent customer services, knowledgeable agents and competitive insurance rates. Geico offers insurance for auto, RV, boat, ATV, motorcycle, home, condo, renter’s, and even for umbrella, flood and overseas.

Progressive

Progressive offers insurance for homeowner’s, renter’s, motorcycle and car. They are known for being “high risk” insurance, offering free quotes and quoting rates of competing insurance companies.  A lot of clients who availed of their insurance gave positive feedbacks about their services especially during collision accidents where the client is at fault.

Allstate

This is among the top car insurance companies with very competitive prices and rates. They offer rewards to clients or drivers who is able to maintain a clean record and avoiding accidents. Like most insurance companies, they also provide online services allowing clients to access their accounts and change policy coverage. They are well known for having knowledgeable insurance agents and policies which are easy-to-comprehend. The company offers insurance for homeowner’s, renter’s, motorcycle, motor home, boat, snowmobile and even life insurances.

Type of Coverage Available

There are two types of car insurance coverage available. The first is third party, fire and theft insurance which will cover the costs for damages caused by fire, stolen car, and accidents. However, this type of insurance will not be able to shoulder the costs of repairs. The second type is comprehensive cover, which is more expensive but provides greater benefits. This type will be able to cover the cost of both vehicles if the client was involved in an accident. Named drivers or young drivers who are allowed to use their parent’s cars as stated in the policy as they won’t be able to make their own no claims bonus if ever accidents happen, so they must not be the one using the vehicle often.

Ways to Keep Car Insurance Cost Down

· When choosing your first car, opt for those which are low powered and have more safety features like traction control and multiple airbags. These types have least insurance premiums since it promotes safety and accident preventions. Although high powered vehicles like sports cars sure are great, insurance companies see these types as more accident prone. Young drivers must remove these from their choices if they are looking for affordable car insurance.

· Search for discounts. There are a lot of companies offering GPA-based discounts for car insurance. Completing an advance driving course such as the Pass Plus test or any defensive driving class approved by your chosen insurance provider will also reduce the rate of premium.

· Shop around and look for insurance quotes with comparisons from one insurance company to the next. Different companies have different offers and promos for young drivers, and rates could vary depending upon where you get your insurance from.

These are few recommendations to help young drivers find cheap and affordable car insurance. The most important key to keep insurance premiums down is to drive safely. If you get caught over-speeding, or if you end up in an accident, there’s a possibility that your car insurance premiums will go up.