Automotive Guruz

Insurance company premiums reflect the statistical likelihood of an accident based solely on the demographic the driver belongs to. The group who most frequent file claims are teenaged males, so it’s no surprise that they are the most expensive people to insure. With this in mind, there are several things young drivers can do to keep their insurance premium costs down.

1. Some cars cost more to insure than others: A fast, red sports car is more expensive to insure than a Honda sedan. Some cars are also more expensive to repair in case of an accident, and this is also factored in the cost of insurance. A fast red car also makes an easy target for a policeman looking to catch people speeding, but that’s another story.

2.Ask for a Discount: Car insurance companies have different reasons for discounting your premium: your parents might use the same company for home insurance; your family might have several cars insured by the same company; some companies give you a deal if you have an anti-theft device in your car. There are lots more discounts out there. Be sure to ask and get the savings you’re entitled to, but do the research yourself since most companies won’t go out of their way to save you money.

3.Drive less: Car insurance premiums reflect the likelihood of an accident, so the less you declare you’ll be driving under the policy drive the less money you will have to pay. It also differs depending on whether you are the primary or secondary driver of the car. If you are a young driver sometimes driving your parents car this is something you must keep in mind. Note: If you are away at school and have no access to the car under which you are insured, even if you’re not the primary driver, many companies have a discount in place.

4.Take Lessons: Graduating from a driving school is a reliable way to lower your car insurance premium. It is a certified way of showing them you’re statistically a better driver than you would be otherwise. Also, by becoming a better driver, you diminish the risks of getting into an accident and thereby avoiding a future increase in your premium.

5.Compare rates: As a youth, it’s likely your parents’ first instinct will be to include you on their plan, but this is only worthwhile if the discount this gives you works out to be less than the regular price at other company. This is worth investigating.

6.Pay a higher deductible: This is a calculated gamble that could backfire if you’re not a careful driver. However, in the short term it will lower your premium and it will be cheaper overall provided you don’t get into an accident. Then again, insurance is about covering yourself for that - just incase - situation, so consider this as an option and do whatever you feel comfortable doing.

7.Be a defensive driver: This is extremely obvious, but still it’s worth mentioning. It may not save you money right away, but every accident you get into increases the cost of your next policy. An unblemished driving record saves you dollars down the road. Most importantly, safety speaks for itself.

There isn’t much you can do to change the cost of your car, gas, or parking, but your car insurance premium doesn’t have to be a nightmare if you keep these tips in mind. Drive safe!