The Cheapest Car Insurance for Teenage Drivers

The teenage age has a lot of energy, excitement and always wants to have new experiences; however, it also associates with new responsibilities and duties as well as frustrations. Most of them are finding it difficult being financially stable because alongside paying for the student loans and house rent, they also have to pay more for car insurance.

A young driver at the wheel of her truck

The reason why teenagers pay more is that according to statistics they are most likely to claim for compensation; these are due to having less experience on roads and therefore tend to have more risks than the older age drivers. It is for this reason that the insurance cost for a young motorist to sky high.

Currently, those in the age bracket of 17-22 pay average cost of over $1,400 annually, furthermore the payments are likely to increase.

The above information should not frustrate you because there are cheap car insurances for motorists of 20 years old they include;

Comprehensive Insurance Cover

Once you are finished with the lessons and passed the theory and practical driving exams, you are ready to hit the road without supervision. The feeling is exciting for the first time, but, you will need to have a car insurance policy. There are three types whose costs and benefits vary; they include;

Third-party only which covers for the damage you may cause to people, cars and property; third party fire and theft and comprehensive. TPO may seem to be a cheaper solution, but in actual sense, that does not apply.

A badly damaged car after an accident

Imagine, in a situation where you are involved in an accident caused by another person, and you are not covered; for the damage to your car or injuries that you may suffer that may be a significant loss and you are yourself to blame.

The insurance company will not intervene in such a case; they will watch and expect you to pay your monthly charges.

To avoid such a significant loss take a comprehensive cover which takes care of; the third party only, the third party that cares for the fire and in a situation where theft of your car occurs plus, it offers a comprehensive cover whether the accident was your fault or not.

However note that not all insurers offer a comprehensive policy, hence, check the policy wording and schedule to know all the other exclusions. Though this approach is expensive, compared to the benefits, it provides over the different insurance plan it is advantageous.

Consider Black Box or Telematics Cover

If you are a first-time driver looking for an insurance policy consider the quotes that provide black box or telematics; this means that your car will be fixed with a small black box somewhere in the engine bay, it works by recording and transmission of data to your insurance company. The data recorded is useful in helping to reduce premiums as far as possible.

The data recorded includes; the distance that you cover, how often you drive, your speeding and breaking habits, how to go around bends or corners and many more. It will help to build your profile based on your driving habits and then they will use this data to calculate the amount you will pay on a monthly basis. The principal bases on your ability to drive carefully and responsibly and you will be able to save and lower the cost.

Named Driver Insurance

Another great way to find a low-cost premium is by either adding another regular driver or yourself becoming an auxiliary driver to someone else. However, the extra person must have more experience than you and do not include someone as the primary driver if they are not the ones, this is an offense known as fronting and could even invalidate your insurance.

A woman driving a convertible car

This method is a two-way risk in that; if you are the auxiliary driver depending on your road habits, you may increase or reduce the cost, and the same happens to the person you named as the second driver.

Therefore, for this to be beneficial both parties should be accountable. If you want to name second parties advisably, register the one with a good record and history on the road. It is also essential that you compare the various companies in the top comparison site their take on second drivers. Some company will increase the cost when you add another person while some will reduce.
named driver

Driving Old Cars

If you want to save start with the choice of the vehicle, most insurers have 50 categories where they can place a motor; this grouping development is on things such as the car’s power and engine size.

Some companies will choose not to cover a car in the highest categories owned by a young person; they consider it to be risky. Advisably, research on the automobiles that are of good quality and that does not appreciate high cost to insure.

Try Multi-Car Policies

A better way to find cheap insurance to a teenage driver is by being part of the family the multi-car policies; thus, one will save money because of the provision of discount which usually results from the number of cars insured to the company by the family members.

For this plan to be effective, you will need to have the policyholder add you to the household multi-car policy, and then you can pay for the cover separately. In most cases you pay the policyholder depending on the relationship, if they are your parents, you can pay them through various good deeds.

Consider a Higher Excess Policy

Excess is the amount that you contribute when claiming a plan. There are two types; the compulsory and the voluntary excess. The mandatory is the minimum amount the insurer requires you to pay while the voluntary or optional is the extra amount that you willingly add to the excess.

A young driver attracts additional compulsory excess if driving a high-performance vehicle and also because the likelihood of occurrence of risk is high. Choosing a higher excess means low risks to the insurer; thus the firms lower the premiums. Always ensure that you will be able to pay the voluntary amount when the need to claim arises.

Avoid Car Modifications and Reduce the Mileage

Pimping your car is fun, but it may not save money especially if it not for security purpose, it will attract more charges. Ensure to inform the insurance provider if you want to make such changes to avoid invalidation.

The lesser you are on the road; the lower you are perceived as a risk. When you are accurate on the estimated mileage you avoid overpaying for the miles that you are not likely to use; you can monitor it by sometimes using public transport.

Something in universal covers all the above policies and that is, providing the correct information to the insurer. It is the golden rule. If you fraud it will lead to invalidation or criminal prosecution.

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