07 Mar How To Get Cheaper Car Insurance For Teenagers
If you’re a teen and want to get cheaper car insurance, then keep reading
1. Choose the right type of vehicle.
Car insurance companies determine how much money to charge for insurance based in part on the type of vehicle that is being insured. Cars are categorized into different insurance groups, based on factors ranging from their size to their top speed. Typically, the cars that are the cheapest to insure for teenagers are the ones that fall into one of the first five groups. As a general rule of thumb, it is a good idea to avoid sports cars or other cars that are notoriously fast or powerful since they are more expensive to insure.
2. Don’t make modifications to the vehicle.
When a teenager gets a new car, one of the first things that they usually want to do is modify it. From installing customized body kits to putting on high-end wheels, they want to find ways to make their car unique. Unfortunately, these types of modifications can increase the cost of insurance – often by a significant amount. This can be particularly problematic with sports cars or other fast cars.
If you decide to go ahead with the modifications anyway, consider using inexpensive modified parts to help keep the cost down. This is especially important since you will most likely be paying higher premiums.
3. Consider having your driving monitored.
Insurance companies have started offering drivers the option to have a special device installed in your vehicle that monitors their driving habits. These devices not only track how far the vehicle is driven but also activities like hard braking or the rate of acceleration. As long as drivers adhere to the rules of the road, these devices can dramatically cut the cost of car insurance. The rates that are charged will be based on the actual driving behavior of the teen rather than on general statistics about other teen drivers that may or may not apply to them.
The amount of savings that is possible with one of these devices is quite high. It is well worth looking into whether or not one of these policies may work in your situation. Teens that are responsible drivers can benefit from having their driving monitored rather than getting a quote that is based on the driving habits of other teenagers.
4. Pay for your policy all at once.
Breaking your car insurance costs down into monthly payments can make it seem more affordable. In fact, however, payment plans actually wind up costing you extra money. Insurance companies charge additional fees for monthly plans, adding to the overall expense. If you can pay for six months or a year at a time, you will avoid these extra fees, saving money in the process.
5. Opt for a higher deductible.
If you are willing to agree to pay more money out of your own pocket in the event that you have to file a claim, you may be able to get a lower rate. Insurance plans with higher deductibles almost always are more affordable than those with lower deductibles. Of course, before you sign up for a high-deductible policy, you should make sure you have enough money put away to cover the amount of your deductible. Otherwise, you may find yourself scrambling to come up with money if you need to file a claim. Teenage drivers are more likely to be involved in accidents than older, more experienced drivers. Because of that, you should always be prepared to meet your deductible in case anything goes wrong on the road.
7. Choose the right level of coverage.
Different insurance policies offer different levels of coverage. For instance, a comprehensive policy covers damage to your vehicle as well as to any other vehicles that are involved in an accident. Third-party coverage, on the other hand, only covers the cost of repairing damage to other vehicles – not your own vehicle. Although these policies are cheaper than comprehensive policies, you do have to be prepared to cover the cost of repairing your own car if an accident occurs. When deciding on a policy, think about your driving habits as well as your vehicle.
7. Compare prices and policies.
It is important to compare all of your options before you decide which policy to purchase. Getting quotes from more than one insurer and for more than one type of policy can help you figure out which option is the best fit for your situation. Be sure to look at the policy itself rather than focusing on the price. A good insurance plan should provide adequate coverage for your needs. Although you may be tempted to go with the cheapest option, consider the financial impact of an accident before buying a bare-bones policy. You may find that it is better to pay a little bit more for insurance rather than having to come up with a lot of extra money if you ever have to file a claim.Check out the cheapest car insurance from moneyexpert.com