Don’t let first-time driver insurance surprise you

If you’re just starting out looking for first-time drivers insurance, don’t let the prices surprise you. You probably have a lot of questions. How can they collect that amount of money? Is there anything I can do about it? Where can I get a better deal? Here are some answers that may help you.

How can they charge so much money?

Insurance companies make money by being able to analyze risk, that’s underwriting, and after paying all the expenses they make a profit. This is how they can stay in business. Statistics show that a 17-year-old driver is five times more likely to be in a serious car accident than a 35-year-old driver. It all comes down to experience along the way, and that takes some time. In 2006, car crashes involving teens cost $34 billion, and nearly $10 billion of those costs were from fatal crashes. Of the teen drivers who died that year, 31% had been drinking according to the NHTSA. Statistics are an important factor in pricing.

What can you do?

Here are just two areas, out of many, that you can directly affect. These actions will help lower your premiums. Practical training may involve taking classes at a defensive driving school. A school like this can teach you critical skills that will keep you safe on the road. Many insurance companies will reduce her premium after she has successfully completed this type of course. Taking a course is one of the many ways you can show that you are a responsible driver. The type of car you drive matters. Before you buy a vehicle, check with your insurance company to see if it will raise or lower your premium. Each insurance company has a vehicle classification formula. (Example: 4-door sedans lower the premium while SUVs raise it.) doesn’t mean you can’t lower them using your individual effort.

Where can you get the best deal?

Start looking online and know what you’re looking for before you start. Each state has minimum insurance requirements for first-time drivers, so find out what yours are before you start looking. Standard insurance for first time drivers includes liability coverage. Do not accept the first quote you receive. Always get at least three quotes from three different companies. Insurance companies charge different prices for the same coverage, due to underwriters.

First-time driver insurance is expensive, that’s just a fact of life. That doesn’t mean it can’t affect the price you pay in monthly premiums. By learning about the things you can do, drive safely, and shop and compare the prices of your insurance, you can save money every month.