Avoiding the High Costs of Car Insurance as a New Driver

• Cars that have higher safety ratings are less expensive to insure and provide the parents with a little extra sense of security. Having your child driving away for the first time can be nerve-wrecking but this could make it slightly easier.
• Many insurance companies reward students for good grades. Ask your agent if they offer this discount and discuss the value of working hard with your teen. Putting a dollar value to a grade can often encourage improvement.
• If your child is leaving after the summer for college, make sure you tell the company when adding them to the policy. Distant-student discounts work be reducing the money cost throughout the life of the policy to take into account that the driver spends most of their time away at school.
• Adjusting deductibles can have a significant impact on monthly costs. This can be tricky based on state and local laws as well as possible requirements put in place by your vehicles lien holder. With older vehicles there is more flexibility and the option for liability only coverage if it is paid off.
• Using new technologies that may be provided by your insurance provider monitor the driving habits of the driver and can provide discounts up to 30%. This minicomputer is plugged in to your car and records acceleration patterns, vehicle speed and the completeness of stops to help the agent determine what if any discount can be applied to the policy.
• The state of Texas requires that companies discount car insurance policies for all drivers who take an approved driving safety course. This will not only be a good course for the new driver but also serves as a great refresher for more experienced drivers.
• Insuring you vehicles and home with the same company can help you save. Some policy discounts include auto, homeowners, renters, life, boat, recreational vehicles and more. These discounts are often the most substantial. It may take a few hours to get everything switched over but the savings can last for years and save you thousands.
• Talk to your insurance company or local agent. You will be amazed the lengths they will go to in search of discounts when it appears that you are shopping around.

While not all of these tips apply to ever situation, keep this list handy so that you can be prepared when your insurance agent, whether a little green gecko or a good neighbor, quotes you for the new policy. Please remember that safety, the law, and being prepared for the road are all more important than saving a few dollars on your bills.