Insurance is a big part of the costs that come with owning a car. Every state has its own policy that requires drivers to purchase at least a minimal amount of liability coverage. Unfortunately, a person’s driving experience is a determining factor for the amount he or she needs to pay.
In simple words, insurance rates are much higher for teenagers and new drivers. The rationale is that the likelihood of getting in an accident and doing damage to someone else’s property is higher among less experienced drivers. Whether you agree with that or not, it’s the law, and it is in your best interests to abide by it.
For many young and less experienced drivers in North Carolina, insurance is a big hindrance to owning a car. It’s not always fair because not all young people have rich parents who will cover the costs. The good news is that there are ways to get cheaper rates. There are quite a handful of auto insurance policy providers in Raleigh that offer promos and discounts to young drivers. Many of these policies may have stipulations and provisions by way of “fine print” but are nevertheless worth a try.
Here’s what teen drivers can do to get cheaper insurance premiums.
Take Advanced Driving Classes
One way to lower your insurance rate is to think like an insurance agent. Auto insurance agents in Raleigh factor in your driving experience when calculating your premium. As a teen, you may not have enough experience to flaunt.
Agents calculate risk based on concrete, measurable variables – so the number of years you’ve been driving matters. If you don’t have years of experience to show, you can, in the meantime, take approved advanced driving classes, such as a defensive driving or driver training course. Also, being accident-free for five years could get you a discount.
Get Good Grades
It’s quite common for insurance companies to give discounted rates to students who earn top grades. In North Carolina and many other states, being a good student can get your premiums down. But if you didn’t quite hit the mark in high school, you’d still get a chance to study harder and prove yourself; because this incentive applies to college students, as well. All you need is to get a B average or higher.
Maintain Good Driving Habits
Defensive driving and being accident-free for three to five years can also earn you even bigger discounts. If you go years without being in a crash or getting a moving violation or speeding ticket, your insurance rate will fall. You could also get refunds as high as 30% if you maintain a claim-free record for at least three years.
Lower your Gas Mileage
The costs of operating a car vary from one person to another. This is why insurance agents take many different factors into account when deciding on your policy. Reducing your gas mileage gives your agent an impression that you don’t use your car often.
Lowering the miles you travel reduces your odds of being in a wreck, which then lowers your insurance risk and therefore, your premium. Instead of driving all the time, mix it up with biking, walking or taking public transport. Take your car out only when you really need to, like when going on a camping trip or buying groceries.
Buy a Cheap Car
Some insurance carriers also give steep discounts for certain types of vehicles. Teenagers and young adults are highly encouraged to buy used cars, as buying a current year, brand new vehicle most often does not pan out financially, given their circumstances. Owning a cost-friendly, used car is a wise move if you intend to lower your insurance bill.
Go for well-maintained models that are a few years old instead of flashier models. Being frugal about this decision says something about your personality, too. Agents will see you as a responsible driver who is less likely to get into an accident, when you are careful about your spending.
As a young and less experienced insurance shopper, it’s wise to take your time when deciding on which car to buy. Compare quotes and costs. Ask your parents for advice, if you can. Assuming that your financial situation isn’t that stable yet, it’s best to go for a no-frills insurance policy that offers a range of discounts.