If you are under 21 and thinking about getting a vehicle there is a lot to consider. On average cars and motorcycles cost 5 to 7 times more than they did in 1970. Fuel for your vehicle is now approaching $4 per gallon, which is 15 times the cost per gallon in 1970.
Young driver insurance for applicants under age 21 drivers now runs $2,000 to $3,000 for six months, and that is with driver’s education certificate and parental supervised driving for two years. That is seven times more expensive than 1970 auto insurance polices for the same coverage of young driver insurance.
The reason for this is statistics. Historical data on under 21 drivers, paints a bleak picture of their driving habits. In 1970, a young driver was given the benefit of the doubt and if they started getting citations or any type of accident, the rates doubled or tripled.
Recently, thanks to the Internet, the market for young driver insurance has become more competitive. If a person checks online, it is possible to get significant discounts on the type of rates mentioned above for insurance.
Before checking with local insurance agents, get online and start with websites that will take your data and driving history info. Use the websites that obtain quotes from more than one insurance company at a time. Compare quotes and make sure each website knows about any training you have had for driving. Private or school sponsored drivers education always helps get lower rates. If your state requires parental sponsored driving periods, which you completed, make sure the website is aware of that too.
Use a spreadsheet to make a matrix with the websites you use in one column and the quoting insurance companies in the other columns. You will be surprised to see how some insurance companies quotes will vary from website to another. Since they all are quoting on the same data they should be the same, but usually they are not. The difference can be up to 25%. Add to that a 10 to 15% discount for driver’s education, a 5% discount for declaring you do not drink alcohol and you are up to a 45 % real discount.
Now that you have that young driver insurance quote from the Internet, pick apart the policies each website offered and eliminate or reduce some types of coverage. No one knows you like you do yourself. If you intend to be a perfect driver, do not drink and do not smoke you can consider having higher deductible policies. That means if there is an accident, an amount equal to the deductible reduces the amount of insurance coverage payment you get in case of an accident.
The coverage you need for sure are liability and third party coverage, in case you hurt someone else in an accident or some one drives your car and has an accident. Collision coverage may be something to which you can apply a high deductible, thus reducing your premium even farther. Look for policies that allow you to have a rate deduction review every 3 to 6 months if you have no citations or accidents.
After you get all this information about car insurance for young drivers from online auto insurance websites, make a choice. Take that information and go to your local incurrence company, perhaps even the company that insures your parents, and get a quote. Make sure they know about the quote for young driver insurance from online, but do not tell them the name of the insurance company. They might give you a lower rate because they want all your family’s business.