Auto insurance deductibles
Car insurance for young drivers is an important thing especially for those who are getting their driving licence or just out of college and for those who must consider how to budget every month for their auto insurance before they turn 25. In the scenarios listed below, the person who is looking for a good deal on auto insurance should carefully consider how to get a good rate, why rates are so high and how to keep rates low until they turn 25.
Remembering that young drivers are anyone under 25, it is best to start with the beginners and work up to the person who is out of school, working and still has high insurance premiums.
Some insurance companies are going to rate a person's insurance based on the likelihood of getting involved in an accident. The state of the car, the age, and the security features also help determine the insurance premium as they might figure in the risk of the car being stolen.
For new drivers, a clean record is a good place to start. While the insurance premiums for young drivers are already high, they are higher for those who have just gotten their licence. This is because 24 percent of fatalities happen to those who are 16-24 years old. Also, 26 percent of serious injuries happen to those who are 16-24 years old. Therefore, while insurance premiums may seem high for these drivers, the insurance companies have the statistics on their side. They know that these younger drivers are more likely to be involved in an accident and they can back it up with statistics.
There is no getting around these statistics, but every year that the driver has a clean driving record is one more year that the policy could dip down slightly in cost. These discounts might not be massive, but a 16-year old who begins with a clean driving record and can keep it until they turn 25 is likely to have their rate discounted each year and eventually end up with an affordable premium once they are 25.
While it is true that the young driver will have to pay more than normal even if they have a clean driving record, it is still wise to check for good rates at all the major insurers. This is because insurance companies have different deals including those for students and their parents combined.
Parents adding a teenager or young adult to their auto insurance policy should expect the rate to go up. However, there are deals out there that allow for student drivers to get a slight break on their premium or for the family to get a price break on their insurance rates.
These deals can also extend to the student once they are in college or if they will be paying for the insurance themselves. When the student heads off to college, they may lose the blanket of protection their parents' insurance provided, but there are still insurance deals and special programs to seek out.
Students who are attending university may also find that they are eligible for special discounted insurance rates through their chosen school.
When the driver is still under 25 but out of school, looking for better insurance rates, as always, is still a good idea. Sometimes, insurance companies will look more favourably upon someone who has a full-time job as opposed to someone who is in school full-time. Plus, many employers have special rates that they can offer their employees through partnerships with insurance companies.
Drivers living on a tight budget must also consider how they can get lower insurance rates. Use the fact that you have a clean driving record to take full advantage. Even before the driver turns 25, better rates may be available to those with a clean driving record if they shop around.
Considering a monthly budget should also come into play when these students are managing student debt. Student debt is a big problem for those who have attended college, but that does not mean they should be excluded from having car insurance. In fact, there are companies that will offer special rates to students who have recently graduated and are paying off student debt. In essence, it is wise to use every avenue available to save on your insurance rates.
Students who have graduated from college and are paying for their own insurance should consider discounts related to the model and type of car they drive. The fact remains that sports cars are targeted for higher insurance rates. Having a small, economy model car may help to keep costs down for the student while attending school or starting their first job out of college.
A security alarm on the car will also help lower the premiums, as will the car's make and model. A large SUV will cost more to insure than a smaller, cheaper car for many reasons including the fact it is more likely to be stolen.
Students, who are looking for car insurance in Ontario should start by establishing a clean driving record, take advantage of their parent's policy if discounts are offered and constantly shop for good rates, especially before they turn 25.
Let us know your renewal date and we’ll let you know the best time to shop the market for the cheapest car insurance rates.