Helpful Tips for Comparing Auto Insurance Quotes for the First Time
Trying to find first-time driver insurance? If you need auto insurance quotes for the first time, then you probably know to expect high insurance rates.
New drivers are a big risk to an insurance company because they lack experience behind the wheel. This usually results in more accidents and mishaps that end up costing the insurance company money. It is a simple risk assessment by the insurance company. They are trying to protect themselves against the high probability that they will have to pay a new driver’s claim.
With a new driver, there is no actual driving history to take into account. However, insurance companies are very smart. They have people working for them who basically profile drivers and cars to determine risk. For example, drivers under the age of 25 tend to have more accidents than drivers over the age of 25. First-time drivers tend to have the most accidents than anyone else. It is simple lack of exposure to events and experience in driving a car.
The type of car you have provided your first driver will also affect your results. Certain makes and models of cars are more in demand than others, which in turn leads to more car thefts of these makes and models. If your car is stolen, your insurance company loses a lot of money to replace it. So if you drive a car that has a higher chance of vehicle loss, you will pay more. You can reduce your costs by knowing in advance which cars are most at risk of theft and by purchasing a different car for the first-time driver. This will reduce your costs a bit.
Another way to reduce insurance costs for your new driver is to compare the prices of auto insurance policies from different companies. A quick and efficient way to accomplish this is to find a website that compares prices from a variety of companies and shows you how they stack up against each other. This will allow you to make the best possible decision about which company to look for a policy for your new driver.
We all have to have insurance, whether you are a new driver or not. Legally, we cannot be on the road without insurance. Insurance companies are aware of this law and know that you have to buy a policy from someone. But competition saves the consumer. The fact that there are numerous companies competing for your business is to your advantage. This will allow you to find a policy that you can afford.
Keep your deductible in mind when making your decision. The higher your deductible, the lower your monthly payment. However, if your first driver is in an accident, as the statistics say, you’ll have to pay that deductible out of pocket. If that can prove to be a problem, then you may want to take on the higher monthly costs.