How can they charge that much money?
Insurance companies make money by being able to analyze risk, that’s what underwriting is, and after paying out all expenses make a profit. That’s how they can stay in business. Statistics show that a 17-year-old driver is five times more likely to get in a major automobile accident then a 35-year-old driver. It all comes down to experience on the road, and that takes some time. In 2006, automobile crashes involving teenagers cost $34 billion, and almost $10 billion of those costs were from fatal accidents. Of the teen drivers that were killed that year, 31% had been drinking according to NHTSA. Statistics are a big factor in prices.
What can you do?
Here are just two areas, out of many, that you can directly affect. These actions will help bring your premiums down. Hands-on training can involve taking classes in a defensive driving school. A school like this can teach you critical skills that will keep you safe on the road. Many insurance companies will lower your premium after you have successfully completed this type of course. Taking a course is one of many ways that you can show that you are a responsible driver. The type of car you drive matters. Before you buy a vehicle check with your insurance company to see if it will raise or lower your premium. Each insurance company has a vehicle rating formula.(Example: 4 door sedans lower the premium while SUV’s raise it.) Because of your age and your limited driving experience, your insurance premiums will be higher than they will be after you turn 25. That doesn’t mean that you can’t lower them using your individual effort.
Where can you get the best deal?
Start looking online, and know what you are looking for before you start. Every state has minimum first time driver insurance requirements, know what yours are before you start searching. Standard first time driver insurance includes liability coverage. Don’t take the first quote you get. Always get at least three quotes from three different companies. Insurance companies charge different prices for the same coverage, because of the underwriters.
First time driver insurance is expensive, that’s just a fact of life. That doesn’t mean that you can’t effect the price you pay in monthly premiums. If you learn about the things that you can do, drive safely, and shop and compare prices for your insurance, you can save money every month.
If you want to find other things that you can do to lower your insurance premium click on student car insurance or look at: http://highriskdriverinsuranceinfo.com/ for more information.
