Mitigating Insurance Costs for Young Drivers For many young drivers, getting their vehicle insured is the most expensive aspect to driving. Over time, with the wrong insurance provider or insurance plan, the cost to insure a vehicle can amount to more that the car’s initial purchase cost plus the cost of gasoline.
Why So Much? Insurance companies determine the cost of the premiums they charge depending upon the risk they incur by taking on the client. Insurance studies have shown that the demographic of young drivers under the age of twenty five are the most risky to insure because of the likelihood that they have to get into accidents and file claims with their insurance company. Because the insurance companies therefore take on greater risks to themselves by insuring a young driver, the average quotes for car insurance for young drivers is typically well over other demographics’ average costs. For young drivers who are looking for the right car insurance in Colorado, there are options, tips, and techniques that they can employ to lower the industry-wide high costs of young driver insurance.
Cost Reduction Young drivers searching for car insurance in Colorado can help themselves lower their quotes by performing a number of differing actions and steps. The first step that a young driver can take to lower their car insurance costs is to drive safely and maintain a clean driving record. A young driver can prove that they are a safe driver by having a clean record. A clean record can instantly lower the insurance costs for insuring a young driver’s vehicle and can continue to lower them with time through building up a no-claims bonus or discount that most insurance companies offer to their customers.
Beyond being a safe driver, a young driver can lower their car insurance costs by choosing to drive a vehicle that has good safety ratings and a low powered engine. If the make and model of the vehicle that a young driver is trying to ensure suggests that speed and aggression will be the hallmarks of the driving career for the individual, the insurance company is less likely to issue a low quote cost. By having a low powered engine and a good safety rating on the car, a young driver will be able to receive lower insurance costs because the risk of getting in an accident is lowered. In general, a young driver should steer clear of the fast and sporty cars and choose instead the safer and slower cars. Another way to reduce the costs of car insurance in Colorado for young drivers includes installing anti-theft devices into the vehicle. Having an anti-theft device, or car alarm, installed on the vehicle reduces the likelihood that the car will be stolen, and therefor reduces the likelihood that the insurance company will have to pay out for a filed insurance claim. But perhaps the best way for a young driver in Colorado to find the right car insurance is to do their homework. By shopping around from insurance company to insurance company a young driver will be able to compare polices and quotes in order to find the policy that fits the best for them. Photo Credit: State Farm, State Farm