| Wednesday, October 6, 2010 |

First Time Car Insurance - How Much Will it Cost?

Getting their driver’s license is incredibly exciting for any teenager and getting their hands on their first car even more so. Freedom, the open road, no more waiting for the parents to pick you up from mall. Buying first time car insurance is generally very low on the list of exciting vehicle related activities in the mind of the average teenage driver but you can bet its very much on their parents minds, as is securing the best rate possible.

Since insurance companies base their premium rates on partially on driving record and credit history young drivers are already at a financial disadvantage. They have no driving record yet and most seventeen year olds don’t have much in the way of a credit rating either. To make matters worse the national statistics that car insurance companies also like to rely on heavily to access risk and set premium levels don’t paint a picture of young drivers as very careful ones either. Statistics indicate that they end up in the most accidents and involved with more vehicle damage than other age groups.

So the idea of scoring “cheap” first time car insurance is pretty much pie in the sky but there are ways to find less expensive ways to insure a car for a new driver.

Taking the time to shop around and compare quotes helps. Even though they access young drivers as the biggest risk most of the time the car insurance companies still want their business, theirs is a highly competitive industry after all. Some insurance companies offer policy discounts for good school grades (going along with the logic that a kid that can maintain good grades is a more responsible one) or to those teenagers who have held a part time job for a while. 

If they are going to buy their own first time car insurance policy the best thing the young driver can do is educate themselves a little about the different levels of coverage that are available for the vehicle they have, choose the policy that offers the coverage they need at the best possible price and then work hard at keeping their driving record clean. A clean driving record will lead to better car insurance rates down the road, often in just a few short years.

How much it will cost to buy first time car insurance is also something new drivers have to keep in mind when shopping for their first car. If their parents aren’t buying it many teenagers manage to save for years so that they have a decent amount of cash to spend on their first (often used) car . One look on Craigslist or on the lot of the local used car dealership may show them that they can afford a sportier car than they thought and the temptation to go for it is huge.

However insuring such a car is quite another matter and one that the first time driver does not think about until it is too late and they have parted with all their hard earned cash. As any experienced car insurance buyer knows certain cars cost far more to insure than others and although you may be able to score a used Corvette for just a few thousand dollars insuring it will prove incredibly expensive for anyone who is buying first time car insurance. The smaller, more practical car might not be as exciting, but at least they will be able to afford to keep it on the road for more than a few months.


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