While teenagers are thrilled by the thought of getting a driver’s license, parents are plagued by the financial burden of the expensive first time driver’s insurance. Undoubtedly, the best way to insure your first time driver is to add them onto your existing auto insurance policy. Continue reading for information about the good, bad, and ugly of insuring your first time driver.
Reasons to Add Your Driver to Your Policy Proof of Insurance
Since first time drivers do not have previous auto insurance, they will pay a significantly higher rate of insurance and technically be considered uninsured drivers. Without proof of insurance, you will be forced to pay a much higher premium to start a new policy. However, when you add your new driver to your existing policy, you can avoid the new policy charge realize an instant monthly premium discount.
Discounts
In addition to lower monthly premiums, you will have access to many more discounts. While first time drivers will rarely ever own their home or several vehicles, guardians of first time drivers commonly will. As a result, guardians of first time drivers can gain access to various insurance and bundling discounts.
Minimum Down Payment
When you add your first time driver to your existing policy, you will have a lower down payment than if you were to start a new policy. Additionally, the increase in premium will be typically added to the next billing cycle.
Starting a New Policy for First Time Drivers
In some instances, adding a new driver to an existing policy may not be an option. If you are looking to establish a new policy for a first time driver, you will most likely pay higher rates for the following two reasons:
- Since teenage drivers have little driving experience, insurance companies will charge substantially higher rates.
- Teenage or first time drivers do not have insurance history, which means they are technically uninsured drivers and will pay a higher rate.
First Time Driver Insurance Tips
- Shopping around should be an essential practice when you are making a major purchase, especially when you are shopping for a first time driver insurance policy. Make sure you get several different quotes to find the cheapest rate. You should search for companies specializing in higher risk policies. These insurers will be more prone to offer more competitive rates.
- Search for companies offering several different quotes from various insurers. By getting multiple quotes in one stop, you will save a significant amount of time.
- Paying your policy in full can qualify you for discounts. When you do pay in full, you are showing your insurance company your commitment to having insurance.
- Shop in six month periods. Once you have established insurance for six months, you can begin looking for a cheaper rate, which you will have earned for having continuous insurance.
As one of the important prerequisites for driving and entering adulthood, your first time teenage driver must be insured. If you are the first time driver, you will find that getting help from your parents, guardian, or other insured family member will be the most advantageous situation. However, if you aren’t afforded this option, you must start your own policy. While starting your own first time driver insurance policy is doable, it is undoubtedly more expensive. In this case, you should keep in mind that there is a light at the end of the six month tunnel. After your six month trial period is over, you will no longer be considered an uninsured driver and will have proof of previous insurance. As a result, you will have access to significantly lower insurance rates.
First Time Driver’s Education and Insurance Discounts
Looking for other ways to help you and your first time driver save money on your insurance premiums? Research state-approved Driver’s Education Courses, like the Drivers License Direct by IMPROV. A Driver’s Ed course can help your teenager become a safer, more aware driver and aid them in obtaining their first license. A successful completion of the drivers prep course can also save you money on your auto insurance. Contact your auto insurance company and learn how taking an online Teen Drivers Ed Course can help lower your rates.
