How to Get Discount on Car Insurance for Minors

Driving across states is sheer fun, but that doesn’t go without responsibility which the US government imposes to every license holder through car insurance. Legally owning a driver’s license in the United States, unfortunately, doesn’t make it legally enough for you to drive unless you get yourself a car insurance to keep everything under control even at times of accidents and catastrophes. The additional premium to be paid may be tad hefty, but that can be an understatement if you are a first time driver – a minor.

Discrimination? No. It is a balancing act as critically weighed by insurance companies which is just natural when dealing with people who are more prone to accidents; thus, liability to car insurance companies. Price may vary according to the place of residence of the applicant, the brand and model of the vehicle being insured and its age, but those are the controlled variables. The biggest factor in pricing car insurance is the driver himself/herself, and that covers the capacity to drive safely as gained from experience on the road.

Getting insurance under the age of 21 is indeed a price to pay, but you don’t always have to pay extra bucks and in fact, you can even save more. How?

Every deserving person is bound for a reward; that includes teen drivers. The most common way to get discount on insurance is by earning high grade of at least B from an accredited driving school or from the driving exam itself. Most insurers give as high as 25% discount to those who excel on the steering wheel and gas pedal.

As driving experience is a critical determinant of an insurance policy premium, the number of hours you already spent behind the steering wheel can also pull the fee down. In case you were not given a talent to master the roads that well, you should still worry not. Graduated Driver Licensing Law states a mandatory 50-hour log with an experienced driver, but taking the extra mile of a formal driving lesson, albeit not having any distinction in terms of grade, can still get you at least 10% discount. After all, it is a win-win situation. That is, more safety for you on the road, thanks to experience and lessons, and less premium on the auto insurance, to your parents’ content.

Another way to avail discount on insurance is by maximizing the existing insurance policy of your parents. Insuring a teen separately is more expensive than enrolling one under an already matured policy. Savings may vary according to policy, but not all companies allow add-ons.

Most teens and their parents evaluate insurance policy options only after buying a car and qualifying for a license. But if you are wise enough, you will take it into consideration beforehand.

Nonetheless, if there is one sure way of lowering insurance rates for teen boys and girls, it is registering a car that requires smaller premium than those considered luxurious. The rule of thumb is: the cheaper the car, the cheaper the insurance is. But there is more to that rule.

Every insurance company holds a list of vehicles classified into two – the safer cars and the highly susceptible to trouble. The safer your vehicle is, the cheaper your policy can get. Safe cars are those that are easy to manage, low maintenance, ergonomically designed and are not statistically prone to accidents and stealing. The troublesome cars, on the other hand, are the ones often recorded with mechanical and electrical failure resulting to accidents, hot cars that are statistically, frequently stolen, high performance cars that include luxury vehicles and race cars and those that are more expensive to repair.

Whatever the car insurance price for minors is, the most important thing to consider in choosing a company to which you will trust your security is still the coverage and proven track record in paying their members. Saving on premiums is the best perk if the policy itself is worth paying for.

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James Henry Abrina is an editor, writer, SEO specialist and currently a Corporate Communication Professional, Market Desk Strategist, Business Development Officer and Unit Head for Business Profiles Incorporated.

He currently specializes in security management and business intelligence. Together with the company, he advocates Business Continuity Planning to change how the Philippine business sector sees the definition of crisis response and management.

For more useful information, read his articles at Triond and Masscom Tutor. Or his EzineArticles page.