The auto insurance providers look at several things before deciding the kind of policy that suits a particular driver and more importantly, the amount of premiums they will pay.
Believe it or not…
Drivers getting car insurance for the first time, especially those aged above 25, are categorized specially and need to be well conversant with a few things for them to get a cheap car insurance.
Table of Content
- What First Time Drivers Need To Know Before Purchasing A Low-cost Car Insurance?
- How Much Insurance Do You Need?
- How Much Does Insurance Cost For First Time Drivers?
- Does Insurance Rate Start To Drop After 25?
- How To Save Money On Insurance For First Time Drivers Over 25?
- Finally, How To Get Free Quotes?
What First Time Drivers Need To Know Before Purchasing A Low-cost Car Insurance?
Shopping for auto insurance blindly is a terrible mistake that most first-time car owners make. The market is full of witty brokers and insurance carriers, and if you do not have a rough idea of what you want, you could be shortchanged.
Usually, the insurance carriers determine their policies based on a couple of risk factors (in reality, quite a few).
- The first risk factor that comes into play is the age. The age factor is different between men and women as men tend to have better rates as they age while women have better rates as the age goes down.
- The other factor that you need to know is the marital status. Insurance carriers offer better rates for people who are married, especially for men, since married people tend to have fewer accidents when compared to single ones.
- Your location has a significant effect on the rates an insurance carrier will impose on you. If the place you live experiences frequent accidents, the rates are likely to be higher.
- Densely populated areas mean that there is an increased risk of theft, collisions, and accidents and thus higher rates may apply.
- Insurance companies check one’s credit score when determining the policy. Having a lower score is disadvantageous as it implies that your rates will be a bit higher.
- Your job is an essential factor that insurance firms take into consideration. Taking an example, journalists are usually on the move, and their frequent travels make them more vulnerable to road accidents. On the other hand, pilots who are always on air and just drive from the airport to their homes are likely to get better rates.
- Your car type is another important consideration as it affects the likelihood of an accident. People with cars that have an excellent safety rating get better rates. Bigger cars are also considered to be safer and owning one gets you better rates.
Selecting the perfect car insurance for new drivers is a mind-boggling matter since it is a decision that is affected by several factors. Usually, an auto insurance is a collection of different covers that protect you in different ways.
- The liability coverage compensates anything that is affected by the accident that has been caused by you.
- The Bodily injury liability cover caters to the people injured in your car during an accident.
- The property damage liability covers the damage to the other vehicle if you are at fault in an accident.
- The personal injury protection policy covers the medical expenses of the people in your car and may cover for the wages lost if the crash affects your work schedule.
All states have their minimum requirements, and you need to check with your state before buying a cover.
The personal injury protection is not necessary if you already have medical insurance in place and in such cases purchasing the bare minimum is enough.
However, you should make sure that you have enough cover against uninsured and underinsured motorists as it will help cater for the costs your medical insurance won’t cover in the event of an accident.
How Much Does Insurance Cost For First Time Drivers?
Typically, the best car insurance for new drivers over 25 is higher than the standard amount due to a couple of factors that increase the premiums.
Insurance carriers look at one’s driving experience and being a first timer; it is evident that one’s lack of experience means that they are more likely to cause an accident. However, the rates start dropping as age advances, and married individuals are more likely to get a subsequent decrease in the rates.
First-time drivers aged 25 pay about $750 (average) state minimum liability and the rates may vary depending on the state and policy purchased.
Does Insurance Rate Start To Drop After 25?
Looking at the car insurance for 25 years old, it is evident that the mentioned age is a strategic one that signifies the transition from one stage of life to another. Insurance rates start dropping after 25 due to the age factor that is used when calculating the risk factor.
The teenagers are regarded to be the riskiest group of people and as one starts advancing in their twenties, the risk of causing an accident reduces. This is why the rates start reducing from the age of twenty all the way towards thirty.
Some people get married at around the age of 25 (did you?), and their risk factor lowers, resulting in decreased rates for them.
How To Save Money On Insurance For First Time Drivers Over 25?
While the rates may be against you, it is still possible to play around and get cheap car insurance for drivers over 25. After knowing the risk factors carriers use to calculate the premiums, you could work on a few of them and get an affordable car insurance.
- First, pick one of the cheapest cars to insure. All vehicles have been placed in different car groups depending on their safety ratings. The most affordable to insure belong to group one to five and ensure you buy a car within those categories for you to get the best rates.
- Avoid car modifications at all costs as they only add up to the insurance rates. These changes increase the value of the car, and insurance carriers will charge higher premiums for such cars.
- When buying an insurance policy, drivers have the option of purchasing an annual or monthly cover. It is way cheaper to buy a full year cover as opposed to the monthly which may seem attractive but turn out to be costly in the long run.
- Lastly, consider beefing up the security of your car by installing an alarm or any other device that will limit the risk of theft. Insurance carriers look at these features and might reduce your rates if your car is well secured.
Finally, How To Get Free Quotes?
The issues related to insurance for 25 years old people have been well explained, and it is possible for them to get cheap car insurance.
Today this is easier to compare the rate and get free quotes online. All you need is to click here and see what the most reputable insurance providers have to offer in your location. This should help new drivers of over 25 years in getting an affordable premium.