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By Tammy Gravis

3 ways to lower cost of insurance for new driver

When you first start to drive, this can be a very exciting time in life for you to experience and enjoy. Being independent and going where you want to go is sure to make life more interesting. However, one cost that you will strongly need to consider is auto insurance. This can be extremely expensive because you're an inexperienced driver. Insurance companies will consider you to be a high-risk driver until you have been driving for some time without getting a traffic ticket or being in an accident. By knowing specific things you can do that will your reduce your auto insurance premium these can be helpful to you.

Purchase a used Car

The price of your insurance is based on varying factors. Some of these include not only your inexperience when it comes to driving, but also the type of car you insure.

This makes it extremely important for you to choose an older car that has a lesser value. Doing so may enable you to get a liability only policy, and this can drastically reduce the cost of your auto insurance.

Get on your parents' policy

One of the ideal ways to enable you to get insured for less is by getting placed on your parent's insurance policy. This is due to the fact that your parents may have been insured with this insurance company for a long time, and there is a substantial discount that may be offered to you.

Additionally, by getting insured through your parent's policy, the insurance company has the peace of mind in knowing the bill will be paid. On the other hand, if you were to try to get insured on your own, it's likely your credit score would play a huge role amounting to your annual insurance. The chances are high that you may not have had the opportunity to build up a decent credit rating.

Include a high deductible on your policy

You will want to put the highest deductible possible on your insurance policy when you're a new driver. This can reduce the overall costs of your insurance and enable you to have still the coverage you need.

Insurance companies will provide lower prices because this is less money the company will have to pay for a claim when you have a high deductible. Keep in mind that this amount must be paid before any claim will be reimbursed that you filed due to damage to your vehicle. It's ideal to have this amount of money set aside in a savings or checking account in the event that you have to use it.

Getting your driver's license is sure to be a wonderful time in your life. The only downside for most new drivers is the cost of auto insurance. However, you will need this coverage to prevent a financial disaster from occurring if you're involved in an accident. Be sure to discuss with an insurance agent addition ways to reduce the expense that typically accompanies being an inexperienced driver.

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