First time drivers typically pay higher insurance premiums than experienced drivers. Pricing can therefore be quite a shock if you’re a new driver, buying and insuring your first vehicle. Your inclination may be to find the cheapest possible insurance and buy the least possible coverage, but that may be a big mistake. Here are some auto insurance tips for new drivers, which will hopefully help you make better insurance decisions.
1 – Go With a Low Deductible
Deductibles are what you pay out-of-pocket if an accident is your fault. As a new driver, you’re likely to make mistakes. Although a higher deductible may save you money each month on insurance, it will cost you much more if you get into an accident. Let’s say you’re offered deductibles of $250, $500, or $1,000. If you were in an accident today, could you afford to pay $1,000 to get your car fixed? If not, then you might consider a lower deductible.
2 – Don’t Assume Insurance Rates Reflect the Vehicle Price
As you’re shopping for a car, one of the most important auto insurance tips for new drivers is to get an insurance quote. Buying a more expensive car doesn’t mean that you’ll pay a higher insurance premium. There are many factors that contribute to rates. Some cars are reasonably priced but have high theft rates. That results in higher insurance premiums. Before you commit to buying any vehicle, request an insurance quote. Only then can you accurately estimate the cost of owning that vehicle.
3 – Be Careful About Loaning Your Car to Others
As a new driver, you probably know a lot of other new drivers,… some of whom may not have their own cars yet and ask to borrow yours. When you loan your car to others, you’re not just trusting them with your car. You’re also trusting them with your insurance since your insurance policy will apply to any accidents. Additionally, if those individuals get injured while in your car, they will likely sue your insurance (and possibly you) for damages. Too many claims, even from guest drivers, can also drive up the price of your insurance. Think twice about loaning your car to others unless it’s an emergency.
Other Auto Insurance Tips for New Drivers
Massachusetts is a competitive insurance state, so be sure to shop around for rates. The lowest rates are not always the best. Pay attention to the reputation of the company and the length of your policy. 3-month policies, for instance, only lock in the quoted rate for 3 months. Some companies are known to offer low premiums for short time frames so they can dramatically increase them later. Selecting a longer policy (i.e. 12 months) can help you better budget your expenses for the year. For assistance with your Massachusetts auto insurance policy, request a free quote right on our website or contact our team for assistance.