Here are some common car insurance mistakes made by young drivers:
- Not shopping around and comparing quotes. Young drivers often just go with the first insurance company they find, without shopping around and comparing quotes from multiple companies. This can lead to overpaying for car insurance.
- Not taking advantage of discounts. Many insurance companies offer discounts to young drivers, such as good student discounts, driver’s education discounts, and safe car discounts. Young drivers should be sure to ask their insurance agent about all of the discounts they may be eligible for.
- Raising their deductible too high. In order to save money on premiums, some young drivers raise their deductible too high. However, it is important to make sure that you can afford to pay the deductible if you have an accident. If you raise your deductible too high and then have an accident, you may not be able to afford to pay the deductible, which could lead to financial difficulties.
- Not adding their parents to their policy. As mentioned above, adding your young driver to your existing policy is usually the cheapest way to insure them. If you have a good driving record, it is likely that your young driver’s rates will be lower if you add them to your policy.
- Not reporting changes to their insurance company. If your young driver has a change in their circumstances, such as getting a new job or moving to a new city, they need to report this change to their insurance company. If they do not report the change, their insurance company may not cover them in the event of an accident.
Here are some additional tips for young drivers to avoid making common car insurance mistakes:
- Be honest with your insurance company. When applying for car insurance, be honest with your insurance company about your driving record and other relevant information. Providing false information could lead to your policy being canceled or your rates being increased.
- Read your policy carefully. Once you have purchased a car insurance policy, be sure to read it carefully so that you understand what is covered and what is not covered. If you have any questions, contact your insurance agent.
- Pay your premiums on time. Paying your insurance premiums on time is important to keep your policy in effect. If you miss a payment, your policy could be canceled.
By avoiding these common mistakes, young drivers can save money on car insurance and protect themselves financially in the event of an accident.