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Factors affecting young drivers and tips that can help keep premium down. Part 2


The 2nd part of this blog is going to help you with insight and tips on when you can expect a lower premium and/or things you can do to maximize your dollar for coverage. When it comes to age related aspects of insurance rating, here are a few things that can change your premium for the better:

Experience: the longer you drive, the more experience you get under your belt. As you become more seasoned and responsible in the driving world, you will learn safe & defensive driving habits and how to quickly react in case of trouble. Typically rates will start to decrease over time as you continue to drive without tickets and/or accidents. As you get older you will no longer be rated as a youthful driver, usually when you reach the age of 25.

Life Events: There are certain stages and milestones you reach in life that can impact your rates. Getting married can qualify you for some of the best discounts available, as well as buying a home.

If you do have a claims or violation history, all is not lost, practicing safe driving and continuing to move forward without tickets or accidents can start to encourage decreasing premiums after you are 3-5 yrs out.

Maintaining insurance coverage without and gaps or lapses shows the insurance company that you are responsible and can lead to more desired rates, as well as an on-time payment history and building your credit.


Things you can do now to help your rates:


Good grades, if you're a student, can make you eligible for the Good Student Discount with most insurance providers. If you are a college student and are away at school there is another possible discount. Please check with your agent for qualifications on the different requirements to see if you qualify.

Choosing your vehicle wisely could lead to lower rates. Opting for a reliable vehicle with great safety features and avoiding high theft, high end, and high performance vehicles can all result in a more sensible rate.

Increasing your deductibles can be a quick and easy way to bring down higher premiums. These are out of pocket costs so be sure the deductible amount is something you would feel comfortable paying in the event of a claim. Higher deductibles lead to lower premiums. You may also be able to remove all coverages aside from liability if you are not legally obligated to have it and you are comfortable with the value of the vehicle or repair parts being paid out of pocket. Your agent can help you decide what is best in terms of premium, coverages, and financials so you can make sure that you have an educated influence on the outcome of the final terms.


Bundling policies can be another way to save money on rising premiums. Maintaining your multiple policies with the same carrier will provide you with additional discounts, depending on the line of coverage you need. Bundling policies can be one of the biggest ways to save on premiums.

Shopping around to compare quotes with multiple companies can help you find the best rate for your coverage. Insurance rates can vary greatly between carriers so it's essential to get multiple quotes. An independent agent can do the shopping for you and cut down on a significant amount of time and energy that it takes to call multiple carriers.

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