Auto insurance for young drivers, should you get a new car

January 5, 2012

Before getting carried away with pride and emotions and the additional discounts offered by the car dealer, you may need to look at insurance implications of buying a car for a teenager. No doubt auto insurance rates are really high as soon as you include a teenager in any policy.

Then there is the question of what sort of insurance and car he should get. According to statistics, car seems to be the most common birthday present for a youngster in America. It may seem to be an impressive present at the outset, but the implications of it must be thought of in advance. You would want to fully insure a brand new car and a youngster behind the wheel it may not be cheap.

It may make sense to give him a clunker as you would not worry about it getting scratched or bumped as longs as it does not involve third party cars, property and persons. You could insure it for only legal minimums. If you buy a brand new car and start claiming for every small bumps and scratches, you would not be doing any favors to anybody in terms of reducing auto insurance rates.

If he could manage to pass the first year without a claim, he could get substantial discounts even on a full cover and hopefully he has become much responsible driver in that time. Then you could look for a new car for his next birthday. But you should still check the insurance rating of the car you are buying.

You should still keep clear of the powerful or sporty cars for the sake of your child’s safety and car insurance rates. It might still be difficult for a teenager to handle a powerful car and he would certainly want to see what his new flashy car could do on the road. Furthermore, you would not impress any auto insurance company with that sort of car.

Considering the high premiums, you would want to shop around comprehensively for car insurance quotes. As the premiums are higher for young people, the discounts you would get would be impressive as well.

Filed under: young drivers — admin @ 11:58 pm

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