Student Insurance Policy – Tactics to Lower the Premiums

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Auto insurance is one of the biggest industries in USA, since every car that is driven on the road in USA must be insured. Every one shops around to get an insurance policy that does not have sky high premium rates. Insurance companies have very specific rules when they fix insurance premiums. These premium rates are different for every individual driver, and depend upon the requirements of individual drivers. Insurance companies charge higher premium rates for teen and college drivers than other drivers, based on the statistics they follow. According to the insurance companies, teen and student drivers are risky drivers than the others due to many factors.

Student drivers are drawn towards fancier car models, and high speed cars. This can increase the risk of accidents on the road according to insurance companies. Buying a car that is considered safe on the roads can effectively make up for the high premium rates charged by the insurance companies. Teen drivers and student drivers lack the experience that is required to drive very safe on roads. It needs experience to avoid making mistakes and avoid others mistakes as well on the road. Most of the young drivers learn by experience and this is the reason their premium rates are high for the initial years. Learning defensive driving lessons can help in reducing the premium rates, since it equips young drivers to avoid accidents. Insurance companies give discounted premium rates for drivers who produce a certificate of completion of defensive driving lessons.

Since it takes a while for student drivers to establish a good driving record, they can avail good discounts on their premium from the following year of their first policy. Another effective way to reduce premium rates until they gain good experience is to enroll as add on policy with a family member. The more number of cars insured the better chances of getting a good discount on premiums. Enrolling with the family is not only beneficial for the teen drivers, but can also help in getting discounts for other family members in the policy as well. Teen drivers can make the most of the discounts and establish a sound driving record in order to get a better policy.

Insurance companies have special discounts for drivers who keep the mileage of the cars within the set limits. Insurance companies have a predetermined mileage limit, and if the drivers conform to it, they qualify for lowest premium rates that the insurance companies can give. The idea behind this is the lesser the car is driven, the lesser it is exposed to risks of accidents. Teen drivers can use the car as little as possible, to keep the mileage in control and qualify for better premium rates. Reviewing the policies once every year is important to keep track of the necessities. Many insurance companies offer discounts every season, and if the policy is reviewed every year, the premium rates can be negotiated to reflect the current discounts. Having the necessary coverage is important, but the premium rates need not be very high in order to get the coverage.