Insurance is one of the most essential elements for protection of the car and driver. In the world full of uncertainties, car insurance provides security. State laws have made car insurance mandatory. Car insurance is of various types. It differs from country to country and is also subject to different factors that are associated with market trends. One must understand how insurance premium is calculated and how to acquire car insurance on budget. Here, are few tips that can educate the new drivers on the factors that influence car insurance.

Car Insurance For New Drivers

Insurance companies consider the age of the driver or the applicant while calculating the premium. Thumb rule is that younger drivers pay higher premiums. Market trends reveal that most of the road accidents involve teenage drivers or young drivers. Applicants below the age of 25 may pay higher premium due to the market trend report. One must note that the premium amount may reduce as the time progress. If one is trying to insure a sports model, then he may need to pay a higher premium as compared to regular models. Insurance companies levy high premium amounts on expensive cars, as they are prone to thefts. It is best that new drivers stick to second hand cars or buy economical cars. Another aspect that insurance companies take into account while calculating the premium is the security features. Car that are enabled with modern security features like burglar alarm, geo-fence, GPS or Non GPS based security trackers tend to have lower premiums. One needs to understand that insurance is a protection cover of the car. Insurance companies will assess the security features, and stability of the driver while calculating the premium.

If the car is at higher risk of theft or accident then, the car owner will need to pay higher premium. Interestingly, car accessories also influence the premium amount. If the car is equipped with latest accessories, then it is more vulnerable to theft hence it falls under high-risk category. New drivers must ensure that they have passed the driving test with a satisfactory score. Clean driving records help in lowering the premium amount. One must be extra cautious while buying a classic or expensive car as it may be difficult to find apt insurance cover for the same. It is best to research online and get quotes from multiple companies before making the final decision about buying the car insurance.

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