Last Updated on
Life can be unfair sometimes. You probably dreamed of owning a car since you’re 16 but you had to save for a few years and approached your parents to chip in for your new car. When you finally receive it, you realize there are expensive auto insurance premiums waiting for you. That’s when you start wondering How to Get Cheap Car Insurance for New Drivers Under 21.
As a youth, you need money to pay for your college tuition, buy textbooks, and have good times with friends. All these expenses require a constant flow of income. Signing up for a costly auto insurance plan will definitely affect your spending ability.
If you don’t want to borrow money in order to afford insurance payments, pay attention to the advice I’m about to share with you right now.
Further reading: How to Find a Cheap Car Insurance
8 tips on How to Get Cheap Car Insurance for New Drivers Under 21
Table of Contents
1. Build a decent credit score
Auto insurance companies determine your premium based on your credit score. Your credit rating consists of your credit limit and payment history. Auto insurance companies can tell whether you’ll pay your premiums on time by looking at your payment history.
If you currently have outstanding credit card debts, make sure you save up and pay them off. The same applies to any outstanding student payday loans. After clearing your debts, follow up with your creditors to ensure they report your debt as “Cleared” in various credit reference bureaus.
After paying off all your debts, it’s wise to steer clear of any credit for a period of 90 days before applying for auto insurance. Some creditors submit reports to credit reference bureaus after 90 days. That’s when you’ll notice an improvement in your current credit rating.
Read about the 8 Credit Habits to Start in 2018
Even pedestrians know that auto insurance companies determine how much you pay based on the value of your car.
If you want to spend less than $200 per month on auto insurance, you need to buy a modest car. One that has a modest engine ranging from 1,000-1,300 CC. This is enough to travel conveniently around college, home, and work. Another huge advantage of purchasing a modest car is you save a lot of gas money.
You don’t need to apply for a car loan in order to buy a vehicle with a 1,000CC engine. A used car in this category costs from $5,000-$8,000. If you save $500 a month for the next 10 months, you’ll be able to buy your car without requiring an auto loan.
3. Become an excellent college student
Have you ever heard about the Good Student Auto Insurance plan? Each year, auto insurance providers reward academically brilliant college students aged below 21 with cheap insurance quotes. The lucky student should have a minimum cumulative GPA of 3.0 and completed at least one academic year.
Take some time to visit a few car insurance companies to find out whether they offer Good Student Insurance covers. Some auto insurance providers have slightly different programs that have additional requirements. For instance, they only provide this cover to full-time college students.
4. Join a local Drugs and Alcohol awareness program
Auto insurance companies usually reward responsible drivers with lower insurance quotes.
When you look at motor vehicle accident statistics, DUIs rank in the top three causes for road fatalities. In most cases, the culprits are aged from 18-30 years old. Auto insurance companies use these two statistical facts as sufficient reason to impose high insurance quotes on drivers in this age bracket.
One way you can avoid this stereotype is by joining an active drug and alcohol awareness program in your city. These groups consist of sober members who actively fight drug and alcohol addiction for the benefit of their communities. Becoming an active member will convince your auto insurance provider that you are a responsible driver who stays sober always. This qualifies you for a more affordable auto insurance plan compared to your peers.
5. Avoid installing flashy car accessories until your income improves significantly
As a young car owner driving in the 21st century, you feel the pressure to stand out on the road. You probably have a friend who’s becoming increasingly popular in college because their car has edgy body art and flashy chrome rims. After a week, another close friend tells you of their plan to purchase a car spoiler and get some tinted windows. This peer pressure can force you to get car accessories even when you didn’t really want them.
Auto insurance companies will adjust your insurance quotes based on the accessories you’ve installed in your car. Spoilers and window tints lead to higher auto insurance quotes. Why? Because companies believe that enhancing your car’s aesthetics makes it more attractive to thieves. The same applies to graffiti and conspicuous body art.
6. Request for a car BlackBox
An Electronic Data Recorder (EDR) or car BlackBox can really help you get cheap insurance quotes. Auto insurance companies use car BlackBoxes to monitor the driving habits of their clients. This device records your speed, routes, and periods spent behind the wheel.
All auto insurance companies offer lower quotes to customers who install a BlackBox because it’s an indicator of responsible driving.
7. Request for a pay-per-mile insurance cover
How does this plan work? An auto insurance company offers this affordable plan to responsible car owners who drive less than 200 miles per month. Each premium consists of a flat fee and the car owner pays a specified rate for each mile covered in that particular month.
You can request this plan after purchasing and installing a BlackBox.
8. Enhance your car’s safety
We know that the types of car accessories you install can either increase or decrease your current auto insurance quote. One way of enhancing your car’s safety is by installing a good car alarm system. You’ll receive a lower auto insurance plan because you’ve implemented measures to lower the risk of auto theft or burglary.
Implement these 8 tips to get cheap car insurance today!
There’s no benefit in paying expensive auto insurance quotes. It will not improve your credit score. This is why you should do the right thing by window shopping for a more affordable auto insurance provider. Make sure you ask whether they provide Good student and pay-per-mile insurance plans.