Are you under the age of 25 and do you also find it incredibly expensive to take out a car insurance? Many get their parents to take out their car insurance for them, but read on here so you don’t get a rap over your fingers should you get in accident.
Can the insurance be in the name of my parents?
Due to your parents’ acquired seniority, it may seem like a golden solution that they take out your car insurance for you. You probably think they can get cheap car insurance and you can therefore save a lot of money by doing so, but here you have to pay attention to a few things.
First and foremost is to do you a huge bear service if your parents write your car insurance in their name. It is always difficult to get started with a car insurance because the first one will always be very expensive. However, this applies no matter how old you are, so you might as well bite into the sour apple right away.
The second, and moreover, primary reason why it is a really bad idea to have your parents take out your car insurance is that it is illegal. If you are the car’s primary user yourself, you will be in big trouble if you have to do an injury. The trick, which will probably save you a lot of money, can result in big fines or a possible prison sentence.
Your age matters a lot for the cost of your car insurance
The insurance companies assess you as young as long as you are under 25 years old, as in that case it is not very long that you have had your driver’s license. The reason for this is that it is precisely, among other things, your driving experience that is emphasized when determining the insurance company price of your car insurance.
As a young person, you are typically considered a greater risk to the insurance company, as young people under the age of 25 are, statistically speaking, at more accidents than any other age group. Unfortunately, this applies to both minor injuries and more serious accidents. Why the statistics look the way they do is obviously difficult to answer, but the typical explanation is that young people are quicker to overestimate their own skills behind the wheel.
This particular statistic and lack of seniority is of great importance to the cost of your car insurance. Precisely seniority matters a lot when determining your price, and this of course you have had difficulty earning when you have not driven a car for a long time. The seniority is calculated in the number of years you have driven and the number of injuries you have previously done. This is exactly why it can be tempting to have either mom or dad take out the insurance for you, but be careful with it.
Here’s how to find a cheap car insurance as a young person
In addition to age and seniority, there are a number of factors that insurers use to determine the cost of your car insurance. These include which car you choose to insure where in the country you live and the size of your deductible. If you want to make your car insurance cheaper, you can make some strategic decisions when you know what helps determine the price.
Choose a small or used car
The value of the car you want to insure, as well as the car’s horsepower, are included in the overall risk assessment. If you buy a small city car with less than 75 hp, there is a lot of money to save, as this poses a lesser risk in traffic. If you want to save a lot of money, you can consider buying an old used car, the value of which is so low that you can save the hull insurance away, and just have the liability insurance that is statutory.
Choose a high deductible
If you consider that there is only a very small risk of injury, you can choose a high deductible. The higher a deductible you choose, the cheaper the insurance becomes, and since the deductible only has to be paid in case of any accident, there can be a lot of money to save. Of course, this is not the case if you often do injuries as you end up paying your deductible many times a year. In this case, it may be better to choose a car insurance with a higher annual premium, but with an insurance company that does not raise the price every time you report an injury.
You can negotiate the price down
Many people think that the price they can find on the insurers’ website is the final offer they can get. This may not always be the case and you may want to ask for a further discount when contacting the insurance companies. Many insurance companies also offer collector discounts, which means you can save money by pooling all your insurances with one insurance company.