Business — March 2, 2020 at 10:17 am

A Beginner’s Guide to Car Insurance


After learning how to drive, getting your own car is the next step to your road to freedom. However, there are plenty of things a new driver might think about upon owning a car. Getting car insurance might not be one of the top things that pop into mind.

Generally, car insurances are costly especially when you want to get the right kind of coverage. However, there are several ways wherein a new driver can save on cost in getting insured. Here are the options for new drivers when getting insurance for the first time and some benefits they could have when being added to an existing policy.

Being Added to an Existing Policy

Most likely, new drivers are related to someone who owns a car insurance policy. It could be a parent, grandparent or even a guardian. Being added as a driver on an existing insurance policy helps you save in cost but gives almost the same protection for you and the car you’re driving. This is a perfect option if you want to be insured yet still saving up for the cost of getting your own insurance.

Since new drivers are considered as high-risk drivers, most car insurance companies ask for a higher premium rate for new drivers than experienced ones. When you’re added to an existing insurance policy, it serves as an instant discount on your account when you get your own insurance someday.

Aside from that, there is usually no or low-down payment if you are only being added as a driver on an existing car insurance policy. This is definitely a great perk since starting your own insurance policy requires down payment of 1 or even more than a month.

Shop Around for Insurance Companies

Most insurance companies ask for a higher premium or down payment for high risk or new drivers. However, there are still other companies who specialize in high risk insurance policies and give lower prices than others. Do some research or shop around and ask for quotes to find the best Bendigo car insurance company that will offer you the perfect rates.  

Do Full Payment

Lots of car insurance companies give their clients a discount if they pay a policy in full. Full payment means saving up for 6 months’ worth of insurance premium. Paying in full shows that you are committed to having a continuous and long-term insurance with that company that’s why they offer their clients discount as a reward. It may sound expensive, but it is definitely worth it.

Find Cheaper Rates after 6 Months

You may be paying higher premium rates as a high-risk driver. However, you can get a lower rate after maintaining a certain policy for 6 months. Ask your insurance provider if you can switch to other carrier type such as preferred to get lower premium rates.

Getting a car insurance can be challenging for first time drivers but with adequate knowledge about the different options you have, you can definitely find the best deal for you.

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