A Teen Driver’s Guide To Car Insurance

If you're a young driver, you've likely spent lots of time thinking about your perfect car. What you may not have spent as much time thinking about is your insurance options once you have your car. Navigating labyrinthine insurance paperwork can kill the buzz of a car purchase for new drivers quickly, and the hefty insurance bill even more so. Unfortunately, teen drivers tend to feel the heavy end of the hammer when it comes to insurance premiums. The good news is, there are some tips for keeping your insurance costs down as a younger motorist. 

Start with the car
The easiest and most basic way to keep your insurance bill down is to choose a car that doesn't come with a conventionally high cost to insure. Some of the factors are fairly obvious – for example, more expensive cars, and cars with lower reliability and safety ratings, tend to carry a higher price tag when it comes to insurance. But other factors can play a role as well, such as how likely your car is to be stolen – a statistic that the National Insurance Crime Bureau tracks on its list of Hot Wheels, Edmunds reported.

Educate yourself
A little time spent in a classroom can go a long way in saving money on your insurance bill. According to Edmunds, taking an official driver's ed course can save you up to 10 percent on your insurance premiums versus going it alone. Once you have your license, you can continue to trade study time for insurance discounts. Many providers offer money off to drivers who attend save driving courses, and there are several that target teens and younger drivers specifically. 

Even studying hard at school can pay off for you. According to Kiplinger, some insurance providers offer discounts to student drivers who keep their grades up above a B average.

Cut out what you don't need
It's true that insurance is buying yourself peace of mind, but it's also important to be realistic and economical to avoid paying through the nose for unnecessary services. Kiplinger recommended doing away with more advanced coverage options such as collision coverage – many older cars are worth less from insurance than what you'd pay for the premium anyway.

If you're shopping for a used car, head to NJ State Auto Auction. You'll find hundreds of Carfax-certified cars, as well as an in-house finance team dedicated to helping you finance a high quality used car.