New drivers (permit); what can save money on insurance?

Question

Okay, new drivers in the family (got the permit today). Of course, DMV rats you out to Allstate, and Allstate charges a ton for insurance (Arm + Leg). Oh, two new drivers. So I'm looking for ways to show good character to Allstate or find a cheaper insurance.

Now, I know some basic things about Auto Insurance:
A) Good grades (above 3.0 gpa) can get a discount from some insurers (usually 10%). Have this.
B) I drive a moderate car (not SUV or sedan). Good condition.
C) The car will be shared between 2-3 young drivers. Since they can't all be in the car at once, I imagine this could reduce costs.
D) No criminal record and no disciplinary file at school.
E) In the Fall, Drivers Ed is offered. I understand that it also can reduce costs
F) Parents are responsible drivers (low insurance)

Who tends to be cheapest with Auto Insurance? Am I wrong in any of the above statements, and is there any other factors that can save money? Where is the best place to get a quote?

Thank you!

OK, some info:
-Geico does not insure teen drivers. So that's out.
-The car is a 2001 Sports Sedan (Maxima).
-Allstate gives BS and only gives the discount for drivers ed, not grades or other stuff.

Answer 1

You have most of the basics down - obviously did your homework (but I could tell from your grades!)

So, the multiple young drivers may not be a good thing. Each of you can be in an accident alone - multiplys the odds.

It would help to "piggyback" on your parents policy and pay them the difference. It can be cheaper to insurance multiple cars under the same policy, rather than individually.

Also, if you have a short commute (one way) to school or work, that helps.

I have found that Mercury tends to be cheaper over all. I have used them in the past. I just switched to cover with our home owners policy which saved me money (it's the bundling concept -like above with multiple cars).

Good luck - and be safe.

Answer 2

Mercury Insurance Company. Sign up w/ them. If all other drivers are prop103 "good drivers" -(no more than 1pt in past 3yrs and no accidents w/ BI in past 3yrs and no majors ever) then the permit cov. is FREE. They will have you sign a form that states that the exclusion shall not apply to your son/daughter as long as they are following all the permit driver rules for your state. (Mercury doesn't write in every state, and these are the permit stipulations for CA). This permit cov. shall be in effect from the time you sign the permit form up until they get a license or until they turn 18 (whichever comes 1st). You have to be sure you sign up w/ Mercury Insurance company b/c they also have Mercury Casualty Co. and California Automobile Ins. Co. as part of the Mercury Group. The latter 2 do not offer the complimentary permit driver cov. Once your son/dh gets his/her CDL -Mercury rates are usually the best. And they do give the "good student" credit. They also have Homeowner insurance. You can save up to 15% off the auto policy by placing the Home w/ them. Also- they have random credits for bachelors degree in fields of Science or Engineering. And for teaching credentials. These credits will be off all drivers and cars- so that will help keep the ins. cost low as well.
Hope this helps!

Answer 3

To be a prop 103 driver you have to have had your license at least 3 verifiable years. Dont go with any of low risk Companies like Geico, AAA, Farmers, Allstate, and the likes. Any young driver regardless of clean record is considered high risk and most of these companies don't prefer this type of client and will charge accordingly. High risk companies will give you a better rate. Companies like Infinity, Western United, Safeway, even AIG will give better rates. Discounts are a gimmick, why are you going to go with a company that gives many discounts but are still more expensive than companies that don't. A young driver on a full coverage car will be expensive especially if the policy shows more that one full coverage vehicle they will be charged as if the young driver is driving all of the vehicles. It may be better to start a policy for each young driver and their full coverage auto. Bottom line look and all your options before you buy.

Answer 4

By the way, GEICO will insure you as a teenager on your parents' policy. I suppose that is your situation. In a sense, you don't have much choice in auto insurance. You just got to go on the same policy as your parents. It would be either impossible or prohibitively expensive for you to do otherwise.

You know a lot of the basics on how to save on insurance. But, here is the main one. Go for the highest deductible on your policy that your family is comfortable with. By doing so, you will save a bundle on premium.

Most standard insurance coverage are associated with a $250 deductible. They are also associated with pretty high premiums. If you increase your deductible to $1,000 you will most probably cut the collision component of your insurance premium in nearly half.

If your car is a few years old, and your family has some liquidity skip entirely collision coverage and get only liability coverage. You will save a bundle. Collision coverage is the more pricey component of insurance coverage. And, on an old car it may not be worth it.

Drive well, so you don't have to file insurance claims. If you drive well, and get involved in an accident you'll benefit from others collision insurance policy.

Also, never submit a claim you or your family can easily afford to pay. If you do so, the auto insurer will just raise your premium for the remainder of your life to recover their extra costs. These higher premiums, because of you being considered a costlier risk from the insurer standpoint, will cost you over time a multiple of the money you got from your claim.

Hope this answer was helpful and showed you valuable tips on how to save on your auto insurance. You are welcome to contact me through "Answer" for any clarification.

Answer 5

Safety features like airbags and stuff will reduce costs and having your insurance at the same place your parents have theirs so you get the multi-car discount will help reduce the bill on all the vehicles in your household. I would call the agent and ask him/her to tell you some ways you can save. Each company has their own way of doing things. I think they should give huge discounts for people that don't own a cell phone! lol

Answer 6

Your best bet is to call your agent and ask about ways to save money in this situation. If you think they're giving you some b.s. call around and see what other places have to say. You don't have to switch providers, just get different ideas for your situation.
Best of luck on saving money!

Answer 7

Try Geico or Progressive.com

I've never used Geico, but I did get a rate quote from them once that was really reasonable. Other than the ones you've listed I don't think there are too many more discounts. Good luck!

Answer 8

The quickest way for you to find the cheaper insurance is to find a local agent who works with A LOT of companies. You give him the basic information, let him know what your budget is and the coverages that you want. Give him a few hours and he'll find the right company with the right rate instead of spending hours on the phone yourself.