First Car Insurance

New drivers need their first car insurance policy before they can hit the open road. One of the main problems for teenage drivers, besides buying a car in the first place without an established credit history is getting auto insurance at a reasonable price.

Insurance policies are usually sky high for first car teenage drivers until they hit 25 years of age. This is when the price of most policies drop. Most teenage drivers also end up being a part of their parents' insurance policy, which mom and dad seldom enjoy.

But, whether paying out of one's own pocket or collaborating with the parents there are some things that teenage drivers can do to keep the cost of auto insurance down.

Compare the price of insurance policies online
Buy a 4-door midsize car rather than a sporty 2-door
Buy a cheap first car or a first used car rather than new
Use anti-theft and security devices on the car
If you have a job, use a fancier title for what you do
Add a named experienced driver, such as a parent to your policy
Don't pay for extras in the insurance policy
Consider dropping collision coverage on an older car
Pay your insurance premium upfront and for more months
Call insurance companies at the end of the month for a policy
Avoid modifying the car
Ask for the highest deductible you can afford
Ask your top list of insurance companies if they'll give a discount for a defensive driving class
Create and maintain a good credit history
Create and maintain a good driving history

Okay, so I've given you many bullet points to consider so let's move through them rather quickly. Comparing insurance policies online through comparison websites is a good place to start your research. Use ballpark figures and makes and models you're considering buying. Bookmark these sites for later.

Generally, 4-door cars are cheaper to insure than 2-door sporty cars. Think Toyota Corolla and not Camaro. Buying a cheap first car will cost less generally, though, buy one that is well maintained so it won't eat up your money in repair costs.

Buy a car with anti-theft and security devices already installed or install them yourself to help lower the price of the insurance premiums. Even a steering wheel locking device is better than no device at all.

Some insurance companies let you name another driver on your policy. Some teens will choose the parent with the optimal driving record as this can help lower premiums. Sometimes using a fancier job title will help insurance agents lower the prices they charge.

Sometimes insurance agents want to sign you up for extras like roadside assistance and windshield protection and other services. Compare the insurance company's roadside assistance to that of AAA or another reputable company. Also, some insurance companies will pay for windshield repair without a formal announcement, so find out which ones do.

Collision coverage for an older, cheaper car can add many dollars to the price of the insurance premium. Weigh for yourself whether the price of your car is worth the risk and extra money.

Many insurance companies charge more for monthly payments than they do for quarterly, bi-annual or annual payments. Choice the most cost effective option you can afford. Some insurance agents will cut you a deal in order for them to make their quota so be sure to call around at the end of the month, quarter, year.

Modifying a car can add personality to an otherwise sensible, dependable and boring vehicle. Going overboard with the mods, however, will drive up the price of the vehicle and hence the insurance to cover it. Keep the price of the mods to a minimum.

Many insurance plans offer a choice in deductible. The lower the deductible the higher the price of the policy. Choose the highest deductible you can afford to pay and consider the risk of being in a fender bender whether or not you'll have the cash to either pay for the repair or pay the high deductible.

Some insurance companies give discounts to young drivers who take a defensive driving course. Check around for companies that do and then check around in your area for courses.

Credit history plays a large part in getting a first car loan. It also plays a part in what you'll pay for your car insurance. Establishing and maintaining a good credit history with a gas credit card and a credit card from another large retail store will help teen drivers, over time drive down the cost of insurance.

Maintaining a good driving record will also result in lower insurance premiums over time. Accidents and traffic tickets may result in higher premiums, so it makes dollars and sense to keep your nose clean here.

These are the basics of first car insurance for new drivers. Now, get your car and policy and have fun.