Best Car Insurance For Young Drivers

Questions and Answers

Your Questions About New Driver Car Insurance Rates

May 29, 2013

Mandy asks…

Why does car insurance never get cheaper?

I’m getting older, my car is worth less each year, I have accrued 9 years plus NCB and have never caused an accident in 15 years, yet each year my insurance goes up, and those things that used to be included ( hire car, accident insurance etc) you have to pay extra for.
I am fmailiar with comparison sites, but WHY does my insurance go up despite me being a safe driver and a car that depreciates each year?
Eddy T I’m 37 LOL!

Administrator answers:

It is like this, the cost of living goes up every year. Rates for property and casualty insurance (this includes auto, home owners, and the like) are adjusted every year. They are figured out by people who are educated in the field of actuarial science and other such fields. In the US (and I expect in many other countries) there are bureaus that are over seen by the federal government that figure out rate tables. These bureaus set minimum and maximum rates that can be charged for insurance coverage. The individual companies then decide what they are going to charge for their insurance based on the tables.

Since the cost of parts to fix an auto goes up every year, the insurance has to charge more to cover for the fact that they will be paying more for the parts when there is damage done to an auto. Since people want pay raises every year so that their pay can at least keep up with inflation, it costs more for labor to fix the damage to the auto. When the make rates to charge for insurance, they have to figure out how much was paid out in the past, how likely it is that this will continue in the future, how much costs will increase, et cetera. You may be an excellent driver, and you may not be contributing to the incidence of traffic accidents much, but others are. And everyone who gets a pay raise is contributing to the rate of inflation, and therefore, contributing to the increased cost of insurance (at least indirectly.)

Steven asks…

How much does it cost to rent a car?

7 day car rental is what I need (for a vacation). Im 21 if age of the person renting makes a difference. How much will it cost to rent a car? This will be my first time renting a car. Idk what kind of car I will rent but I don’t need anything fancy. Just enough to fit 3 people and as long as the car works. Im not picky lol.

Administrator answers:

Prices do vary by location–city, airport, etc.

Here are some of the quotes from Enterprise for my area (Mobile Bay area in Alabama) for available rentals for 21 to 24 year old renters for 1 week (May 10 to May 17):

Economy Car (Chevrolet Spark or similar)–$307.19
Compact Car (Nissan Versa, Toyota Yaris, or similar)–$313.57
Intermediate Car (Toyota Corolla, Nissa Sentra, or similar)–$325.62
Standard Car (Chrysler 200 or similar)–$337.35
Full Size Car (Chevrolet Impala, Nissa Altima, Dodge Charger or similar)–$347.75
Intermediate SUV (Ford Escape, Jeep Liberty or similar)–$475.51
Standard SUV (Jeep Grand Cherokee or similar)–$496.86
(Other classes of vehicles not available due to age restrictions or availability at the location.)

Some other companies may rent to 21-year-old renters. You will have to call them or visit their websites for their policies. You will be paying a higher daily rate for the rental. You will not have access to the entire fleet of vehicles. You must have a valid driver’s license, credit card and insurance on your personal vehicle. If you do not have a credit card, some companies will accept a debit card, but will place a large “hold” on your account. If you do not have a personal vehicle, or your personal vehicle does not have collision coverage with the insurance, you will be required to purchase coverage for the rental.

Nancy asks…

Does one need to take a motorcycle rider training course to get an M2 driver’s license?

I have heard different things and can’t seem to get a clear answer. I am 18 years old and have never had any driver‘s license before. I want to get my M2 to drive a motor scooter to and from school but don’t know if I need to take a motorcycle rider training course. Thanks in advance!
I should also mention that I live in California.

Administrator answers:

Yes you do. All applicants UNDER 21 must do as follows to be fully licensed for an M1 or M2:

“”If you are under 21, you must complete a motorcycle rider training course given by the California Highway Patrol (CHP) and provide a certificate of Completion of Motorcycle Training (DL 389) to DMV to be issued your license. You will not be required to take the motorcycle driving test at DMV if you currently have a California Drivers License”"

it is important to note you DO NOT need to do this to obtain a learners permit. A learners permit will allow you to ride during daylight hours, without a passenger, and no freeway riding allowed.

I believe you can obtain a learners permit without a regular drivers license, but as you can see you will have to complete and pass both a motorcycle training course AND take the motorcycle driving test at the DMV to obtain a full M1 or M2 license.

If you have a regular passenger car license, passing a DMV approved MC training course will grant you a waiver for the DMV skills test, which can be challenging for even experienced riders. Also, since an MC license is most commonly given as an “endorsement” on a passenger car license and not a “stand alone” license, if you get it suspended or revoked don’t expect to qualify for a regular passenger car license, either. In California if you get a DUI, reckless driving suspension, etc, on a motorcycle and lose your M1, you lose your Class C, too. This prevents dangerous drivers from jumping back and forth from car to MC, as in “well i can’t ride my bike, i will just drive my car!”

personally i think it’s best to get a car license first, and then get an endorsement. Although i do not believe the state can prevent you from getting an MC permit or license without one, you have to jump through additional hoops. And insurance rates may be affected. As it is, you have to do ALL the written testing, same as for a car. So you may as well borrow one or rent one or whatever you have to do and get your Class C first. Or at least during the time you have your MC learners permit, so when you do apply for your full M1/M2 license you’ll have less to do and prove to obtain it.

Also, since you are under 21 and the requirements are stricter, you may as well go ahead and apply for your M1. I mean the requirements are the same, and you may have to have one to ride your “scooter,” anyway. Look at this chart:

http://www.dmv.ca.gov/motorcycles/motorcycles.htm

so as you can see, your little “scooter” may in fact be a “motor driven cycle” and require an M1 unless it’s a moped, cannot exceed 20mph, or is that little thing you stand on :(

Richard asks…

How much do you pay for car insurance?

I have two cars and both are fully comp – costs about £45 a month for cover for myself and my husband

Administrator answers:

£113 per month. Full comp. Been driving for 4 months. Car is 1.6 letter.

£45 is very very good rate.

I am the main driver on that car, the policy also covers two other named drivers on my policy.

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