If you’ve just got your driver’s license and are planning to buy a new car, a big thumbs up to you! But new drivers could face the prospect of high insurance rates. And that can be a scary prospect, especially if you’re still on a parental allowance or supplementing your income with after-school-hours/part-time work. Vehicle maintenance and running costs could add up to a tidy sum that leaves little for premium payouts.

So, why are new drivers saddled with high insurance rates? That’s because inexperienced drivers could cause more accidents. According to statistics released by the CDC, though teenage drivers constitute just 14% of drivers, they are four times more likely to be involved in auto accidents. Nearly a third of all motor-vehicle accident injury costs are incurred by teens.

According to regulations, apart from young students, the definition of “new” drivers could also include immigrants, older non-US residents, Americans who haven’t been behind a wheel for a length of time or have not purchased auto insurance in recent years.

Keep these tips for getting car insurance for new drivers handy when you’re shopping for rates.

Stay on Your Parents’ Plan
This could ramp up your parents’ plan by as much as $1000. If you live at home and are under the prescribed age bar or you’re on campus, you could get coverage from them. The downside is that your vehicle would have to be registered in their names.

Study Harder
Sounds strange? The fact is a higher grade-point average and perfect attendance can help you negotiate at least 10% discount on rates. So, better greades will give you better coverage!

Do Thorough Research
Look for smaller insurers who offer cheaper rates to new drivers. Although these companies may not be the big name ones, they may have special rates for your category. Rates are lowered for the 25-55 age group. Review your credit score, and if you live in a high-crime area, move out!

Type of Vehicle
Young kids would prefer to pick up a cheaper used car, but you should know that insurance rates are lower for vehicles that have new safety features such as modern seat-belts and stability control. If you purchase a speedster sports car, you’d find yourself billed higher rates than if you bought a more practical, ordinary sedan. Check with your insurer before customizing.

Special Classes
Taking advanced driving classes, safety training lessons, online courses in defensive driving etc can net you attractive discounts from certain insurers. Safe driving, with fewer points on your license, can lower your rates significantly.

Veteran Discounts
If you have a gap in your insurance coverage because you were serving in the armed forces, some companies offer exceptions to their regular insurance rates. If this applies to you, make sure you inform the insurance company and check whether there’s a lower premium for your category.

You May Not Need Full Coverage
Certain charges are automatically factored into insurance policies, such as towing and rental fees. If you feel you don’t need these, pick only the coverage that you feel you really need.