Car Insurance For Young People – Young people in Mexico are currently the largest sector of the population, with 25.7%, according to the most recent population count, prepared by the National Institute of Statistics and Geography (Inegi) in 2015.
This sector of the population has increasing access to resources and goods, such as a new car.
In addition, they are a very attractive sector for companies due to their consumption habits: they have fewer and fewer children, they spend on impulse, but they also try to better plan their expenses to acquire higher-priced goods. They like to be on the cutting edge of technology and are willing to pay whatever price is offered for something they really want.
In recent decades, the middle class in Mexico can now access more expensive products, which were previously exclusive.
A new car is a recurring gift when you get out of college or your first big investment when you’re already working.
But how prepared is a young person to safely drive an object that by its very nature is dangerous?
For this reason, car insurance for young people (mainly for men) is more expensive than other sectors of the population.
According to statistics from the National Institute of Public Health (INSP), traffic accidents are the main cause of death in young people between the ages of 15 and 29.
Guros is a unique car insurance sales platform in Mexico and ideal for you to insure your first vehicle, especially if you are looking for car insurance for young people: you can quote in three simple steps, without having to provide personal information. All our proposals have a discount and we are the only portal where you can pay and contract your policy online, in a few minutes.
But we also want to give you all the necessary information so that you know how auto insurance works.
We also have a blog where we also give you tips to drive more safely.
That is why we will see some insurance options focused on young people, so that you have a much broader picture.
Before You Take The Wheel
- If it is the first time that you are going to get behind the wheel, you should consider that driving is not a game, it is an activity that can be dangerous if you do not do it responsibly enough.
- It is best to learn to drive accompanied by someone else with experience, even in a driving school.
- We usually learn to drive with a family member or friend. But, no matter how skilled they are, they can pass on their vices or mistakes to handle.
- This can cause problems especially if you have little experience, in a mistake you can be fined or cause accidents.
- Another important point is that you master the Traffic Regulations. Although in Mexico City it is not necessary to take a driving test, you should know what it consists of and what are the basic rules to drive safely, in addition to the infractions and their respective sanctions. The same thing happens with the signage that is on the streets and that many times nobody explains it.
- Finally, consider that a few hours does not make you an expert. You need a lot of practice and driving in different situations.
- For example, on your first road trip, you can be accompanied by an adult who knows best how to do it and explains how to pass, how to use lights, distances, driving at higher speeds, how to brake and take curves.
Requirements To Process Car Insurance For Young People
- Did you turn 18? You must process your driver’s license and contemplate the purchase of car insurance for young people.
- If you are a minor, you must apply for a driver’s license and under some circumstances, your parents’ insurance protects you.
- This, through a coverage called Civil Liability (RC) for minor children. However, it only covers damages to third parties.
- You also receive this coverage if you share your parents’ car and are designated as a regular driver on the policy.
- But if you will be the owner of the car, it is best to insure it in your name. Take into account that when you hire, the price will be higher.
- Do you want to save a little more? Try to pay your insurance in cash and not in monthly installments, doing this could reduce the cost of the policy premium by up to 10%.
I ALREADY HAVE MY CAR, NOW WHAT?
- There are two possible scenarios: buy a new car or a used one, either as a gift or with your own resources.
- First of all, do not get carried away by the impulse. A car is normally a purchase that involves emotions.
- Normally we see a model that we fall in love with and we stop evaluating possibilities.
- If you buy a new car on impulse, you can agree on more expensive monthly payments or unfavorable conditions for you. Also, if you don’t plan well, they can sell you insurance that may not have the best coverage, but it is expensive.
- If you opt for a used car, it could be out of warranty or have a major mechanical failure.
- Either of these two scenarios usually affects your pocket, so it is good to be well advised.
- In this case, the seller is not a good alternative to get this advice.
- For a new car, you have the possibility of contracting a policy, before you formalize the purchase of the vehicle.
- The caveat is that it must be paid before the purchase and must cover the entire term of the credit.
- The advantage is that you choose the coverage and you could get a lower price than the one imposed by the agency.
- In the case of a used car, it is best to also buy it at an agency, since you receive a guarantee for the operation of the car, and you will not run the risk that it has been stolen or used to commit a crime. In this case, the cost of insurance is lower.
- If you don’t want to do it this way, you can ask for the support of a trustworthy mechanic so that he can at least verify that the car will not give you problems soon.
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First Car Insurance For Young People
Standard auto insurance typically offers four packages:
Civil Liability: Car Insurance For Young People
A basic coverage for damages to third parties, mandatory in many parts of the country, including Mexico City.
It serves to compensate you for the damage you cause to the property of third parties with your car, as well as physical injuries.
limited: Car Insurance For Young People
In addition to Civil Liability coverage, it includes protection against theft of the unit and medical expenses for passengers traveling in your vehicle.
wide: Car Insurance For Young People
This policy adds coverage for material damage suffered by your car, as well as the previous coverage.
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Plus: Car Insurance For Young People
The following coverage includes the previous ones and also additional clauses such as a substitute car or a 10% more compensation in case of total loss.
Something important: All these modalities have two free services that are very useful:
- Roadside assistance. It is a basic mechanical service: tire change, gasoline supply, locksmith, tow truck, and power supply, among others.
- Legal assistance. It is a lawyer’s service to defend you if you are required by the authority. Includes the payment of bonds.
If you have little knowledge about mechanics, this can be a determining point to choose your insurance.
The road assistance service allows insurers to offer more services without increasing the price.
In addition, it prevents you from paying individually for any of these services. Find coverage that suits your needs.
Insurance Per Kilometer
- Car insurance per kilometer is a new alternative, offered by three companies in Mexico, that charges you for the distance you travel monthly.
- You can learn more about these insurers in our article: Car insurance per kilometer in Mexico: Miituo vs Kimmo vs AIG.
- The coverage is similar to that of traditional insurance (RC, limited, comprehensive, and plus).
- They charge you a fixed monthly amount and an additional proportion according to the mileage traveled.
- This is an attractive option for young people because insurance management is done online.
- However, if you exceed the contracted mileage, the price can rise significantly.
- It may interest you: Car insurance per kilometer: how does it work? What are its advantages?
Auto Insurance For Millennials: Car Insurance For Young People
As we mentioned above, the consumption characteristics of people who are currently around 18 years old are different.
For this reason, they will look for insurance that adapts to these habits and that they find some use for them, such as:
- The immediacy to obtain the product and, if possible, obtain it with some technological tool.
- The insurer you choose should make you feel cared for and important focused on good customer service.
- You will seek close interaction with the insurer through technology, typically through a mobile app.
- It must be flexible to adapt to your changing customs, both in terms of coverage and forms and methods of payment.
Conclusion Car Insurance For Young People
- The first car is a dream come true for many young people. However, a bad choice can create nightmares.
- When thinking about acquiring it, foresight is essential to make a good investment that will give you a useful service.
- Although technology currently has answers for everything, having much closer and personal advice can help you make a better decision and understand what you are hiring, with its pros and cons.
- An insurance advisor is also a good alternative to help you with all these elements that we discuss in this text.
- At Guros we are at your service to support you in your purchase and make you feel happy and calm with it.