Cheap Car Insurance For Young Drivers

The cost of car insurance for young drivers is determined by the same factors as everyone else, including location, driving record, gender, type of vehicle and coverage amounts. But, even with all other factors being equal, young drivers (under age 25) are generally charged higher premiums than older drivers. This can mean several hundred, or in some cases thousands, of dollars per year to cover just one teenager behind the wheel. So it’s no mystery why finding cheap insurance for young drivers can often determine whether or not there will be a new driver in the family.

Why Is Car Insurance For Young Drivers So Expensive?

It’s all in the numbers. Years of real-life statistics and motor vehicle records confirm that young drivers are more likely to be involved in an auto accident that causes personal injury or property damage. Here are a few startling facts from the US CDC Teen Driver Factsheet.

More likely to crash. Per mile driven, teen drivers ages 16 to 19 are four times more likely than older drivers to crash.
Lowest seat belt usage. Compared with other age groups, teens have the lowest rate of seat belt use.
Highest risk for newly licensed. Crash risk is highest during the first year that teens are eligible to drive.

It’s no wonder that insurance companies charge more to cover drivers in such a risky demographic. Generally car insurance premiums don’t begin to decrease substantially until age twenty-five. But, there is some good news. Read on for ways to help reduce the cost.

Save Money With Insurance Discounts For Young Drivers

To create buying incentive, insurance companies do offer price reductions specifically geared toward this age group. Not every company offers every discount, and some companies are sure to offer their own unique options that are not listed here. Also, some companies are generally more friendly in their terms for young drivers than others, so it pays to shop around. Here are the most commonly offered discounts.

Good Grades – For both high school and college students.
Monitoring Devices – Electronic systems that monitor and record driving data.
Safe Driver Education Programs – In person or online there are lots of options.
Resident Student – If the driver lives at school and the car lives at home.
College Graduation – GPA, degree, or even type of work could qualify you.

Always ask an insurance agent about what discounts their company offers and which you may be eligible for.

More Ways To Reduce The Cost of Insurance For Young Drivers

Beyond discounts specifically for young drivers, there are a number of additional ways to help keep the cost of insurance at an affordable level. Some of these save you money up front and some reduce potential costs in the future, but all are worth considering.

Drive A Safe Vehicle
Keep A Clean Driving Record
Don’t Drive Much? Look For Low-Mileage Discounts
Start To Establish A Good Credit History
Add Coverage to Parents’ Policy
Own The Vehicle Outright
Go With Insurer Offering First Accident Forgiveness

For a young driver car insurance is usually the last thing they want to worry about, but it’s a big financial consideration for most families. The best car insurance for young drivers is the one that fits your needs and your budget. Use the information here to make an informed, and hopefully less expensive, decision about how to insure your new driver.