Young Drivers Car Insurance

Unfortunately for teens and their parents, young drivers car insurance is more expensive than for any other group of drivers. However, it’s still possible to save and find the best cheap car insurance for new drivers by shopping around, applying for discounts, and driving safely.

To start shopping for cheap young drivers car insurance today, enter your ZIP code into our free car insurance comparison tool.

Why Teens Pay More for Car Insurance

Simply put, young drivers pay more for insurance because they get into more accidents. Which means teen car insurance won’t always be as affordable as you’d like.

Auto accidents are the leading cause of death for people between 16 and 20 years of age, and teens are more likely to get into serious accidents than any other group of people. Because the odds are statistically higher that teens will be involved in accidents, they pay more for insurance.

Teenagers and other new drivers do not have the same experience that other drivers do. Because they have not developed the reflexes and reaction times of more experienced drivers, they will have a more difficult time avoiding accidents and driving defensively.

New drivers are also not accustomed to driving in all situations, so they may be more likely to get in accidents caused by weather, traffic or other problems that are new to them.

Teenagers are also likely to engage in risky driving behaviors. They may speed, break traffic laws or text while driving. Drinking and driving is another major concern in young people. People under the legal drinking age may not want to get into trouble and thus will not call for a ride when they have been drinking. They may also be less likely to appoint designated drivers than older drinkers.

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Who buys the policy?

In order to purchase an insurance policy, you must be 18 or older. Most teenagers are added as drivers to their parent’s policies. If the teen has their own vehicle, the parent may add that car to the existing policy or take out a separate policy for it. Once the young driver has turned 18, they have the choice of obtaining a new policy or simply removing their parents from the policy if theirs is the only vehicle insured on it.

Parents cannot buy auto insurance for adult children who do not live with them. They can, however, keep college students on their insurance policies until the students have graduated and moved out permanently.

How can teens save money on car insurance?

Young drivers may pay more for insurance, but they do have numerous options for reducing the cost of their premiums:

— Good Student Discounts

High school and college students with high GPAs pay less for car insurance than poor students. This is because good students are viewed as being more trustworthy and less likely to engage in dangerous behaviors like drinking and driving.

If a student sends a copy of their transcript to the insurance company each semester, they can enjoy a discount.

Read more: How can I get a good student on car insurance? 

— Graduated Licensing Programs

Some states draw the licensing process out over several steps. Drivers may receive learner’s permits, then limited licenses until they turn 18. They’re also required to clock a certain number of practice hours with their parents and have a limited number of passengers. Teens in these states may pay lower rates than others.

— Advanced Driver’s Education Courses

Libraries, schools and the DMV may all offer defensive driving courses or other types of advanced driver’s education. Whenever a student completes this program, they can provide proof of completion or certification to the insurance company, which may reduce the cost of premiums accordingly.

— Multi-Policy Discounts

College students can benefit from obtaining a renter’s insurance policy to cover their belongings in dorm rooms or apartments. Not only will this protect their possessions, it may also contribute to a discount on their auto insurance if the company offers multi-policy car insurance discounts.

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Other Cost-Saving Considerations

When buying a new vehicle for your teen, it’s a good idea to purchase something that is affordable to insure. Sports cars, collector’s cars and luxury vehicles are all very expensive to insure and the cost will increase even more if the driver is a teenager. Instead, purchase your young driver a minivan, sedan or other vehicle with a high safety rating and low insurance cost.

Remember, inexperience may mean that young drivers are more likely to get in accidents caused by weather, traffic or other car-related problems. In order to reduce the cost of premiums even more, you can add safety features and anti-theft devices to the vehicle. Anything that will reduce the chance of it being involved in a claim will cause the rates to go down when that vehicle is insured. Check with the insurance company to see what you may be able to do to make your vehicle safer and lower the cost of coverage.

Another way to reduce the overall cost of insuring a young driver’s vehicle is to limit the coverage. Because many first-time drivers have older model vehicles, it may make sense to carry liability-only coverage on that car rather than paying for full coverage insurance. Of course, if the vehicle is new or financed, this is not an option.

If a household has numerous vehicles, the parents may be able to save money on their overall insurance by keeping the teen’s vehicle on a separate policy and excluding the teen from driving any other vehicle in the household. If you do choose to do this, bear in mind that the teen cannot drive any car on the excluded policy; if they do, any accidents that occur will not be covered.

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Buying Affordable Insurance for Young Drivers

Companies that specialize in high-risk auto insurance may offer low rates to teens, so it might be smart to shop around for a policy even if the family’s other vehicles are insured with a different company. You can comparison shop online for the best rates. The quote request form will ask for the age and gender of the driver, so the results will be filtered to show only companies that can provide insurance to that age group.

Fortunately for young drivers, insurance costs begin to decrease after age 19. By 25, they should enjoy excellent rates if they have maintained a safe driving history and good credit with the insurance company. Many young drivers are able to earn excellent rates by purchasing a policy as teens; as adults with perfect driving records, they have a wide variety of cheap insurance options available to them.

Case Studies

Case Study 1: John’s Story – Overcoming High Premiums

John is an 18-year-old high school student who just got his driver’s license. Excited about his newfound freedom, he was shocked to discover that the cost of car insurance for young drivers like himself was significantly higher than he anticipated.

Determined to find affordable coverage, John used a car insurance comparison tool to compare quotes from various companies. By leveraging good student discounts and completing an advanced driver’s education course, John was able to secure a policy with lower premiums, saving him hundreds of dollars each year.

Case Study 2: Emily’s Experience – Adding to Her Parent’s Policy

Emily, a 20-year-old college student, wanted to have her own car insurance coverage but didn’t have the financial means to afford it independently. She decided to explore the option of being added to her parents’ car insurance policy.

By doing so, Emily benefited from her parents’ established insurance history, which helped reduce the cost of her premiums. This arrangement allowed Emily to drive legally and saved her from the burden of paying higher rates as a young driver.

Case Study 3: Mike’s Strategy – Choosing a Safe and Affordable Vehicle

Mike, a 19-year-old recent high school graduate, was determined to find a way to lower his car insurance costs. Recognizing that the type of vehicle he drove could impact his premiums, Mike opted for a used sedan with a high safety rating instead of a sports car or luxury vehicle.

By choosing a car that was affordable to insure, Mike was able to secure a policy at a more reasonable rate. This decision not only saved him money but also provided him with peace of mind knowing that his vehicle was reliable and safe.

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