Cheap Car Insurance for Young Drivers

Most of us know that young drivers under the age of 25 have to pay more expensive auto insurance premiums than others. Did you ever wonder why and where is the cheap car insurance for young drivers?

There are those who simply think that the auto insurance companies are taking advantage of young people and trying to profit as much money as possible. You must understand though that there are many valid reasons that young people have to pay more for auto insurance.

It is true that insurance companies are a business and are in business to make a profit. They will insure you but they will categorize you and place you in a risk category that is based on many things, with your age being one of them.

Things such as your age, credit score, where you live, driving history, and even your gender play a big part into what you are going to pay for your auto insurance.

Young drivers are seen by insurance companies as high risk drivers. Their lack of driving experience automatically increases the chance that they will be involved in an auto accident. Statistics play a big part of everything and those who are under the age of 25 are involved in more accidents than any other age group.

Insurance companies know that young people are not as mature as older drivers and at times will do some mind blowing things on the road. Doing these mind blowing things is seen as reckless driving in the eyes of the insurance companies and is one of the main reason that young drivers pay so much for their auto insurance.

Though some people may think that it is unfair to charge young people these outrageous insurance rates simply because of their age, the insurance companies have to go by the risk factor that you will get into an accident. You may be a very safe driver and follow all of the traffic laws, but the auto insurance companies must go by statistics and judge you by what category you fit into to.

Young people will sometimes have to pay about double the price for auto insurance than an older person. Luckily for young people there are ways to save money though. If you are in school still, getting good grades will lower your insurance costs.

Taking a defensive course will also lower your premiums. Driving a smaller, inexpensive car will also help you save substantially. The next way to save is by raising your deductibles, this savings rule applies to everyone, not only young drivers. By following these tips, a young driver will reduce his/her risk category and ease the pain that comes with their auto insurance costs.

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Unfortunately; the words “young” and “auto insurance” are two very unfortunate words to have in one sentence. The risk factors of young drivers are much too high for any insurance company to risk coverage; so with this; cheap auto insurance for young drivers must do that little bit extra to show insurance agent’s that “Hey, we aren’t all that bad”.

Discount number one: Defensive Driving
Defensive driving can easily take up to 10% off your insurance premiums and get you cheap car insurance for young drivers. Say the young driver Billy Winkles is under the magnifying glass of his insurance agent and quoted him a monthly premium of $200 for full coverage.

This amounts to $2400 annually. Billy has taken a Defensive Drivers course for $40 online. This entitles him to a discount of $20.00 off his monthly premium. Multiply this by 12 months; Tadah! He’s saved himself $240.00 this year. However; factor in that $40 course: This still puts him at a $200.00 profit.

These defensive driving discounts typically remain active for three years after the course was initally taken. So; over a course of three years; He saved himself $240.00(3) – $40.00 = $680.00 over a three year period.

Discount number two: Good student discount
Most insurance companies praise above average students with a discount somewhere in the range of 15%-35%. Well lucky Billy here got all B’s last semester; so lets say worst case scenario his insurance company has the low end of the discount of 15%. Well 15% of $200.00 is $30 a month. Multiply by 12 months; $360 a year.

So, Billy’s down to $1800.00 annually and $150.00 monthly; a total savings of $600 annually.

Now; let’s make sure Billy keeps that premium under control…

It is extremely important for any young driver; and driver for that matter; to be extremely cautious when behind the wheel. A single wreck can total your insurance premiums; causing your rates to jump sky high. Depending on the extremities or frequency of accidents can also cause you to lose coverage completely.

So it is of dire most importance to drive with extreme caution.
Also, it is a general rule of thumb to shop around for new coverage every six months.

Rates are different throughout the year; living conditions in a young drivers life change frequently; they move to a different county; get better grades; maybe work in that defensive drivers course; all major factors on an insurance agents scrutiny factor. Be sure to shop around every six months to be sure that you’re getting the very best rate possible.

Also; always check with insurance companies for a list of discounts they may offer. Sometimes they throw in certain circumstances such as single mom discounts or good driver discounts. These young drivers need all the help they can get.

Hopefully, Billy will find these tips helpful in keeping the insurance agents away and out of his wallet.

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