Cheap Car Insurance for Young Drivers
For parents, insuring young drivers can make monthly auto insurance premiums jump drastically. We ran the numbers at Compare.com. Adding a teen driver to a car insurance policy can make the premium increase by 111 percent. When a parent buys their teen a car and adds them to their policy, premiums can increase by an incredible 156 percent. These are very uncomforting numbers.
There is a good reason behind why young drivers are more expensive to insure: they’re statistically more likely to be involved in an accident. Here are some eye-opening statistics:
- According to the Centers for Disease Control and Prevention: Car crashes were the leading cause of death for teenagers
- The Insurance Institute for Highway Safety reports that teen drivers aged 16 – 19 years old are three times more likely to be involved in a fatal crash than a driver over 20
- Cambridge Mobile Telematics revealed that 52% of crashes where the driver was a teenager occurred while they were driving distracted using their cell phone.
For young drivers under 21 who make their own car insurance payments, they know just how expensive it is to be an inexperienced, high-risk driver. Wouldn’t it be great if someone provided affordable car insurance for young drivers? Compare.com has tips for decreasing the cost of auto insurance while maintaining the coverage limits teenage drivers need.
Why do Young Drivers Need Cheap Car Insurance?
We understand why it costs so much to insure young drivers. The odds of them being involved in an incident that requires the car insurance company to pay out are higher than they would be with older, more mature drivers. The problem is that for young drivers who are insuring themselves, it’s a hard cost to bear. Most teen drivers work part time at jobs that pay either minimum wage or close to it, which means much of their earnings are going to expenses such as insurance payments and gas. For these drivers, cheap car insurance is critical to their financial well-being.
As the economy recovers, there aren’t many parents out their eager to take on the high cost of their kid’s car insurance payments. Those parents that do pay their child’s insurance premium often feel the strain, especially if they have more than one young driver on their auto insurance policy at a time. For them, a cheaper car insurance policy for younger drivers would save them a lot of worries as well as money. So it’s surprising that so many parents simply add their teenage driver to their existing car insurance policy without doing anything to lower the cost.
How Do I Get Cheap Car Insurance for Teen Drivers?
There are several steps you can take to get cheap car insurance for young drivers. First, get a quote on Compare.com and see what’s out there. What’s the difference if you change your coverage levels? What about going with an insurer that isn’t a big name, but is offering a better deal? Comparing prices is the easy part, here are some extra tips on bringing down your price.
Look for Teen Driver Discounts
Try to qualify for as many discounts as possible. From Good Student discounts to Safe Driver discounts, there are a lot of available discounts to young drivers and you can save a good deal of money through these alone. Good2go Insurance offers customers a discount for installing an app on their cell phone that blocks texts and calls when you’re driving. Be sure to ask your insurer for any other discounts that you could qualify for.
Discounts also exist for college drivers who go away to school. Simply updating the mileage you travel each day could cut your rates. Oh, and don’t forget about discounts for good grades too! They all add up so look for as many as you can possibly qualify for. Not sure where to start? We recommend speaking with your current insurance agent. Tell them you need to lower your rates and then ask if they provide any discounts for which you might qualify as a student or a parent of a student.
Enroll in a Driver Safety Course
There is a wide range of driver safety courses available to young drivers. Completion of these courses can reduce car insurance costs and turn expensive car insurance into cheap car insurance. Many states even require that your insurance provider give you a discount for taking the course. Discounts range from five percent to 20 percent. Learn more about driver safety courses and auto insurance savings.
Drive a Less Expensive Car
Driving statistics have shown that teen drivers are more likely to be involved in a serious accident. This isn’t helped by the kind of car that young drivers like to cruise around in. Nearly 50% of people that own a Mitsubishi Lancer, Volkswagen GTI and Subaru Impreza are Millennials.
It’s hard to be a young driver. You want to drive a nice car. You want everyone to see how cool you are and driving a soccer-Mom minivan or your Dad’s safe sedan won’t give you any cool points. However, driving a less exciting car can significantly reduce how much you pay in car insurance premiums. You can’t corner as well in a Honda Odyssey vs a Ford Focus RS, but that’s what insurance companies like about them. So maybe settle for the four-door, four-cylinder car instead of the 2.0-liter turbo and use that money you saved for something else.
Have Your Driving Monitored with Telematics
Having someone track your driving may not sound like much fun, but installing a little black box in your car could help you to save. A whole bunch of companies are wising up to ‘telematics’. This is when you install a small device in your car or download an app and it tracks your driving for things like speeding, harsh braking and what times of the day you drive.
If you’re a good driver, you may get a premium adjustment after a couple of months of monitoring. Some insurers will offer discounts for not driving between 11 pm and 5 am or limiting the number of miles you drive.
Compare Auto Insurance Rates
One way you can buy cheap car insurance for teens and younger drivers is to compare car insurance rates from different insurers. Auto insurance companies each have a type of driver they prefer to insure because their business is built to support that specific kind of risk. Drivers who don’t fall into that category may end up paying more.
Although, there are insurers that specialize in young drivers or drivers seen as ‘high risk’. To get affordable car insurance for young drivers, try comparing car insurance quotes with Compare.com. You’ll see right away the difference in comparing prices from one insurance company to another insurance company. Check out how much time and money you can save today!