Affordable Car Insurance for Young Drivers, New Drivers, and Students

January 03, 2020

young teenage driver

Affordable Car Insurance for Young Drivers, New Drivers, and Students

Cheap Car Insurance for College Students and Graduates

Best Auto Insurance Companies for College Students and Graduates

Compare Car Insurance for Young Drivers

Why is Car Insurance Expensive for New Drivers?

For parents, insuring young or new drivers can make monthly auto insurance premiums jump drastically. We ran the numbers at Compare.com and found that adding a teen driver to a car insurance policy can cause car insurance premiums to 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 why young drivers are more expensive to insure: Teens and young drivers are statistically more likely to be involved in an accident. Here are some eye-opening statistics that reveal why it is so much more expensive to insure young drivers than adults:

For young drivers under 21 who make their own car insurance payments, it can be expensive to become insured as 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 Affordable 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 payout 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, and as not having car insurance is against the law in all 50 states, finding affordable car insurance as a young driver is all the more valuable.

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 more affordable 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 To Get Cheap Car Insurance as a Young Driver or Student?

There are several steps you can take to get affordable car insurance as a student, new driver, or young driver. First, if you are still on your parent’s car insurance policy, make sure you are listed as a driver. If not, you may not be covered in the event of an accident. You should also make sure you are assigned as the primary driver of the car you drive to school.

Next, 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. Narrowing down to a more affordable insurance rate for new drivers gets tricky, so here are some extra tips on bringing down the price of insurance as a young driver.

Look for Safe Driver & Distant Student Discounts

As a new driver, trying to qualify for as many discounts as possible can help to make your insurance more affordable. From Good Student discounts to Safe Driver discounts, there are a lot of available discounts for young drivers that can help drive down the cost of insurance for a new driver. Many auto insurance companies offer students a discount that can be applied if you maintain a B or above in all your classes. 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.

Insurance discounts also exist for college drivers who go away to school. These are known as Distant Student Discounts, and many insurances require you to simply update the mileage you travel each day to possibly cut your rates. If you do not take the car you drive to school, then your parents may be able to update the policy to reflect the change in how often the vehicle is being driven, and how far. It may even lower your car insurance premium since you’re driving less. For many auto insurance companies, to qualify for a distant student discount it is required that the college student attends school at least 100 miles away from home. 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 for Insurance Discounts

There is a wide range of driver safety courses available to young drivers and students. Completion of a driver safety course can reduce car insurance costs and turn expensive car insurance policies into more affordable car insurance plans. Many states even require that your insurance provider gives you a discount for taking the course. Car insurance discounts from completing a safe driver class can range from five percent to 20 percent.

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 performance vehicles like a Mitsubishi Lancer, Volkswagen GTI and Subaru Impreza are Millennials.

It’s hard to be a young driver. 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, and why drivers of safer vehicles typically have more affordable car insurance policies. 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.

Telematics for Usage-Based Insurance

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 insurance 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 Car Insurance Quotes for Young Drivers

Cheap Car Insurance for College Students and Graduates?

Like new drivers, college students face challenges not just with finding cheap insurance, but other big challenges, like living in a new area, finding a job, and studying for classes. On top of all that, it can be a real pain trying to balance out your finances like living costs, gas money, and insurance. None of these are easy tasks, but we can help with at least one – finding an affordable car insurance plan for a recent grad.

How to Find Cheap Car Insurance as a College Student

Buying affordable car insurance for college students or grads is certainly a concern, but it’s rarely a top priority. Many young drivers under 25 get a policy from the same insurance company that their parents use or that they’ve used since first starting to drive. Some go online and get a quote or two from different car insurance companies. Fortunately, Compare.com makes it easy to find cheap car insurance for college drivers or to lower your current rate.

Just follow our checklist!

Car Insurance Policy Check List

  • If you have your own policy, make sure your insurance policy reflects where you live and where you park the vehicle. Your address may be a variable that insurance companies use to price policies, plus having it updated makes submitting claims more efficient.
  • Check the limits on collision, comprehensive and liability coverages. Colleges are densely populated with inexperienced, new drivers. Thus, accidents are more likely to happen. Checking your coverages in these areas will help ensure that you have the appropriate coverage if an accident occurs.
  • Theft of vehicles and personal items from within vehicles is more common on and near college campuses. Be sure to avoid leaving valuables in vehicles parked around campus. And, of course, always lock your vehicle.

Best Auto Insurance Companies for College Students and Graduates

Unfortunately, there is no one absolute cheapest insurance company for college students and drivers under 25. However, there is a simple solution when looking for an affordable insurance plan: shop around. Every insurance company doesn’t calculate risk the same way, which means prices are different from company to company. Do your homework and get multiple quotes. 

But who’s got time for that? We can help you expedite your search with a single form that will give you multiple quotes at once. You can compare insurance prices side by side, lock-in your best rate, buy and be done.

What About After Graduation?

If you’re a recent college graduate, what can you do to get a good deal on car insurance when getting your own car insurance policy? The first thing is to make sure that you have a good credit score. A good credit score can get you a more affordable rate on car insurance. Be sure to keep your score up too by paying bills on time and paying overdue debts. Paying off your credit cards will help you to maintain your current insurance price. On the other hand, falling behind on payments can hurt your credit score. If you get too far behind, your insurance carrier might choose not to renew your policy when your policy expires.

Bundle Your Car Insurance Policy with Other Policies

You may have several insurance policies such as auto, renters and perhaps life insurance. One way to find the most affordable auto insurance policy for you is to bundle these policies. Bundling is when you buy multiple types of insurance together from the same insurance company. It could not only decrease your auto insurance premium but the premium for your other insurance products as well. Leaving you one less bill to worry about.

Understanding What Coverage Limits You Need

As a recent college graduate, you may not be in the position to run out and buy a new car. Some get a new car from mom and dad, but not many. If you plan on driving your current car for a few years more, take a closer look at the coverage levels. If the car has a few scratches and dings, it might be worth raising the deductible or dropping comprehensive coverage.

Be careful though, because while you can save money by changing coverage levels and deductibles, you can also get yourself into a tight spot if you don’t have money put aside to deal with any issues that might arise.

The only way to get the best car insurance is to compare rates. Age, driving history and your address are all factors insurance companies may consider when they price your policy. All of these factors are also currently in flux as a recent college grad, especially if you are moving out of state.

We make finding affordable car insurance easy for both college students and new drivers under 25. Enter your details once and we’ll show you some of the best options out there!

Are you still looking for a more affordable insurance policy? Start comparing today!

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