It’s exciting to finally get that driver’s license and have the freedom to get in the car and go. But one thing that stops a lot of new drivers in their tracks is the high cost of car insurance. Parents and young drivers may get quite a shock when they see the next insurance bill.
Going without insurance as a young driver just isn’t an option — it could result in fines, a suspended license, or even a terrible, costly accident.
Young drivers shouldn’t despair, though. There are a few tactics they can use to lower their car insurance cost and get the coverage they need. Here are five easy ways to lower car insurance costs for young drivers.
Get Good Grades
Most car insurance companies are happy to offer a discount to young drivers who can show they have good grades. Drivers who have a GPA usually at a 3.0 or above can get a significant discount, which is a great reward for working so hard at school.
Even better is that young drivers can take advantage of a good grade or good student discount until the age of 25. Sometimes, the discount is as much as 25 percent.
While car insurance companies, on average, do charge a much higher rate for young drivers, not every company charges the same rate. Parents and young drivers can benefit from shopping around and comparing car insurance quotes to see which company can offer the lowest rates.
Comparing car insurance quotes is a great idea when adding a teen driver to the policy. This is because some companies have programs and apps geared toward young drivers.
Shopping around isn’t only about getting the best quote. It can also help a young driver decide which company can offer the best coverage for their needs. If they won’t be driving often or long distances, a low mileage program might be an effective way to keep car insurance costs manageable.
Get a Driver Certification
When calling around to get quotes, young drivers should also ask about special certifications or defensive driving courses they can take. In addition to taking a driver’s ed course at school, some companies, like State Farm, offer training and interactive learning through an app for drivers under the age of 21. Once they complete the training, they can earn even more discounts on their policies.
In some states, drivers of all ages can take a defensive driving course approved by the department of motor vehicles and the car insurance company. Besides the great skills taught, it could also lead to another policy discount. Many young drivers do not get enough instruction or learn to drive on a fixed or closed-off course, so picking up defensive skills can help them make quick decisions better.
It’s a smart move for young drivers to get a policy with the same company as a family member for a few reasons. Family members can help them to learn how to navigate their insurance policy. It can be overwhelming at first to try to figure out what everything means.
Another great reason for young people to get a policy at the same company a family member uses is that many car insurance companies offer a discount when family members add a person or bring a person in to get their own separate policy.
Function Over Style
After waiting and working hard, many teens and young adults have their hearts set on a flashy, fancy, and fast car. But that’s a great way to cause the car insurance costs to rise. Insurance companies know that fast cars with a lot of luxury features can tempt younger people to make poor choices on the road. Newer cars aren’t always bad since they may have more safety features than an older model, but the style will matter.
Another thing young people should consider is reliability. When they insure a reliable car in good condition, this will have a positive impact on their insurance costs. Younger people often aren’t sure how to handle problems with their cars and are more likely to get into accidents when something goes wrong. A well-maintained car is safer, and that’ll reflect in insurance costs.
Young People in the Driver’s Seat
Younger drivers can get off to a good start with some preparation and training. With a little effort on their part, they can get on the road with confidence, knowing they have protection. Reasonably priced car insurance is within reach.