Cheap Car Insurance for Young Drivers – Car Insurance Advice. Teenagers and young adults pay more for auto insurance than any other group of people. Because car insurance companies base premiums in part on statistical information, any young driver’s premiums will be affected by the driving habits of others his age. Additionally, young people are less likely to have established credit; this can negatively impact auto insurance premiums as well. Fortunately, young drivers can save money on auto insurance if they take care to comparison shop and take advantage of all available discounts.
Car insurance companies base their premiums on risk. The higher a person’s chances of filing a claim, the more that individual will pay for auto insurance. Risk is calculated on dozens of factors, many of which are outside the driver’s control. For example, car insurance companies will charge higher premiums in states that have several uninsured drivers or for a driver’s marital status and credit history.
Most risk evaluations rely heavily on statistical information. Car insurance companies are constantly gathering and analyzing statistics about driving behavior to set the cost of premiums. In the case of young drivers, statistical information plays a larger role because the driver has not yet had the chance to develop his driving record.
Statistics show that young drivers get in accidents more often than older people. Drivers between 16 and 19 years old are three times as likely to have an auto accident as any other age group of people, and a higher concentration of young people die in auto accidents than older drivers. Young drivers, after all, are inexperienced and may not have the reaction time of a more experienced driver. They may also be more prone to reckless behavior or be unpracticed at certain driving techniques such as traveling in snow.
Young drivers are also more likely to be involved in collisions involving alcohol consumption. This may be because young people are more prone to binge drinking than older adults, or it may be that underage drinkers are afraid of being caught and thus won’t call for a ride. Regardless, the high number of crashes each year among both drunk and sober teens leads to a heavy increase in premiums for teen drivers across the country.
Affordable auto insurance is possible for teenagers who are willing to search for it. Numerous car insurance companies cater specifically to high-risk customers, including young people. These auto insurance companies will often provide deep discounts to attract young drivers.
High school and college students can also save money on car insurance by taking advantage of student discounts. Most insurance companies offer discounts to drivers who go to school full-time and maintain a 3.0-grade point average. To obtain the discount, the student just needs to send his transcripts or report card to his insurance company each semester. This can result in discounts of up to 10 percent per year.
Many drivers also save money by remaining on their parent’s insurance until they’ve graduated from college. Although the parent’s policy may increase, the rate increase will probably be lower than the cost of a separate policy for the student. Once the student has graduated, he should have a suitably long driving record to help reduce the cost of his auto insurance. Maintaining safe driving habits is the best way to ensure low-cost auto insurance. The longer a person maintains an insurance policy without filing a claim, the more his premiums will be lowered at the policy’s renewal. Most insurance companies offer safe driving rewards and other incentives to drivers. This means that even people who pay high rates as teenagers can begin enjoying low premiums after a few years of accident-free driving.
The best way to locate an affordable policy as a teenager or young adult is to compare car insurance quotes online.
