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Does Cheap Car Insurance for Young Drivers Exist?

A young, latino woman sitting on the front seat is happy because of summer driving

As a Young Driver, Can I Find Cheap Car Insurance?

The answer is no, at least not compared to the rates older drivers will pay for their auto insurance. It doesn’t seem fair that after all that hard work and nerve-wracking road test, you won’t be able to start off with a clean slate when it comes to your car insurance rate. Unfortunately your insurance rate is based on the collective behavior of all teens and young drivers, past and present. As a group, young and inexperienced drivers tend to be categorized as high risk drivers – and their insurance rates correspond.

On average, parents see a premium increase of 111% after adding a teen driver to their auto insurance policy. If you’re paying for your insurance on a policy separate from your parents, you’re looking at an even higher cost. However, know that there are reasons why getting cheap car insurance for teens and young drivers is so tough and know that there are still ways you can save money.

Are Drivers Under 25 Considered High-Risk Drivers?

Yes, they are considered high-risk drivers and here’s why. Even though today’s young drivers are involved in less fatal accidents than the generations before them, the #1 cause of death among young adults is still motor vehicle accidents. Teens alone are 3 times more likely to be involved in a fatal car crash than drivers over the age of 20. On top of that, statistics from the organization End Distracted Driving show that almost 60% of accidents with young drivers were caused by distracted driving. Although these are alarming facts, knowing them can help prevent you or a friend from becoming a statistic.

How Much is Car Insurance For Young Drivers?

On average, you are looking at anywhere from $1,500 to $2,500 per year for various levels of liability car insurance for teenage drivers. That amount does not include comprehensive or collision insurance, which together with liability is considered full coverage. When you start talking about full coverage (which, by the way, you will have to get if you finance a new – or used – car), that amount goes up to somewhere around $3,000 to $4,000.

Once a young driver hits his or her 20s, those amounts will still be high, but on a downward trend. All motorists should do comparison shopping for car insurance since you can potentially save thousands of dollars that way.

Remember, the goal is to reach an age where your car insurance rates are “normal.” To do that, you must keep a clean driving record through the years.

Male Teen Driver Looking Out Of Car Window

How Can I Save Money on My Car Insurance?

As a young driver, there are numerous ways you can be proactive and help keep your insurance costs down. First and foremost, drive defensively and safely. An accident – or even a ticket – at this vulnerable stage can have long-lasting effects on your car insurance rates. Here are a few ways you can save on auto insurance.

1. Get on Your Parent’s Insurance Policy

Many insurance companies offer discounted rates for multi-car policies, so adding your car to your parents’ policy is one of the best ways to save money on car insurance. Instead of purchasing your own car insurance policy, find out if your parents are willing to add you to their policy. This is one of the best ways to save money on auto insurance costs for young drivers.

2. Choose a Safer Vehicle

Along with adding your vehicle to your parent’s policy, you could also save money by choosing a safer, more practical vehicle. If you’ve got a sporty new ride, this can set you up for costly insurance. Coverage providers consider the fact you, as the policyholder, are under 25 and that you also have a flashy vehicle that may be more expensive to repair. Based on this, your insurance company will label you a risky driver in a risky car. This will get you a sky-high insurance quote. However, if you’re on the road in a safer, less conspicuous vehicle, such as a used Chevy Malibu, Honda Accord, or Toyota Camry, you’ll be looking at cheaper rates than you would if you were driving a brand-new Mercedes E-Class convertible.

3. Get Good Grades

Many insurance companies offer a discount for good grades for drivers that maintain a GPA of 3.0 or higher. Understandably, insurance providers believe drivers with good grades are responsible in the classroom and therefore responsible on the road. Good grades are a great incentive on their own, but saving money on auto insurance is certainly another perk.

4. Take Defensive Driving

You may be able to find an insurance company that will give you a discount for showing you are serious about being a defensive driver by taking a course.

5. Consider Leaving the Car at Home

Student-away car insurance is way less expensive than full-time insurance. If your college campus is navigable without a car, leave yours at home.

Becoming a driver at a young age is exciting. Spending money on car insurance is one of the not-so-exciting things about driving, but getting covered is important. Take the things you’ve learned from this article with you and get insured as soon (and cheaply) as possible.

Find Affordable Car Insurance Online Today

Freeway Insurance specializes in providing cheap auto insurance to high-risk drivers, including drivers under 25. We’ll compare rates from top insurance companies to find you the best auto insurance at the best price. Get a free car insurance quote online or over the phone at (800) 777-5620. You are also welcome to stop in one of our convenient locations.

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