Ah, to be young again. It’s a time when we had seemingly limitless energy and the world was full of endless possibilities. Not only that, but our skin was smooth and completely wrinkle free! Boy, it really does seem like ages ago. But for all the virtues of youth, there is one slight drawback. You pay more for car insurance!
For auto insurance companies, “young” actually means “risky.” And what does “risky” mean then? That’s right, it means “money.” Or rather, it means more money that a young driver has to hand over for car insurance. If you are a young driver or a parent of one, this is an important topic for you to understand.
Before we discuss some tactics on how young drivers can keep their auto insurance costs down, let’s first define what exactly a young driver is and what they mean to auto insurance companies.
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Under The Age Of 25
Turning 16 years old represents a huge turning point in life. It is the age when most of us first earned our driver’s license and could legally operate a motor vehicle. Another less obvious but just as important milestone is reaching the age of 25. This is the age when a person truly matures in the eyes of the auto insurance companies. Essentially, this is when a motorist enters a different demographic. This older age group, as a whole, is less accident-prone and files less claims. Consequently, they pay less in auto insurance than their younger peers.
Simply put, any motorist between the ages of 16 and 24 could be considered a “young driver” since they are lumped together in the same demographic. This also happens to be the riskiest demographic – according to the Insurance Institute for Highway Safety, young drivers are four times as likely to get into an accident than any other age group. As a result, they will pay more for car insurance.
Less Than 3 Years Of Driving Experience
More experience on the road usually translates into safer driving habits. Experienced motorists are more weary of the dangers the road can sometimes present. Auto insurance companies reward these more experienced motorists with lower premiums since they are less likely to file a claim.
So, in this instance “young” has nothing to do with age. It happens to relate to a lack of driving experience. Often the two go hand in hand, but not always. Thus, an auto insurer may consider you to be a younger driver even if you are middle-aged. Young or old, the designation ultimately doesn’t matter. What is important is the fact if you have less than three years driving experience, you will pay more for car insurance.
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I’m A Young Driver – How Can I Save Money?
If you happen to find yourself in the riskiest, most expensive demographic for car insurance, you don’t have to be content with simply paying high insurance premiums. There are ways for you to cut costs and find the most inexpensive car insurance possible.
GOOD STUDENT DISCOUNT
Many young drivers are enrolled in either high school or college. While most students understand the value of getting good grades – did you know that hitting the books can also save you money on your car insurance? It’s true. Students who maintain a “B” average can see discounts of up to twenty percent off their premium. Now if that isn’t a reason to head to the library, we don’t know what is.
DRIVER’S EDUCATION COURSES
If you earn a certificate from a driver’s education course, you could see your auto insurance premium decrease. Many car insurance companies offer discounts up to 20% for motorists who successfully complete a driver’s safety education course. In some states you can even take the course online. Be sure to check with you local DMV to see what courses are available.
DRIVE A LESS EXPENSIVE VEHICLE
Sure, it’s tempting to go out and get the flashiest, most expensive (if you can afford it) car possible when you first get your driver’s license. You have to show off the new wheels, right? You don’t have to ride the bus or take your bike anymore, so why not do so in style? Well, this is a temptation you must resist. That is, if you want to save money on car insurance. Being and young driver and driving a brand new sports car is like double whammy. It puts you in a higher risk category and guarantees high premiums.
There’s nothing you can about your “young driver” status (except to gain experience and let time pass), but you have a choice as to what car you insure. The cheaper the car, the less you pay in insurance. So go for the Honda Civic instead of the Corvette. You may be driving a less exciting car, but at least your wallet will be a lot heavier.
KEEP YOUR RECORD CLEAN
The surest way to see your insurance premiums skyrocket is to receive traffic tickets or be at-fault in an accident. As a young driver, you are automatically placed in a high-risk category. One ticket or accident can catapult you into an even highest-risk group and your rates will rise dramatically. Only one speeding ticket can see your premium increase by 30%! Not only that, but these elevated rates can remain for up to five years. That can translate into thousands of dollars over the long haul. Ouch! Receive multiple tickets or get more than one accident and there is a chance your auto insurance company could drop you.
The lesson here is to always practice safe driving habits. Obey all traffic laws, and employ defensive driving techniques. This will save you a tremendous amount of money, and more importantly, will help you and your loved ones to stay safe on the road.
CARRY A HIGH DEDUCTIBLE
This tip comes with a certain amount of risk, so beware. It is a well-known fact that if you carry a higher deductible, your auto insurance premiums will decrease. But this only saves you money if you don’t file a claim. If you raise your deductible to amount that is more than you can afford, you could be in trouble. Imagine this nightmare scenario. You want to save money on car insurance, so you set your deductible at $1000. Three months later you get into accident, and you only have about $300 in the bank. How are you going to get your car fixed?
So carry a higher deductible, but do so wisely. Only have an amount that you know will be able to pay for in case of an emergency. Remember, it’s only worth it to carry a high deductible if you can avoid filing a claim – and if you can afford to pay the deductible.
GET MULTIPLE ONLINE QUOTES
The best way for young drivers to find the most inexpensive car insurance available is to get multiple online quotes. When car insurance companies have to compete for your business, you win. But you can’t discover what the cheapest rate available is if you don’t explore your options. So make the car insurance companies compete for your business. Get multiple online quotes here at Cheap Quotes Car Insurance today!