Young drivers often find themselves paying higher premiums with most insurance companies. When determining premiums for individuals, one of the main factors is a driver’s experience and previous record. Since many young drivers don’t have an extended record when signing up, insurance companies view them as a higher risk and thus charge higher premiums.
However, there are still ways for young drivers to show that they are responsible individuals and thus save money on their car insurance. As is true with most car insurance companies, the options for savings differ, so make sure to research each one individually to see which ones offer discounts that you may qualify for. Here are some ways to save money on car insurance under 25.
Purchase a less expensive vehicle. Many expensive vehicles such as sports cars and luxury vehicles are more money to insure. Also, cars that are bought on loans usually require higher forms of coverage including collision or comprehensive insurance. By paying cash and purchasing a less expensive vehicle, drivers under the age of 25 can avoid the cost of collision insurance. Carrying liability insurance alone will not cover repairs if an accident or other unfortunate event occurs, but the savings may be worth the risk. Drivers can save around 50% on their insurance by only carrying liability insurance.
Buying a beater as your first automobile is a great way to get driving experience and save on insurance. One of the main things that car insurance companies look at when determining your premium is driving record. Since young drivers don’t have a driving record, a more affordable car might be the best way to gain some experience driving and prove to the insurance companies that they are insuring a safe driver.
Increasing your deductible can also save you up to 40% on car insurance. If you do decide to carry collision insurance, it may be better to pay a larger portion of the repairs out of your own pocket. If an accident should occur, the leftover money not covered by the insurance company must be paid by the driver. Switching to a higher deductible and having no accidents will save money in the long run, and the fact that the money will be lost if an accident should occur may be what young drivers need to remind them to drive safe.
Many states offer defensive driving courses that can save money on car insurance for people under 25. As stated earlier, insurance companies want to insure safe drivers. Defensive driving courses are one of the ways to qualify for a discount with most companies. It’s also beneficial because it will equip younger drivers with the skills to avoid accidents and perform better under extreme weather conditions. Depending on the company, these discounts can be relatively beneficial not only for dropping premiums but becoming a better driver overall.
For drivers under 25 that are in school, it pays to keep the grades up. Many companies offer discounts for students with a B or better average. Simply see if your plan offers this and supply them with proof of your GPA, and you could be on your way to saving some serious money on car insurance. Also, the less you drive, the more you save. If there is an alternate form of transportation you can take to and from school, it’s recommended that you utilize them whenever possible. Students pay some of the highest rates of any demographic of insured, but there are ways to become a responsible driver and save money.
Being a safe driver is the best way to save money, period. Some companies will even give discounts for individuals who install certain safety features on their vehicles. Items that protect against injury and theft are all sings of responsible vehicle owners. Have airbags and a car alarm installed and make yourself a less risky individual to cover. Lastly, make sure your vehicle is in working order at all times. Perform a weekly safety inspection and make sure that your running lights, brake lights, and blinkers are working properly. Avoiding accidents and tickets is the best way to protect yourself and remain in good standing with your insurance provider.