Finding car insurance for people under 25 can be quite a daunting and difficult task. Considered higher risk drivers by insurance companies, people under 25 will generally find themselves paying higher premiums for coverage. Since insurance companies look at a number of different factors when determining premiums, there may be some elements that make car insurance quite the money pit. Single males under 25 will by far pay the most for premiums out of any other demographic of driver. However, there are some things that they can do to save money on insurance and bring their premiums down to a reasonable rate.
Full-time students often get a discount by showing that they are a responsible person. Many of the factors determining premiums have nothing to do with driving. Car insurance companies want to insure responsible drivers that will not likely file a large number of claims. Insurance companies view full time students as part time drivers, and thus believe them less likely to be involved in an accident. Depending on the policy, students may also qualify for a good student discount. Students who maintain a B or better average will often receive lower premiums by proofing their responsibility.
Perhaps the easiest way to save money on auto insurance under 25 is to be insured under your parents’ policy. Almost all insurance companies offer some type of discount on bundled insurance, and piggybacking on your parents’ policy can save up to 20% on car insurance for people under 25. This is especially useful for students who are already full time students and don’t drive very frequently. Having an insurance policy bundled with your parents’ plan can save initially, and by providing proof of good grades, you may continue to qualify for savings on your insurance.
Many people don’t think of this when buying car insurance, but auto insurance companies look at credit score when determining premiums. If you’ve already established credit, it’s a good idea to get a copy of your credit report and credit score. Fixing any errors or miscalculations on your credit report might save an incredible amount of money in the long term when insurance companies analyze how high of a risk you are.
Sometimes driver’s training is not enough. An educated driver is a safe driver, and one that pays less money to be insured. After you’ve passed driver’s training and gotten your license, it might be a good idea to look into additional courses. Almost every state offers a defensive driving course in one form or another. This will not only make you a better driver and fine tune skills needed to avoid accidents, but many companies will look at this as yet another sign of responsibility. In almost every case, additional driving courses are one of the better ways to save on insurance simply because it will make you a better driver in addition to saving on your premiums.
Stay away from the high performance and therefore high risk vehicles. Insurance companies look at what vehicle is being insured and will adjust rates accordingly. Many young drivers want the vehicles that look sexy and drive fast. It’s almost 100% that not only will these types of cars be exponentially more expensive to insure, but as a young driver, you’re much more likely to be pulled over while driving one. If you’re looking for low insurance rates, the more standard sedan type cars are much better for keeping your rates low and keeping drivers safe. It is also wise to install features like anti-lock brakes, airbags, and anti-theft systems, as many companies offer discounts for these features.
Choose a higher deductible. Defined as the money paid from the insured’s pocket in the event of an accident, this can lower your premiums by up to %15, particularly when it comes to collision and comprehensive coverage. If you’re driving an old beater, collision and comprehensive might not even be necessary, but if you do have this type of coverage, it’s wise to elect a higher deductible.
Perhaps the most useful way to save money on car insurance under 25 is to shop around. Check every possible company, see what discounts you may qualify for, and don’t choose a policy until you’re confident you’ve picked the perfect one to fit your needs.