How to Get Cheap Car Insurance for Young Drivers

Car insurance is a necessity for anyone who owns and drives a vehicle. However, for young drivers, car insurance can be a huge expense. According to a report by The Zebra, the average annual premium for 16-year-old drivers in the US was $6,994 in 2020, which is more than four times the average for all drivers. Young drivers also face higher risks of getting into accidents and receiving traffic violations, which can further increase their insurance costs.

If you are a young driver or a parent of one, you might be wondering how to get cheap car insurance without compromising on quality and coverage. Fortunately, there are some tips and strategies that can help you lower your car insurance costs and save money. In this article, we will share with you some of the best ways to get cheap car insurance for young drivers.

Tip 1: Compare Quotes from Different Providers

One of the most effective ways to get cheap car insurance is to shop around and compare quotes from different insurance providers. Different companies have different ways of calculating premiums and assessing risks, so the price you get from one provider might not be the same as another. By comparing quotes from multiple providers, you can find the best deal that suits your needs and budget.

There are many online tools and websites that can help you compare quotes from different providers in minutes. For example, you can use The Zebra, Insurify, or NerdWallet to get personalized quotes from various companies based on your location, vehicle type, coverage level, and other factors. You can also use these tools to see how changing these factors can affect your premium.

Some of the factors that can affect the price of car insurance are:

• Location: The state and city where you live and drive can influence your car insurance rates. Some states have higher minimum coverage requirements and higher accident rates than others, which can increase your premium. Some cities have more traffic congestion and crime than others, which can also raise your premium.
• Vehicle type: The make, model, year, and features of your vehicle can affect your car insurance rates. Some vehicles are more expensive to repair or replace than others, which can increase your premium. Some vehicles are more prone to theft or vandalism than others, which can also increase your premium. Some vehicles have more safety features or better crash ratings than others, which can lower your premium.
• Coverage level: The amount and type of coverage you choose for your car insurance policy can affect your car insurance rates. The more coverage you have, the more protection you have in case of an accident, but also the higher your premium will be. The less coverage you have, the less protection you have in case of an accident, but also the lower your premium will be.
• Deductible: The deductible is the amount of money you have to pay out of your own pocket before your insurance company pays for the rest of a claim. A higher deductible means a lower monthly premium, but also a higher out-of-pocket cost in case of a claim. A lower deductible means a higher monthly premium, but also a lower out-of-pocket cost in case of a claim.

You should compare quotes from different providers at least once a year or whenever there is a change in your situation that could affect your car insurance rates. For example, if you move to a new location, buy a new vehicle, or add or remove a driver from your policy.

Tip 2: Choose a Higher Deductible or Lower Coverage

Another way to get cheap car insurance is to choose a higher deductible or lower coverage. As we mentioned before, a deductible is the amount of money you have to pay out of your own pocket before your insurance company pays for the rest of a claim. A higher deductible means a lower monthly premium, but also a higher out-of-pocket cost in case of a claim. A lower coverage means a lower premium, but also a lower protection in case of an accident.

For example, if you have a $500 deductible and a $10,000 claim, you will have to pay $500 and your insurance company will pay $9,500. If you have a $1,000 deductible and the same claim, you will have to pay $1,000 and your insurance company will pay $9,000. However, your monthly premium will be lower with a $1,000 deductible than with a $500 deductible.

Similarly, if you have a full coverage policy that includes liability, collision, and comprehensive coverage, you will pay more than if you have a minimum coverage policy that only includes liability coverage. However, full coverage will protect you from more scenarios than minimum coverage.

Liability coverage pays for the damages and injuries you cause to others in an accident that is your fault. It is required by law in most states and has two components: bodily injury liability and property damage liability. Bodily injury liability pays for the medical expenses and lost wages of the other driver and passengers in an accident that is your fault. Property damage liability pays for the repair or replacement of the other driver’s vehicle and other property in an accident that is your fault.

Collision coverage pays for the repair or replacement of your own vehicle in an accident that involves another vehicle or object, regardless of who is at fault. It is optional in most states, but may be required by your lender if you have a loan or lease on your vehicle.

Comprehensive coverage pays for the repair or replacement of your own vehicle in an event that is not a collision, such as fire, theft, vandalism, hail, flood, animal damage, etc. It is also optional in most states, but may be required by your lender if you have a loan or lease on your vehicle.

You should weigh the pros and cons of each option and choose what suits your budget and risk tolerance. You should also check your state’s minimum coverage requirements and make sure you meet them. You can use online tools and calculators to estimate how much coverage you need and how much it will cost you.

Tip 3: Take Advantage of Discounts and Programs

Another way to get cheap car insurance is to take advantage of discounts and programs that are offered by many insurance companies. Discounts and programs are incentives that can help you save money on your car insurance by rewarding you for certain behaviors or characteristics. Some of the common discounts and programs for young drivers are:

• Good student discount: If you are a student who maintains good grades (usually a B average or higher), you can get a discount on your car insurance. You will need to provide proof of your academic performance to qualify for this discount. According to The Zebra, the average savings from this discount is $269 per year.
• Safe driver discount: If you have a clean driving record with no accidents or violations for a certain period of time (usually three years or more), you can get a discount on your car insurance. You will need to provide proof of your driving history to qualify for this discount. According to The Zebra, the average savings from this discount is $612 per year.
• Defensive driving course: If you complete an approved defensive driving course that teaches you how to drive safely and avoid accidents, you can get a discount on your car insurance. You will need to provide proof of completion of the course to qualify for this discount. According to The Zebra, the average savings from this discount is $173 per year.
• Usage-based program: If you enroll in a usage-based program that tracks your driving habits through a device or an app, you can get a discount on your car insurance based on how well you drive. For example, if you drive less miles, avoid hard braking or speeding, or drive at safer times of the day, you can get a lower premium. According to The Zebra, the average savings from this program is $145 per year.

You should check with your insurance provider what discounts and programs they offer and how to qualify and apply for them. You should also review your policy periodically and update it with any changes that could affect your eligibility for discounts and programs.

Tip 4: Drive Safely and Responsibly

The last but not least way to get cheap car insurance is to drive safely and responsibly. Your driving behavior and history can have a significant impact on your car insurance rates. If you get into accidents or receive traffic violations, your insurance company will consider you a high-risk driver and charge you more for your premium. On the other hand, if you drive safely and responsibly, you can lower your risk and your premium.

Some of the tips on how to drive safely and responsibly are:

• Obey the traffic laws and rules of the road, such as speed limits, stop signs, traffic lights, etc. Not only will this help you avoid accidents and tickets, but also save you money on gas and maintenance.
• Avoid distractions while driving, such as texting, talking on the phone, eating, etc. These activities can take your eyes off the road and your hands off the wheel, which can increase your chances of crashing or making mistakes.
• Maintain a good driving record with no accidents or violations for as long as possible. This will show your insurance company that you are a safe and reliable driver who deserves lower rates.
• Avoid driving under the influence of alcohol or drugs. This can impair your judgment, reaction time, coordination, and vision, which can lead to fatal consequences for yourself and others. It can also result in severe penalties, such as fines, jail time, license suspension, or higher insurance rates.
• Wear your seat belt and make sure your passengers do the same. Seat belts can reduce the risk of death or serious injury by up to 50% in case of a crash. They can also prevent you from being ejected from the vehicle or hitting the windshield or dashboard. Wearing a seat belt is also required by law in most states and can save you from getting a ticket or a fine.
• Keep your vehicle in good condition and perform regular maintenance. A well-maintained vehicle can run more smoothly and efficiently, which can improve your gas mileage and reduce your emissions. It can also prevent breakdowns, malfunctions, or failures that can cause accidents or damage. You should check your oil, tires, brakes, lights, and other parts regularly and fix any problems as soon as possible.

Driving safely and responsibly can not only lower your car insurance costs, but also prevent accidents and injuries that can cost you more in the long run. It can also make you a better driver and a more confident person.

Conclusion

Getting cheap car insurance for young drivers can be challenging, but not impossible. By following the tips and strategies we shared in this article, you can lower your car insurance costs and save money. You can compare quotes from different providers, choose a higher deductible or lower coverage, take advantage of discounts and programs, and drive safely and responsibly. By doing so, you can get the best deal on car insurance that suits your needs and budget.

We hope you found this article helpful and informative. If you have any questions or comments, please feel free to contact us. We would love to hear from you. Thank you for reading and happy driving!