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Cheap Car Insurance For Younger Drivers

Young Driver

Young drivers can get lower auto insurance if they do a little homework to find discounts.

It is becoming more difficult today for young drivers to find cheap car insurance rates, but if you are looking to save a little money on auto insurance there are a few steps you can take to save.

Going on your parent’s policy

This can be an effective strategy particularly if your parents have a good driving record without car insurance claims. When a young driver goes on their parent’s policy you are creating a multi-policy with a discount. Sometimes this works, sometimes it doesn’t. There are many determining factors the insurer is going include and if a parent adds the younger driver to the policy the insurer may assign more risk to the multi-policy since the young driver is considered higher risk. As a younger driver you want to talk to your agent or broker and compare the difference in price when you are on your parent’s policy and without.

If the parent is involved be sure to contact your insurer to get insurance quotes for adding additional drivers to the policy. You might want to tell them the younger driver is going to drive the car only to college and back, for example. The purpose of this is determine how the parent’s policy is going to be affected by adding an additional (younger) driver.

Always comparison shop

If you find going on your parent’s policy is not effective or they may not be willing to do it then you want to be sure to get as many car insurance quotes to compare from top insurance companies, such as Travelers, Allstate, and Progressive. If you are comparing auto insurance internationally then you want to be sure to compare quotes with top insurance firms in your area.

Getting the cheapest insurance rates

  • Raise your deductibles – If you have a vehicle which is low in value you may want to consider dropping comprehensive and collision. If you don’t feel comfortable doing that you can raise the deductible from $100 to $1000. Remember that is the amount you are going to pay before the insurance firm is going to cover the costs. If your vehicle is leased or financed then you aren’t going to be able to drop the coverages, but you may be able to raise them.

  • Drive Less – If you have a short commute to school then be sure to tell the insurer about it. Also, if you are going to use the vehicle to do other things, like go to the store, etc. then try to limit the amount of driving. The lower your mileage normally the lower your rate.

  • Get Good Grades – If you have a “B” average then get a copy of your report card and show it to the insurer. Then ask for discounts.

  • Build Your Credit – If you haven’t already done so you might want to get a credit card to start building your credit. Once the insurer knows you are financially responsible then over time your insurance rates could decline.

  • Keep Your Driving Record Clean – As a younger driver you do not want to get into an accident or have a major traffic violation. If so, this will skyrocket your rates.

  • Type of Vehicle – If you are shopping for a new or older model automobile you want to compare insurance rates first. Many buy a vehicle before comparing auto insurance then come to find out the insurance for the vehicle is extremely high.

There are insurance companies which have lower rates

As a younger driver you might get discourage from the extremely high insurance quotes, however, there are firms offering cheaper insurance premiums to young drivers. The important thing to do is locate the insurance companies which can easily be done by comparing quotes online. As a young driver when you are comparing there are other items you want to keep in mind so you understand how insurance companies determine your rate.

  • Where you live or your location by zip code

  • If you are male or female

  • Your past driving record

  • Type of vehicle and coverage

If you have been driving for less then three years

Where a lot of young drivers (or teenagers) get stuck with high insurance rates isLow Mileage Discounts without a way to prove a good driving record. The insurer is going to determine your past driving record over three years. There are a few things you many want to keep in mind.

  • If you receive a drivers permit at the age of 16 be sure to tell the insurer since they could use that to calculate driving experience and you could get a good driver discount at the age of 19.

  • Ask the insurer about automatic payment withdrawals from your bank account or credit card for discounts.

  • If you have the financial wherewithal, pay your premium for six months or one year. This could save you ten percent or more. Plus, you are telling the insurer you are financially responsible.

  • Maintain insurance coverage as long as possible even if it is for thirty days.

A sure fire way for younger drivers to get cheaper car insurance

As a young driver if you cannot find affordable car insurance then ask the insurer about vehicle monitoring such as USAA’s technology from Intelligent Mechatronic Systems which is a tool that tracks driver’s performance. Progressive has a program called Snapshot and if your are willing to put a device in your vehicle you could possibly find substantially lower rates.

There are other companies offering car monitoring and Pay-As-You-Go type of insurance plans. If you are a younger driver in California, Arizona, Utah, or Nevada then you could look into the CSE’s Insurance Group at CA’s Department of Insurance here. How the programs work is if your mileage is set within limits, like 5,000 to 7,000 miles per year then you could get reduced rates. If you drive less then you could qualify for better discounts. As a younger driver you want to be aware of tools or programs to lower your auto insurance.

Greg Fowler
I love to network, travel, and spend time with my children. When I am not doing that I am working on AutoInsureSavings or other websites. If I am working, the best way to reach me is via my Google+ Profile.

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