Young Drivers
Insurance companies don’t like young drivers because they tend to have a much higher accident record, so they charge a much higher rate if they’ll insure them at all. It’s not just teens, the higher rates apply to drivers under 25, and are higher again for boys than girls.
Here’s a few suggestions to keep the costs down :
- It is usually cheaper to add young drivers to your insurance policy than for them to purchase their own. If they will have their own car, insure it with your company so that you can get a multi-policy discount.
- Pick a safe and inexpensive car. Cars with better safety records cost less to insure, as do cars that are less expensive to repair.
- Look for discounts. Many companies offer discounts for good grades, completing a drivers education course, and students that are away at school.
- Avoid accidents and tickets. Many companies will offer discounts over time based on driving records.
- Shop around for prices. Some companies are more teen-friendly than others.
Many companies offer young drivers discounts that can dull the pain a bit. Drivers education classes are required in some states and probably a good idea everywhere. Most insurance companies have discounts for completing drivers ed. Make sure that it’s a state approved course in your state.
Some insurance companies also offer good student discounts. These generally require B or above averages, but check with your insurance company. Good student discounts often extend even after school graduation.
Driving records are important too. Tickets, accidents, and points on a license can raise anyone’s rates … mores with young drivers.
The Top Discount
This applies to everyone. Buy a safe car! It may sound boring, but some cars are safer than others and are rewarded with lower rates (sometimes much lower). It might not be quite as cool cruising in a 4 door sedan as showing off in a 2 seat roadster, but you’ll have a lot more gas and fun money in the sedan.
Discounts are only part of the story. It is important to avoid up-charges. Tickets add up. The fine for a speeding ticket is several hundred dollars in most states. But the ticket cost is nothing compared to what it adds to insurance costs. A single speeding ticket can add $1000 or more yearly to your insurance bill. A second ticket can add another $1000 to $2000. That’s a lot of money.
Tickets aren’t the only way to build your bill. My under 25 year old son had good inexpensive insurance. But made the mistake of letting his insurance lapse by late payments. When he tried to buy insurance again, he was kicked into the risk pool and the rate was triple what it was before. It was a year before he could find a company to give him a lower price, and he’s still well above what he paid before. I guess he learned a lesson: Don’t mess with insurance companies. They always win.