Trying to find cheap car insurance for young drivers is no easy task. Many young adults get stuck with an absurdly high insurance bill.
So it’s important to take all the necessary steps possible to minimize your costs and make sure you pay as little as needed.
There are a few things parents and younger drivers can do to make their costs a little less painful. One of the things is to view a quote from more than 2 companies.
An insurer may claim to specialize in offering cheap car insurance for teens and young adults, but there’s no reason to take their word for it. Many companies will claim to have the best rates just to get you in the door.
Once you’re in the door, they give you the runaround and try to make you believe their price is the best you’re going to get. Don’t fall for it. The surest way to guard against this is to shop around.
You’ll be shocked at the difference in pricing from one company to another.
Getting the Best Auto Insurance for Young Adults
If a young adult is ready for the responsibility of having their own auto insurance, here are a few companies that can help…
Nationwide is a natural fit for obtaining the best car insurance for young drivers. As one of the larger insurers, they have the weight to give people better rates. This is true whether a young driver is being added to the family insurance plan or wants to get there own coverage.
Geico Auto Insurance is another good place to look because they offer a family discount package and a few other discounts for young adults. Simply apply with them and see what they have to offer. Compare their quote to Nationwide.
Metromile is an intriguing choice because they offer better rates for drivers that don’t drive as much as everyone else. And young adults are on the road much less compared to every other age group except for seniors. So this company is definitely worth taking a look at. Their motto is if you drive less, you should pay less.
You can also take a look at our insurer guide for a bigger list of good companies to compare.
How Young Drivers Can Keep their Costs Down
Studies have shown that younger drivers are 3 times more likely than others to be involved in an accident. They have very little on-road driving experience and are therefore considered by insurers to be a higher risk profile. For those reasons, insurance companies charge them higher premiums. And it’s been that way for a long time.
So what can you do to get the cheapest rates on car insurance for young drivers? It might seem at first like there isn’t much that could be done.
After all, you can’t change your age. And it will be mission impossible trying to convince your agent to cut you a deal because you’re a good person and you would never drive carelessly. They just won’t go for that.
So are you out of options? Actually, there are a few things that can keep your rates as low as they can go. We’ve already talked about one of them earlier in this article. That was, of course, shopping around.
Now, here are…
Other Ways to Reduce Auto Insurance Rates When You’re Young
Utilizing some or all of the strategies below can trim your costs considerably. And when you’re a young adult or first time driver, every little thing can mean bigger savings.
- If possible, drive a car with a small engine and pick a model considered by insurance firms as safe cars to drive. Take care to drive safely in the first year of getting your license. You will be docked points for speeding, rash driving, illegal parking and similar violations. So make sure that you don’t get points, make any insurance claims or cause accidents in the first year. If you maintain a safe driving record, a year later your auto insurance premiums will go down.
- Driving less can help bring down your costs. Low mileage translates to low risk of causing accidents, leading to smaller premiums. If you add a responsible and safe driver as your second driver, your premiums will be less expensive. The first driver should be more than 25 years of age and a parent is usually a good choice. However, they cannot pretend to be the main driver. This is known as fronting in the insurance industry, which is illegal.
- Choose how much coverage you need in a smart and practical way. Don’t choose comprehensive coverage if you don’t really need it. If you drive a car that just isn’t worth much, then choose the basic coverage. Collision and comprehensive coverage cost way more than your basic coverage. So ask your agent what the cost of each one would be in your state. But again, if your car isn’t worth much, then don’t even consider comprehensive insurance.
- Uncovering cheap car insurance for young drivers can be tricky if you don’t compare rates properly. You have to make sure you are comparing the same type of coverage from each company for the quotes you were given. The lower price given to you by one company might be for a policy that isn’t the same as the other company’s policy. So make sure the coverage for each is identical when judging the rates from multiple insurers.
- Avoid paying insurance in monthly installments. This is more expensive than paying annual premiums because there are more administrative costs for the insurer. Shop around for the best deals on insurance premiums. Ask for quotes from several companies before choosing one. Then try to pay off the insurance for the entire year, instead of in monthly installments.
- Young drivers should buy their car insurance online. Since this involves less paperwork for insurance companies, they offer discounts and cash back incentives for online applications. You can also get one quote from a local company to see if they can beat the quotes from online firms.
- Resist the urge to make modifications to your car. Any modifications you make could add hundreds of dollars to your insurance premiums. Modified cars cost more to replace, and so the insurance firms will hike their premiums for such cars. The only exception is when you add extra safety features like anti-theft devices to reduce insurance premiums.
Lastly, read all your policy documentation before you buy. Find out all the details about the nature of the coverage. Car insurance for young adults can be had if someone is willing to due the little research that needs to be done.
Also, choose only reputed companies that have a proven track record. Many fake insurance firms target unsuspecting youngsters and sell them false coverage. Beware of such scams.
If you follow all of the money-saving tips mentioned above, you have a much better chance of keeping your costs as low as you possibly can. You’ll still end up paying more than older drivers, but at least you’ll save some money.
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