You may be under 25 as a driver or the parent of a under-25 driver. This means that there can be some sticker shock when it is time to insure your child behind the wheel. The cost of young person insurance, particularly for males can triple your family’s car insurance bill. This is particularly true if the driver is included in the insurance for a new car with comprehensive coverage, and not just liability coverage. Why? Why? Because, demographically, young people and particularly males under 25 years old have the highest number of accidents (and the most serious and fatal) of any age group. This means that insurance rates for this group will rise regardless of how responsible a driver may be.
It doesn’t sound fair does it? This is how the insurance industry operates. There are things you can do, as a parent or as a driver under 25, to lower your insurance costs. Let’s look at some of them.
Good grades are a must for students
If you’re still in school, get good grades. Although you don’t yet have a driving record (and your insurance rates won’t drop significantly until you turn 25, provided you remain a safe driver), insurance companies love responsible young people and will give them discounts on their insurance. You look more responsible if you have good grades. Your insurance company will usually give you a discount if you have a B average or higher.
Learn how to be a safe driver by taking a certified driver safety course
You might think that you are Joe (or Jane) Cool behind a wheel. But you did pass your driver’s exam. Nobody can tell what you should do. If you are looking to save money on your car insurance, it is worth taking a driver safety course. These classes have been proven to reduce accident rates, and most insurance companies will offer a discount for you if you can show that you have taken one. You should check with your insurance company to see if they offer a safe driver class discount.
Take a look around
This brings us to the third point. It doesn’t matter how long your insurance company has been around, if they don’t offer a competitive rate, it should be looked at. It’s easy to search the internet and find a better rate with another company. You can at least find another company willing to offer you a better rate. Then, bring the offer back to your company to see if they will match it. They most likely will.
Are you a member of more than one insurance company? Ask for multi-policy discounts
This is a fact. If you have home, car, and student insurance with the same company, most companies will offer a discount on your premiums. If they haven’t, they should. Ask.
You might consider driving a “beater”
No, I am not referring to a broken down car that won’t get you from A to B. But I’m talking about safe cars that aren’t new. You can just add liability insurance to it instead of comprehensive. Because you are not covering as many, this alone will get you lower rates. You might be surprised at how little you actually pay for insurance.