If you are younger than 25 you can expect to pay more for car insurance. This is not because insurance companies want to punish young people. Statistics show that although people from 16-25 represent only 11% of all drivers, they are involved in 25% of all accidents. There are things you can do to reduce your premiums, however, even if you will always pay more than older drivers. Young drivers pay 100% more for insurance than another high risk group of drivers, those from 60 to 74.
There are discounts available for young people that can help them save on car insurance. Those who earn at least a B as a student can qualify for a good student discount. The discount can vary from company to company but can be as much as $300 per year with some companies. It might be possible to save as much as 15% by taking a driver’s education class. It is also possible to save by taking a course in defensive driving, possibly as much as 10%. If you do not drive as much as the typical driver, you might qualify for a low mileage discount.
Another way those younger than 25 can save on car insurance is by simply shopping around. The amount you might save from one company to another might shock you. Some say a driver that age might be able to save $1,000 or more just by shopping for the best offer. The reason rates can vary so much is that because a young person may not have much have a record to prove how good a driver he is, insurance companies consider other factors differently. For example, the good student discount may be much greater with one company than another. Some companies actually charge more than their competitors because they are trying to scare inexperienced drivers away.
If you do still live with your parents, the cost of your insurance might be lower if you are added to your parents’ policy. Again, how much can be saved varies greatly from company to company, so comparison shopping is important. One advantage of being on the policy your parents have is that some companies will allow them to designate you as being the driver of the oldest car.
Few people know about one way young drivers and others can save on insurance. It is that those who do not make a claim for a certain amount of times get a bonus and get a reduction on their premiums. One way young drivers, who don’t have much experience, is by getting a policy with a bonus accelerator. Such a policy may be for ten months, but a driver can get a full year’s bonus. An insurance agent can also tell you what types of cars are the cheapest to insure.
If you are younger than 25, you will pay more for car insurance than older drivers. There are many things you can do to cut the cost of your premiums, however.
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