After acing the tricky written test and passing the nerve-wracking road test, you’re officially a licensed driver! With the exciting road trips ahead, it’s time to get insured—without breaking the bank. The question is: does cheap car insurance for drivers under 25 exist? The answer is: not exactly. On average, parents see a premium increase of 111% after adding a teen driver to their auto insurance policy. If you’re paying for your insurance on a policy separate from your parents, you’re looking at an even higher cost. However, know that there are reasons why getting cheap car insurance for teens and young drivers is so tough and know that there are still ways you can save money.
Drivers Under 25 are High-Risk Drivers
As the decades go by, drivers aged 18–25 are less involved in fatal accidents than the generations before. That’s the good news. The bad news is statistics show that young adults are still high-risk drivers. In fact, the #1 cause of death among young adults is motor vehicle accidents. Teens alone are 3 times more likely to be involved in a fatal car crash than drivers over the age of 20. On top of that, statistics from the organization End Distracted Driving show that almost 60% of accidents with young drivers were caused by distracted driving. Although these are alarming facts, knowing them can help prevent you or a friend from becoming a statistic.
Saving Money on Car Insurance for Young Drivers
Auto insurance for young drivers often comes at a high cost, but there are ways to keep coverage costs down. Here are a few ways you can save on auto insurance.
1. Get a Multi-Car Policy
Many insurance companies offer discounted rates for multi-car policies, so adding your car to your parents’ policy is one of the best ways to save money on car insurance. Instead of purchasing your own car insurance policy, find out if your parents are willing to add you to their policy. This is one of the best ways to save money on auto insurance costs for young drivers.
2. Choose a Safer Vehicle
Along with adding your vehicle to your parent’s policy, you could also save money by choosing a safer, more practical vehicle. If you’ve got a sporty new ride, this can set you up for costly insurance. Coverage providers consider the fact you, as the policyholder, are under 25 and that you also have a flashy vehicle. Based on this, your insurance company will label you a risky driver in a risky car. This will get you a sky-high insurance quote. However, if you’re on the road in a safer, less conspicuous vehicle, such as a used Chevy Malibu, Honda Accord, or Toyota Camry, you’ll be looking at cheaper rates than you would if you were driving a brand-new Mercedes E-Class convertible.
3. Get Good Grades
If you’re in school, there’s yet another way you can save money on insurance. Many insurance companies offer a discount for good grades for drivers that maintain GPA of 3.0 or higher. Understandably, insurance providers believe drivers with good grades are responsible in the classroom and therefore responsible on the road. Good grades are a great incentive on their own, but saving money on auto insurance is certainly another perk.
Becoming a driver at a young age is exciting. Spending money on car insurance is one of the not-so-exciting things about driving, but getting covered is important. Take the things you’ve learned from this article with you and get insured as soon (and cheaply) as possible.
Freeway Insurance specializes in providing cheap auto insurance to high-risk drivers, including drivers under 25. We’ll compare rates from top insurance companies to find you the best auto insurance at the best price. Get a free car insurance quote online or over the phone at (800) 777-5620.