Car Insurance Young Drivers

Finding car insurance for young drivers can turn out to be a tough experience, since most car insurance companies often charge higher premiums for young and inexperienced drivers. But there are still plenty of ways to find the cheapest coverage without sacrificing coverage or extras.

The majority of young drivers with insurance are often covered with their parents’ car insurance coverage. These young drivers are often listed as “secondary drivers”. Depending on the circumstances, this can either save both parties a small amount of money or cause the parents’ insurance rates to be raised anywhere from 50% to 100% of what they would normally pay. It’s usually a good idea for parents to comparison shop, as these rates can vary greatly from company to company.

The type of car a young person drives can also affect their insurance rates. A young person can get cheaper car insurance by simply driving a safe and modest vehicle. Having safety features such as air bags, anti-lock brakes and an alarm system can help save more money on their premiums. A fast, flashy or expensive car often translates to higher insurance premiums, especially if these vehicles are a target for thieves or known for being involved in accidents frequently.

Most car insurance companies offer young drivers a “good grades” discount if they are showing exceptional scholastic achievement. This discount is open to young drivers who are taking high school or college courses. The requirement for taking advantage of this discount is to have and maintain a grade average of B+ or higher, or a G.P.A average of 3.0 or higher. Young people with car insurance can save anywhere from 5% to 20%, depending on the size of the discount.

Another way to cut the costs of car insurance for young people is to simply buy only the minimum state-required liability coverage. Liability coverage usually includes bodily injury liability for one person, bodily injury liability for all injuries in one accident and property damage liability. The minimum limits for most states average at $25,000, $50,000 and $25,000, respectively. While having the bare minimum liability coverage can save young drivers money on their car insurance, it can potentially expose them to lawsuits to recover any amount that exceeds their liability limits, especially if they are at fault.

Taking a defensive driving or driver safety class can also bring lower rates to young people looking for car insurance. These classes are often available at high schools and community colleges. Enrolling in one of these classes shows the insurance companies that a young driver is committed to safe driving, resulting in their risk factor being lowered. Young drivers who complete these courses can save $200 or more per year on their premiums. For young drivers who do not drive very often, a “low mileage” discount is available, allowing them to keep their level of coverage while they save money on insurance costs.