Car insurance rates continue to rise, especially for teen and young adult drivers. This can put significant pressure on finances, especially in families where parents pay some or all of the car insurance premiums. But by following proven strategies, affordable car insurance for young drivers is possible without sacrificing coverage.
It’s worth looking (literally) for cheap young driver insurance. By reading our experts’ tips, you’ll learn how to reduce teen car insurance costs without having to switch policies or companies. But if you decide to switch carriers, we’ve also included which auto insurance companies have the best rates.
here are 6 tips to get the cheapest car insurance for young drivers
- find prices
- stay in parent policy
- assign the correct car to the young driver
- qualify for discounts
- change your coverage and deductible
- use useful technology
- car insurance for a 16 year old
- car insurance for a 17 year old
- car insurance for an 18 year old
- car insurance for a 19 year old
1. compare prices
Make no mistake: Young drivers incur higher car insurance premiums because statistics show their age demographic is more at risk for accidents and reckless driving. Consequently, it will almost always be more expensive to insure a teen or young adult driver than an older, more experienced driver.
“The youngest drivers are often the most expensive to insure due to their inexperience and general perception of immaturity and responsibility,” says duncan france, owner/agent of duncan france state farm agency in broomall, pennsylvania.
However, it’s a good idea to request coverage quotes from at least a few different insurers and compare offers carefully, experts agree.
“Insurance rates can vary significantly between companies, and this is even more true for younger drivers,” says Greg Martin, president of Florida-based Brandon, Think Safe Insurance, LLC. “That’s why it’s advisable to shop around.”
Janet Ruiz, director of strategic communications for the New York City-based Institute of Insurance Information, echoes those sentiments.
“There are many options for auto insurance. shop online and get comparative quotes. Also, call an insurance broker who handles multiple companies,” she says.
When looking for coverage, look for a company and policy that offers the best value, quality and reputation, as well as an agent you can grow with.
“am best is a company that gives ratings based on the financial strength of insurance companies. Going with a company that has strong financial ratings will ensure that they are in a position to pay a claim if that unfortunate situation occurs,” says Martin. “you can also look for reviews online and j.d. power type ratings to ensure that others are satisfied with the service they receive.”
Also, when evaluating offers and rate quotes, be sure to compare the same types of coverage.
“Different limits and different deductibles can make a big difference. and you want to make sure your young driver has the right level of coverage too. There’s no use having cheap insurance for young drivers if it doesn’t cover what you need when you need to make a claim,” warns Martin.
also choose a reputable insurance agent carefully.
“A good insurance agent will give you good advice as they would their own family and make sure they always act in your best interest,” adds France
2. stay on parent policy
A great place to start looking for teen auto insurance is with your family’s existing auto insurance company. You can request a quote to add your young driver to your existing policy as a primary or occasional driver in a designated vehicle, or request a quote for a separate policy in your child’s name.
“Staying on your parent’s policy allows you to take advantage of some of their preferred qualifications and discounts, possibly including discounts for various policies such as home insurance, multiple autos, and more established credit,” says martin.
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Note that the owner of the vehicle in question must pay for the insurance policy, which means the young driver may have no choice but to stay on Mom and Dad’s policy.
“If the parents own the car or are financing it and have their name on the title, they are the ones who will need to buy the insurance. This will often be less expensive than a young driver purchasing insurance individually for the first time,” says Ruiz. “However, in this scenario, the young driver must live at least partially in the parental home.”
3. assign the correct car to the young driver
The young driver in your household likely has a designated vehicle that he or she drives exclusively or shares with you. but if this car is the most valuable in your family, you may want to reassign your son or daughter to a different car.
“if your young driver is going to stay on your policy, having that driver assigned to the cheapest car in your family to insure is a smart strategy, as this can lower your premiums,” says france. “However, it is generally wiser for the young driver to be listed as the primary policyholder on his own policy with the car he drives the most. With this approach, one or both parents should also be included on that separate policy if they occasionally drive the car so you can take advantage of household discounts like a multiple policy discount, if possible.”
If your child is assigned a car with a high safety rating based on government crash tests and other criteria, you may also pay less.
4. qualify for discounts
In addition to discounts for things like having multiple policies, there are other ways that families and their young drivers may be eligible for rate reductions.
one of the most commonly applied is a good student discount. If your son or daughter earns a B average or better in high school or college, up to age 25, you may qualify for a nice student discount that can cut 5 to 25 percent off your premiums.
You can save even more money if your young driver takes an optional defensive driving course. your insurance agent can recommend an appropriate course available online or in class.
“However, before you pay for a course out of pocket, ask your insurance company if they offer a discount for that class,” Martin advises.
Suppose your child will be attending a college or university more than 100 miles away from home and doesn’t need to take a vehicle with them. In that case, she can also apply for an “out-of-school student” discount, which can lower rates on that policy by as much as 15 to 30 percent.
Note that your young driver may also qualify for an accident-free discount, especially if they are under 21 and maintain a stellar claim-free driving record for a certain period.
another indirect discount to follow? “Parents can also work closely with their children to help them build and improve good credit, which can lower insurance rates for them over time,” France suggests.
5. change your coverage and deductible
Consider dropping collision and comprehensive coverage altogether. If your young driver has an older vehicle, especially one that is not driven often, they may not need comprehensive and collision coverage.
“You can have comprehensive collision coverage and remove it only if your car is paid off. collision is often the most expensive coverage, and you can choose a higher collision-only deductible and a lower comprehensive deductible,” says martin. “Many times, this makes more sense because raising the comprehensive deductible doesn’t necessarily save a lot of money. When considering these options, you want to compare how much coverage you’re potentially losing (the value of the car minus your deductible) versus how much you’d actually save. doesn’t make sense for all situations.”
In general, raising your deductible, say from $500 to $1,500, can significantly lower your annual premiums. just make sure you can pay the deductible out of pocket, if necessary.
6. use useful technology
Your insurance company may offer a telematics device that can provide crucial data about your driving habits when connected to your young driver’s vehicle.
“this is usually a beacon that connects to your vehicle or runs through an app on your phone. A telematics device allows your insurer to provide a truly personalized rate based on safe driving habits. this may result in a lower rate quote,” says france.
Also ask your insurance company if using a dashcam device will result in rate savings.
“Having a second set of eyes on the road in the form of a dashcam will provide transparency if an accident were to occur,” says Christopher Lee, owner of eyewitnessdashcams.com in Santa Clara, California. “Insurance companies may offer discounts on dash cams.”
Which auto insurance companies have the best rates for young adults?
To help you shop for the most affordable coverage, in the chart below you’ll see the average rates per company for each state for drivers 20 years of age for the state’s minimum liability limits.
More Resources: Teen Car Insurance Rates
To see the average car insurance rates for teens, the items listed below present rates by age, state, and gender:
final thoughts on how to get low insurance for young drivers
Insuring a young driver is never as cheap as we want. they are considered higher risk factors because of his inexperience and maturity, and for good reason. By following our tips, you’ll be on your way to getting the best possible rates for your young driver.
In addition to the cost of insurance, having a young driver can cause you many sleepless nights of worry. Making sure you have the right insurance coverage will give you the peace of mind that you are adequately covered while traveling.
