It is generally known that young drivers who are under the age of 25 pay the highest car insurance rates. This is because they have bad driving records and more crash accidents than others. So if you are a young person, insurance providers will automatically place you in the high-risk category and higher the risk, higher will be the cost of insurance premiums. Bottom line is that car insurance for young people is definitely a costly affair.
Nevertheless, not every car insurance company takes this view of young drivers. Young drivers can still cut costs and keep their insurance premiums low by looking out for some of the discounts offered specially for them. Most insurance companies offer discounts for young insurance holders who take a formal defensive driving course. These insurers acknowledge that driver training produces safer drivers and give discounts up to 10%.
Insurance companies also offer discounts if youngsters are prepared to put a ceiling on how many miles they drive each year. Young drivers who do not plan to drive a lot can look out for this kind of offer.
Your good grades at school can actually pay off. Young drivers can reduce their car insurance premiums by the student discounts that are offered by most insurance companies. Many insurance providers offer discounts that can knock off 5 to 30% from the premiums for students who have a grade point average of a B or higher.
Teenage drivers can also be added to their parent’s car insurance policy. This is a cheaper option than going for a separate insurance policy. While shopping for car insurance, young drivers and their parents should ask for higher deductibles as long as they can afford it. It is also safe to consider higher liability coverage limits, much beyond the state’s minimum limits.
While purchasing a car, it is better for parents of youngsters to avoid buying high performance vehicles like sports cars and SUVs. Small sports cars usually carry higher insurance premiums, as they are more risk laden than other vehicles. Instead, one can opt for a mid segment car.
Young people who want to renew their car insurance policy might have to pay more if they have been recently involved in any accident or a serious traffic violation like drunk driving. They fall out of the accident-free bracket and will be placed in a much higher risk group increasing their car insurance rates dramatically. Hence young car insurance holders should take care to drive safely and maintain a clean record.
Stephen Mcbride is the webmaster of http://www.low-cost-car-insurance.biz a site dedicated to information on low cost car insurance
