Automobile insurance is expensive no matter who you are, but it’s particularly pricey for new drivers and young adults. In fact, insurance rates don’t tend to drop until you reach the age of 25, meaning some young drivers could be facing nearly a decade of high insurance rates, regardless of how safe they are behind the wheel.
Luckily, there are a few ways you can find better auto insurance rates for young drivers, and the best advice is to shop around until you find the right insurer and the right price.
Compare Rates From Multiple Insurers
Normally, when people shop for large-ticket items, they shop around to make sure they’re getting the best price and product before committing. Auto insurance is no different. There are many insurance companies out there that all offer very similar coverage, but the premiums they charge can vary greatly.
When you're looking for the best insurance for your young driver, get quotes from multiple agencies or brokers before choosing your coverage, and this will guarantee you get the coverage that is right for your teen at a price that you feel comfortable with. Most insurance companies have online tools you can use, so you may not even have to talk to someone to get the quotes.
Look For Possible Discounts
Just as some retailers and manufacturers offer added bonuses to their products—things like warranties, rebates, and loyalty discounts—some auto insurers also offer discounts for various things. When you're shopping around for insurance, ask if the insurer offers any young-driver discounts for:
- Having completed a driving or defensive driving course from a reputable driving school
- Having an anti-theft or alarm system installed in the car
- Good students
- Loyalty programs for families that have multiple policies with the same insurer
- Vehicle discounts for having multiple vehicles insured or for vehicles that aren't driven often
Ways to Lower Insurance Premiums
On top of finding the best price on premiums for the most comprehensive coverage, there are also ways you can reduce the premiums your young driver will have to pay. For one, many insurance companies offer safe driver discounts for drivers who have been on the road for multiple years without any incidents.
While it will take time to build up this history, being a safe driver will pay off in many ways over the years. You can also increase the deductible on your policy, and while this means you will have to pay more if there is a claim, it will reduce your monthly premiums. The car also makes a difference, because insurance rates will be lower for a car with low theft incidents, good crash-test scores, and smaller engines.
Another way to lower insurance rates for a new or young driver is to have an experienced driver on the same policy. Regardless of whether the young driver is the primary or secondary driver, sharing a policy with a proven driver can reduce the cost of insurance.
Shopping around for insurance rates is the best way to ensure the lowest premiums for a new driver, so never settle for the first offer that comes along without comparing other rates. It’s also a good idea to look for the various discounts insurance companies offer, especially since so many offer discounts for drivers who have completed driver training.
If you haven't thought about it yet, sign your kids up for classes today our Littleton drivers ed facility or one of our other convenient locations to ensure they can take advantage of all the discounts offered to young drivers and secure the lowest insurance rates.