Cheap Car Insurance For Young Drivers: Get The Best Deal

TLTR: In this article, we will explore cheap car insurance for young driver and why it can be so difficult to find it. The blog also explores how you can buy cheap car insurance as a young driver. Lastly, we will also explore the importance of car insurance and some frequently asked question. 

According to an article on Forbes Advisor, age and gender can impact car insurance rates significantly. You are likely to pay more premium if you fall under the age range of 16 years to 25 years. The article mentions that car insurance rates only start to go down at the age of 25 years.

Young drivers are often told that cheap car insurance is not possible. However, this isn’t entirely true. There are ways for young drivers to get cheap and full coverage car insurance policies through various discounts and other strategies which are discussed in the sections below.

In this blog

Is Car Insurance Really That Important

Auto insurance is essential for drivers to protect themselves in the event of an accident, theft, vandalism, or natural disaster. It’s also a requirement in many states. Here are some facts and statistics to tell you how important car insurance is.

According to the Insurance Information Institute (III), it is illegal to drive without some or the other form of auto insurance in all the states. Driving with insurance shows your financial responsibility as a driver to both yourself as well as the third party.

The Wallet Hub writes in an article that, in an event where your car is totaled, the insurance company will pay the actual cash value. So, for example, let’s say a tree falls on your car and it’s completely damaged.
If your car’s actual value is $5,000 and the repair costs you $5,500 then the insurance company will pay you $5,000. Pretty neat, isn’t it?

According to Insurance.com, car repair costs for a low to a mid-range car can cost you up to $1,500 on an average. Paying for such expenses without car insurance can add a tremendous financial burden on you as a young driver.

When we hear about car accidents, they seem like a distant problem. Regardless of how invincible you feel or how well you drive, car accidents can happen to anyone. According to the Wandering RV, on average, there are about 16,438 car accidents occurring daily in the States.

These are only some facts about cars and car insurance. Getting a good policy can help you become a more confident driver. It can also help you be financially responsible.

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How To Find Cheap Car Insurance For Young Drivers

Compare Quotes To Get Cheap Car Insurance For Young Drivers 

When searching for an insurance company, it is advised to get quotes from at least three companies. It will pay off in the long run. Let’s consider an example. So, you get a quote for comprehensive auto insurance for say $1,700 per year, from a particular company. Now, when you compare this price, you may find a quote that provides similar coverage at a much cheaper price.

People should always compare prices and check if a business has been financially stable before purchasing its service.

Get On Your Family’s Insurance Plan

As a young driver, you always have the option to get on your family’s auto insurance plan. For example, if your parent’s existing policy has collision coverage as well as bodily injury insurance then you can get an extension for your policy as well.

Ask For Student Discounts

If you are someone who is still in high school or college or were recently a part of one then you may get a student’s discount. According to Policy Genius, most insurers offer student discounts.

Even though cheap car insurance for young drivers is hard to come by, with a student id you may be able to get a good enough deal.

Take Defensive Driving Course To Get Cheap Car Insurance For Young Drivers

A defensive driving class will help you become a better driver and save your wallet. How? By training for a defensive driving course, you can know how to act in situations that are frightening. For example, with a defensive driving training course, you can even make it out alive even in the most horrifying accidents.

This driving course is the best way to improve as a safe, efficient driver while also saving money on car insurance premiums.

Look For Additional Discounts

Being good in school might help out because some insurers give discounts for students who get good grades. So, as a driver who doesn’t have any accidents or moving violations, you may be able to get a better rate. Also, if you have drivers’ education courses under your belt, you still may be able to get cheaper rates.

You may also get a discount for being in certain organizations such as specific fraternities, sororities, and honors societies.

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Get A Higher Deductible

When money is tight, many people choose to increase their deductible or cut coverage. But doing so comes with many drawbacks.

That is, most don’t actually read what they are giving up and start cutting without understanding the consequences. So, in a situation where your car gets totaled, having a larger deductible sum will put you under financial pressure.

Remember: Cutting coverage and raising your deductible aren’t the only ways to save!

Maintain A Good Credit Record

To save money on your insurance premiums, it is helpful to build a good credit history. Insurers look at how well you manage debt when they price policies. Research shows that people who effectively handle their finances have fewer claims.

To protect yourself from any damage to your credit score: pay all bills promptly. Also, don’t get too much further into debt than needed. Lastly, keep the balance of what you owe as low as possible so there isn’t more risk for lenders if something goes wrong with repayment during an emergency or financial hardship.

Pay In Full To Get Cheap Car Insurance For Young Drivers

If you have the resources, it’s always better to pay in full. While it is not mandatory or required to pay in full, doing so can help you get discounts. Some insurance companies can even offer up to 15% off on premiums when you pay them in full.

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What Are The Different Types Of Cheap Car Insurance For Young Drivers Available

Although you may already know how auto insurance works, did you know that there are different types of car insurance and what they are? If you’re looking for cheap car insurance for young drivers, knowing the different types of auto insurance along with their coverage is an important step in finding the right policy for you. The following are basic types of car insurance along with how they work and what exactly do they cover:

Liability Coverage 

Liability coverage is a legal requirement in most US states to drive a car. This insurance can help cover injuries and property damage to others that you are responsible for resulting from a covered accident.

Bodily Injury Liability 

Bodily insurance liability helps in covering damages for injuries to others that you become legally responsible for resulting from a covered accident.

Personal Injury Protection (PIP) 

Personal injury protection insurance usually covers certain medical expenses and loss of income that can result from a covered accident. This usually depends on the limits of a policy but personal injury protection can potentially cover up to 80% of medical and other expenses stemming from a covered accident.

Property Damage Liability

Just like bodily injury liability, property damage liability helps in covering for any property damage caused to others because of a covered accident that you are legally responsible for.

Collision Coverage 

Collision coverage usually covers damages that happen to your car after an accident that involved another vehicle. It may help to either repair or replace a vehicle covered by the insurance.

Gap Insurance

Gap insurance can help certain drivers cover the amount that is owed on a car loan in the scenario of total loss or theft. This is because car value can depreciate quickly and an auto insurance settlement could possibly not be enough to cover a loan’s cost.

How Much Does Car Insurance Cost For Young Drivers

According to Bankrate, here is a simple breakdown of car insurance based on age and gender:

Age Average rate for males Average rate for females
16-year-old $2,783 $2,280
17-year-old $2,612 $2,141
18-year-old $5,650 $4,844
19-year-old $4,487 $3,807
20-year-old $4,098 $3,492
21-year-old $3,166 $2,769
22-year-old $2,913 $2,578
23-year-old $2,733 $2,446
24-year-old $2,590 $2,332
25-year-old $2,183 $2,038
30-year-old $1,869 $1,832
35-year-old $1,813 $1,790
40-year-old $1,748 $1,532
50-year-old $1,601 $1,591
60-year-old $1,552 $1,537
70-year-old $1,701 $1,670

Cars That Get The Cheapest Car Insurance

The car you drive also affects the amount of insurance you pay. If you are a young driver, then it’s better to get a cheaper model.  According to the CDC, teen drivers, especially between the age of 16-19 are likely to crash their car more than any other age group.

So, in order to become an experienced driver, according to Nerd Wallet, here are the cheapest cars to insure:

  • Subaru Outback.
  • Jeep Wrangler.
  • Honda CR-V.
  • Subaru Forester.
  • Ford Escape.
  • Ford F-150.
  • Chevrolet Equinox.
  • Jeep Cherokee.
  • Toyota Tacoma.
  • Toyota RAV4.

Conclusion

In order to get cheap car insurance for young drivers, don’t just look at the companies which will help you lower your premium but increase the risk, but also try looking at the best auto insurance companies. You’ll be surprised at the amazing prices you will be able to find simply by comparing insurance carriers.

If you need help buying car insurance for a young driver, we can provide the information and advice to get started. Our team of experts is ready and waiting to partner with you. Get in touch with a local insurance agent today to get a free quote!

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Frequently Asked Questions (FAQs)

My Teen Driver Only Has A Learner's Permit. Do I Need To Add Them To My Car Insurance Policy?

The answer to this question depends largely on the insurance requirements of your state as well as your insurance company. There are times where your policy would cover your young driver until they receive their driver’s license, most states don’t mandate that drivers with permits have insurance. However, all states except New Hampshire require that licensed drivers to carry insurance.

Are There Specific Car Insurance Coverages For Teen Drivers?

Though there aren’t any required coverages unique to teens, there are some that are especially beneficial to new drivers. Besides the state-required coverages, Roadside assistance may be useful. This is because a 2016 article on automotive IQ stated that 448.36% are completely clueless about basic car-related tasks. It is important to talk to teens about basic car maintenance.

If My Teen Moves Away For School, Should They Stay On My Car Insurance?

It depends. The insurance requirements might be different if your teen moved to a different state. That is why it is important to double-check with your company about whether they offer insurance in the state your teen is moving to.  Also, check to adjust your policy to meet that state’s legal requirements.

How Will My Car Insurance Change, If My Teen Wants To Get A Job Delivering Pizzas?

In cases like this, where your teen is transporting goods for fees no matter what the goods are, your personal policy will most likely not cover them in the case of an accident during their working hours. In this case, as well, it is important to talk to your insurance agent about additional coverage options. Your teen may be eligible for a commercial policy of their own depending on the situation.

In this situation, you can also opt for commercial auto insurance. Any commercially used vehicle is covered under the policy.

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