Young Drivers Insurance

Don't break the bank

Getting a first car is one of the most exciting times in any young person's life. Unfortunately, it also comes with some very bad news: you'll have to get insured. For young drivers with a new car, insurance can be anywhere from $1,000 per year to over $5,000 per year. Even for those driving an old beater, insurance rates are usually still high enough to make you question whether having a car is worth the cost.

Why is Insurance So High for Young Drivers?

Young drivers are more likely to get into an accident than more experienced drivers. The main reason for this is inexperience and a greater propensity for taking risks. Sadly, even though many young people are great drivers, there are enough idiots out there for all young drivers to be considered a risk for insurance companies. Because of this, young drivers have to pay somewhere between 25 and 50 percent more for insurance than their parents. This is a problem for many young adults, because they have little or no income.

Insurance Tips

Here are some ways to help keep your monthly insurance payments to a minimum:

• Do get good grades. Many states give lower premiums to students who do well in school, proving it pays to do your homework.
• Do be happy you live in the suburbs. This point, of course, only applies to people who actually live in the suburbs. Cheaper car insurance is one of the only perks for young people who live out in the boring 'burbs.
• Do shop around. Look around before you sign up with the first insurance company that gives you a quote. Do some research and find out who will give you the lowest premiums. You may be shocked at how big of a difference there will be between companies. A little research could save you over $1,000 a year.
• Don't drive a sports car. More than anything else, the rate you get depends on the kind of car you drive. The more the car's worth (and the faster it goes), the higher the rates. It just makes sense.
• Don't crash or get caught speeding. Every ticket you get and insurance claim you make will drive up your rates.
• Don't get comprehensive coverage. Unless your car is nice and new, it's a good idea to turn down comprehensive coverage (which covers you for non-collision events like a car fire or theft). It costs more and it's not really worth it if your car is junky to begin with.
• Don't be young. Okay, this one you don't have a lot of control over. It probably won't make you feel any better in the short term, but you be assured that your rates will go down as you get older (assuming you don't get any tickets or have any collisions).

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