Car Insurance Saving Tips for Young Drivers

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Car insurance for teenagers and young adults can be extremely expensive.  The statistics for under 21 year old drivers show that they are the most likely to get in a car accident.  If a teenager has little driving experience there is little evidence to contradict these numbers.  There are some great ways for young drivers to save money on their auto insurance premiums.

Build Good Credit – Credit scoring is not discussed very often when discussing car insurance for a young adult.  The fact of the matter is credit scoring will be a big factor in determining car insurance prices for most of a driver’s life.  Car insurance companies typically can’t punish young drivers if they have not established credit.  However, many companies utilize credit scores along with a mathematical formula to come up with an insurance score to price an auto policy.  Look to build solid credit as this will help keep your premiums low.

Use Available Discounts – Car insurance discounts are a great way to lower car insurance premiums for young adults.  One of the best ways to save money is by taking advantage of the good student discount.  This applies to a driver in high school or college who is able to maintain a B grade point average.  Along with good grades some car insurance companies will provide discounts by taking a defensive driving class.  Other discounts to keep in mind where you can save as much as 10% are affiliations such as members of the military or being a federal employee.

Drive an Older Car – One of the best ways to save money on car insurance is by driving an older car.  There are 2 nice benefits to using a car that has a lot of use.  The first is the cars value will be lower and car insurance companies will assign a smaller risk to insuring the car.  The second is it will be easier to increase your collision and comprehensive deductibles.  These deductibles are typically not required to be carried by states and can help save hundreds of dollars by increasing or eliminating them.  The main risk you will carry in doing this is by taking on more financial responsibility for accidents or damages you incur with your car.

In addition to the above steps to save it is always a good idea to shop around with different companies.  Each company will likely have different ratings for credit score, discounts and the type of car you are driving.  It is also helpful to look for additional tips to save, such as for teens under 18 years old as well when it is time to go shop for car insurance .

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