How Can Young People Pay Less for Car Insurance?

by Lori Lapierre

    A little extra effort -- such as good grades -- can save younger drivers money on their insurance premiums.

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    Car insurance is necessary to protect yourself and your assets in the event you cause an accident. But even with a good driving record, drivers under 25 typically pay more for insurance rates; accident statistics support that drivers over that age tend to be more careful behind the wheel. This leads to fewer accidents and injury payments for an insurer. But even younger drivers can find a few ways to ease their premium rates.

    Step 1

    Work for good grades in high school or college. It is believed that young drivers who keep up their grade-point average in school are more conscientious drivers. Many insurance companies offer discounts to students who provide a copy of their grade card showing A's and B's.

    Step 2

    Say on your parents' policy. If your parents are in good standing with the insurance company, adding a teenager or young adult to their policy will be less expensive than if you get insurance on your own.

    Step 3

    Take drivers training beyond basic driver's education. A defensive driving course teaches additional skills, such as how to avoid an accident, how to use the car's safety equipment properly to avoid injury and how to stay calm behind the wheel.

    Step 4

    Drive a less expensive car. Teens or young adults driving an expensive sports car -- that will cost a pretty penny to repair after an accident -- are going to pay more insurance for that same individual driving an older, larger model.

    Step 5

    Raise your deductibles. Keep a higher deductible -- such as $1,000 instead of $250 -- on collision and comprehensive coverages. These cover damage to your vehicle, and are typically the most costly in a total premium. Set aside money to cover the difference in the event you are in an auto accident, and enjoy paying a lower rate to the insurer.


    • Rates typically go down for those who get married before age 25; especially when spouses combine their insurance policies with one company for a multicar discounted rate.


    • Avoid traffic tickets -- such as speeding -- to keep a clean history and lower rates.

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