5 Ways to Save Money on Car Insurance Under 25 Years of Age

You may not like it, and, in many cases it really is not fair.  But the fact is, car insurance costs much more for younger drivers.  There is a good reason for these higher rates, though.  As a group, drivers under 25 statistically have a much higher accident rate than older drivers.  That’s not to say that all older drivers are better, safer drivers than younger ones.  Unfortunately insurance companies cannot operate on an individual basis, rates are established (in part) by age group statistics.

So, what recourse does a driver under 25 years of age have?  (Or, in many cases, what recourse do the parents of younger drivers have?).  Here are some ways to save money for drivers in this higher risk (and higher premium) age group.

1. Do some checking around
Not all insurance companies treat younger drivers exactly the same way.  There is probably more variation in premium rates for this age group than for any other from insurance company to company.  As a matter of fact, while most insurers view age 25 as the age at which rates are able to drop, for some companies it is age 23.  Getting married will also typically drop rates even if one is not yet 25 (but don’t get married just to get cheaper insurance – the cost will ultimately outweigh the savings!).

2. Get some training (and education)
Check with your insurance company to see if they offer a driver safety program.  Completing such programs will can result in discounted rates of 5%.

3. And while your at it, get some education, too
If the younger driver happens to be enrolled in school (college or high school), good driving discounts are available with a grade point average of at least 3.0.   These discounts can be as much as 5% to 10%.

If the driver is just getting their license, a qualified driver’s education program can provide for even further discounts, as much as 15%.

4. Choose your car wisely
You cannot do anything about your age and the corresponding premium rates for your age group, your gender, or the town in which you live, all of which affect the car insurance rates.  But you can do something about another major contributing consideration: the car you drive.  Cars featuring safety features (air bags, anti-lock brakes, etc.) and that have high crash test ratings offer lower insurance rates.  It may not be your dream car, but more cash in your wallet can help alleviate that wounded pride. 

5. Keep a clean driving record
Nothing will keep your insurance rates lower than a clean driving record.  Of course, sometimes it may be too late for that.  If you do get a ticket, it may be possible (if the judge allows) to get the ticket removed from you record by attending traffic school.  You are best off to learn, develop, and maintain good driving habits.