Buying Cheap Car Insurance for 21 Year Olds

June 19, 2013

It is very difficult to buy cheap car insurance for 21 year olds, since insurance for young drivers is still considered a high risk. According to statistics, 21 year old drivers are more accident prone since they have spent less time on the road and are therefore more likely to be involved in a road accident. As a result, car premiums could be fairly expensive. However, there are a few companies that do provide insurance for younger drivers. If you are a 21 year old driver, do not despair. There are ways in which you can choose cheaper car insurance by following a few simple suggestions on how to go ahead.

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Know What You Want

Make a list of what you need out your car insurance before you start shopping around. Knowing your requirements will help you make the right choice since there are fewer firms that offer insurance to younger drivers.

Shop Around

Shop around for the best option. Just comparing several insurance policies will show you that there is a great deal of difference in pricing between policies. Get as many insurance quotes as possible, either directly or from the Internet so that you can take one that is most economically viable for you.

Take Up an Additional Examination

There is an examination called the Pass Plus Driving Exam which is an extensive training course. This helps new drivers become better drivers and will therefore help you get up to 35% off on your car insurance.

Pay an Excess

There is a standard minimum amount that you would need to contribute toward any car insurance claim. This is called an excess. If you offer to pay a slightly higher excess, your insurance premium will be at a lower rate.

Pay a Single Premium

Try to opt to pay your premium in one lump sum instead of monthly installments. This will reduce the rate of interest and you will end up having your insurance significantly cheaper.

Add an Older Named Driver

If you add a named driver to your insurance, and if the driver is older, then you will be able to get your insurance premium reduced by around 10%.

Increase Security

Add security features on your car. Most insurers will give you the policy a bit cheaper if your car is less likely to be stolen from wherever it is parked.

Purchase Online

Try to purchase your policy online. This is generally cheaper, since the insurance companies' costs are less. In the modern age, many policies have a discount attached to them if they are purchased online.

Third Party Fire and Theft Policies

Opt for third party fire and theft policies as these are the cheapest. In fact, most insurance firms offer this type of coverage for 21 year old drivers. This means that you are insured from fires and theft of your vehicle so long as you or your vehicle are not the influencing factors behind any subsequent claims.

Female Drivers

Women drivers tend to get cheaper insurance. Therefore, if you are a woman, make use of this fact to get the lowest insurance rates possible.

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Related Questions and Answers

Are Car Insurance Rates for Young Men Higher than Women?

Statistically, car insurance for young men is higher than those for women in the same age group. The reason for this is that men and women exhibit different driving behaviors that make men more susceptible to accidents. Young males are more aggressive and prone to hostile behavior that will cause crashes and accidents. They are also more likely to exceed speed limits and drink and drive. But as men age and cross over 25, their insurance rates go down. This is because when men age and get married, experience brings about safer driving rates. Take a look at the research findings regarding women drivers' sociographic characteristics and accidents, Accident Analysis and Prevention, to know more.

Do Car Insurance Rates for Men Drop Once You Hit 20 Years Old?

Car insurance for 20 year old men automatically gathers a higher insurance premium rate as compared to women in the same age group. But once you cross over the 20-25 age limit, the rates level out and actually fall. There are many reasons for this. Younger male drivers have been statistically proven to be more at risk for accidents as compared to women in the same age group who drive much more carefully. But as drivers age, they garner more experience in driving and judgment. If you have a clean driving record and no accidents up to the age of 25, you can get as much as a 20% discount on your car insurance rates. The rate reduces even more if you are married and over the age of 25.

Does the Military Car Insurance Discount Apply to Young Drivers?

Yes, there is a special military car insurance discount that is applicable to young drivers. But this will vary from state to state and the insurance provider. For example, GEICO is offering a military discount for five year accident free driving, seat belt use, defensive driving classes and for young students who have managed to get maintain a B average. You will need to be a full time student and in the age group 16-25 to be eligible for this discount. Even if you are not in active duty, you will get the discount if you are a federal employee like a Member of the National Guard, or Reserves.

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