There is cheap car insurance for under 25 individuals. Most car insurance for those under 25 is quite expensive because young drivers are considered to be high risk. They do not have the experience needed to correctly deal with the many different driving situations that can occur. But if you are smart and know what to look for, you can find cheap and affordable insurance for young drivers.
Calculating Insurance Premiums
There are many different factors that go into calculating insurance rates. and if you know what they are you can use them to your advantage. Your driving history, car, location, credit history, and more are used to determine premiums. Young drivers have high premiums because they do not have a driving history, so it is unknown if they are responsible drivers. Additionally, insurance companies have collected and pooled information about claims. Young drivers have a higher incidence of being in accidents or making claims.
Each insurance company will determine its premiums in slightly different ways, so comparison shopping is very important when looking for affordable insurance. You will find the price of policies for young drivers to vary significantly. The companies that specialize in this type of insurance, or a very large insurer, may offer you the best rates.
Keep the Price Low
There are many things you can do to keep the price of your insurance low. The type of car you drive will greatly affect your insurance, and the older and safer the car, the lower your rates. Cars that are easy to repair and very reliable are considered to be easier and less expensive to fix and not as likely to be stolen. Where you park the car is also important. If you live in an area that has a high crime rate, then your insurance rates will be more. The best place to park the car is in a garage where it is safe and secure.
Most young drivers can receive discounts if they take a certified drivers education class before they get their license. This class ensures you know the rules of driving. If a driver has been involved in any accidents, then they can remove a few points from their driving record by attending a defensive driving course. This can help to decrease insurance rates. A correlation between good grades and safe driving has been found and there are discounts available if you are a good student. It also may be less expensive to add the young driver onto a parents or relatives car insurance. Though this is only suggested if you have an excellent driving history and low rates to begin with.
Preparing Your Driver
It is important to make sure that young drivers understand how expensive and costly insurance is, and how even small mistakes will make huge changes in insurance. Insurance will not automatically decrease until a driver turns 25. Young drivers need to practice safe and responsible driving to keep their insurance low. Making a young driver responsible for their insurance in some way can be a good idea. For example, if they should have an accident or traffic violation that causes an increase in insurance, then they will be responsible for paying the increased amount.