Age plays a huge role in determining the price that you pay on auto insurance premiums. The reason that age has such a big influence on car insurance prices is due to the fact that certain age groups get into fewer accidents and involved with less damages than others. Young drivers that are under the age of twenty-five tend to get into the most accidents compared to any other age group. Since the accident numbers are so high for this group, it is very difficult to find a good deal on car insurance for under 25 year olds. Whether you are 16 years old and just got your license or have been driving for a few years and gaining experience, if you are under twenty five years old, your premiums are going to be higher than average.
Why It’s Hard to Find Cheap Policies for Drivers Under 25
The reason that insurers picked age 25 as the cutoff point for getting better prices has to do with statistical trends and accident rates. There is a significant drop off in the number of accidents after individuals turn 25. There are many theories as to why the decline in accident numbers may occur. I speculate that it has something to do with drivers gaining more experience on the road, learning from mistakes that they made during their younger driving years, and being smarter, more equipped adults to handle the challenges of the road. Plus, many people at this age are raising families, so they are much more determined to drive safely.
If You are a Driver Under 25 Years Old: Ways to Save $
If you are trying to get a policy that provides cheap coverage for individuals under 25, realize that it is not going to be easy. In fact, you may not ever get what would be considered a “cheap policy,” but you may be able to find ways in which you can save yourself some extra money. When you are a young driver, getting any savings are better than getting none at all; remember that.
Combine coverage with your parents – Combining auto insurance coverage with your parents can really help you increase your savings. Talk to your parents about getting a joint insurance policy or “bundling” your policy through their provider so that you can save. This is an extremely effective saving tactic that all young drivers should try to implement.
Take the highest deductible – It is probably a good idea for most drivers to take as high of a deductible as they can afford. You can always pay for small damages to your vehicle out of your own pocket if anything were to happen. By taking a hire deductible, individuals looking to get auto insurance for under 25 year olds can save a lot of money.
Choose your insurer wisely – In order to get the best car insurance, it is important to choose a quality insurer. You don’t necessarily want to get lured into an insurance company that has the cheapest rate, because often times they will have unreliable customer service. Always compare quotes, but make sure that you read a review of each company to make sure that they are reliable before you sign up for a policy.
Unique Savings Opportunities With Every Company
Each auto insurance company is going to have a lot of different and unique ways to save you money on your under 25 insurance policy. Some companies will provide discounts for no claims, others will give you big savings just for taking some driving classes, and the list goes on. Since each driver is unique (e.g. has a different car, different risk level, lives in a different location), the savings opportunities are going to vary. That being said, if you desperately want to get the cheapest policy, you should find out (and become eligible for) all of the savings opportunities that you can. If you take action to save, you should be able to get a policy that you can afford and feel good about.