Car insurance for persons under 25 is more expensive because these inexperienced drivers are considered more dangerous. Historically, there has been more damage done by younger drivers than by older drivers with more experience on the road. There are several factors that contribute to the high cost of insurance for those under 25, and cheaper car insurance may be available if you are smart about elections.
High Claim Factors
The main reason why insurance is expensive for young people is due to the high amount of expensive claims. Some of these claims are related to drunk driving accidents, excessive speeding accidents and other high damage incidents. However, a lot of these claims are for simple fender-benders and driveway accidents as well. If you can afford to pay for minor damages out of your pocket instead of filing a claim, you will be able to get less expensive car accident insurance. You may even consider electing a high deductible policy that only starts paying for a claim if it exceeds an amount you can afford to pay out of pocket. This will keep your premiums lower.
Marriage & Family Discounts
Not all young people are risk takers on the road. In fact, statistics show that married drivers are often less dangerous than single drivers. This means you can get cheaper car insurance if you are married and inform the insurance company of this. Once you have a baby, you may also get insurance deductions. Parents traveling with babies in the car are often among the safest drivers on the road. Similarly, those under 25 who are not students but hold a full-time job are often safer drivers. Supplying this information to your company will get you the cheapest car insurance for under 25 individuals.
Safe Driver Discounts
Attending safe driver classes or going to driving school before you get your license will make your insurance less expensive. Defensive driver training is thought to reduce the risk of accidents and safe insurance companies money. You can look into programs offered at your school and at your local Department of Motor Vehicles. Most states also certify private companies to provide driver's education classes, and you can use one of these companies. Electing to have a driver's permit for a longer period of time may also reduce the cost of your insurance. If you get pulled over on the road, you should always consider options for driver education over paying the ticket and taking points.
Good Student Discounts
Most insurance companies offer some type of good student discount. Good students have a historically lower percentage of claims and insurance costs. Submitting your report cards to your insurance company may result in savings up to a few hundred dollars a year. Your insurance costs will typically drop dramatically once you turn 25, but proving you are responsible at a younger age than that can reduce costs. Good grades are typically a sign of responsibility, not just intelligence.