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Cheap Insurance For Young Drivers

Written by Todd Clay. Posted in Ask An Insurance Question Last Updated: 09/13/2010

How staying out of trouble, getting good grades, insuring a cheaper car, and staying on your parents policy will keep car insurance premiums lower

Young driver ready to take the keys.

Can this guy really get cheap insurance?

Cheap insurance for young drivers” may be one of the great oxymorons in the English language, right up there with “military intelligence” and “jumbo shrimp.”

There really is no such thing, especially for single males under 25.

However, there are a few things youthful drivers can do to contain the cost and at least prevent it from becoming “exorbitantly expensive insurance for young drivers.”

Stay Out of Trouble

The most obvious thing a young driver can do is keep a clean driving record. Even a single accident, ticket or claim can send the premium through the roof – especially if it occurs while he or she is already in a high-risk company.

Cheap insurance for young drivers may be a matter of opinion even under the best of conditions, but with a bad driving record it’s an outright fantasy.

Get Good Grades

Young drivers can also keep their insurance costs down by getting good grades in school. What’s more this is no big deal. It’s not like insurance companies expect high school-age drivers to get into MIT.

In many cases traditional-age college students (i.e. those under 23) qualify for the good student discount as well. Most companies require documentary proof of a 2.0 GPA or higher. A transcript or letter from a school official to the insurance company usually works.

Insure a Cheaper Car

Another thing to consider is the young driver’s vehicle. Auto insurance premiums are determined not only by the driver but by the car. Some makes and models are significantly cheaper to insure than others.

While a young driver can’t do much about his or her age, they can do quite a bit about what they drive. Choosing an older, paid-for car and going with a liability-only policy is a good way to move towards cheap insurance for younger drivers.

Make sure you check with your agent before buying anything though. Some companies will require the highest-risk family member go on the most expensive car. Agencies can vary on how they enforce that rule as well.

Parents Can Help Young Drivers Too

A final way to work towards cheap insurance for young drivers is for them to stay on their parent’s policy for as long as possible. This allows the young driver to take advantage of many of the same auto insurance discounts his or her parents enjoy. It’s unlikely a youthful driver would qualify for these discounts separate from parents.

Most insurance companies are perfectly happy to keep a young driver on the parent’s policy throughout high school and well into college. This is assuming the college student goes to school in a state where the insurance company does business. However, students are usually forced to go it alone by age 23. Consult with an insurance agent or broker to determine your best course of action.

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Todd Clay

Todd Clay is a former insurance agent with the largest insurance company in the United States. He earned his Bachelor’s from the University of Texas. He’s worked in several fields but has specialized in insurance, financial-related information, and technology. He blogs at Car Insurance Guidebook.

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