Reader’s Question:

What are the factors affecting average car insurance rates among young drivers?

Joseph

Salt Lake City UT

A lot of young people often wonder about their average car insurance rates. Statistically, it has continuously increased in the recent years. In fact, based on a study conducted, the average car insurance rates as of May 2009 is $1,837 which is slightly higher compare to that of last May 2007 which is only about $1,600. It may still continue to rise but it will certainly vary depending on some important factors.

The national average car insurance rates for young drivers are easy to determine. On average, drivers below 25 years old may expect to pay more than twice the base rate of their insurance. This means that if a parent pay $500 for a year of coverage, then his or her teenager may expect to pay more than $1000 for their cost of insurance. Here are a few factors that can go into determining average car insurance rates for young motorists.

Age

Drivers who are at their teens usually have one of the highest car insurance premiums. This is due to the fact that these individuals are considered inexperienced drivers. Other than that, they also tend to be aggressive behind the wheel, putting them at higher risks for accidents.

Gender

Another factor is gender. There is no denying that men tend to be more aggressive than women, when they are driving on the road especially when they are around 25 years old and below. This is the reason why they have higher cost of insurance compared to women.

Location

Where you live is also a factor. Different states have different rules when it comes to auto insurance premiums. The price of your car insurance will depend on the area you live in and the limits that were set by insurance regulators otherwise known as your local Department of Insurance.

Reader’s Question:

Is a young drivers car insurance always expensive? How can I get a more affordable policy here in Washington?

Marty

Seattle WA

Young people, particularly male ones, are often given expensive insurances. This is because a young driver car insurance exposes the provider to a higher financial risk. Why is this so? Based on statistics, young drivers are often involved in fatal accidents because of their tendency to drive very fast and stay on the road often. Even if you are more responsible and unlike those who use their cars for more dangerous entertainment, you get stereotyped with the rest of them.

Don’t worry though, there are some ways for you to rise above the categorization in Washington. The first you need to remember is to build your reputation as a good and responsible driver. You can do this by enrolling in a defensive driving course, which will tell insurers you are taking driving seriously. Within the next two or three years, make sure you won’t violate any traffic rules, like running or beating the red light. If you manage to keep your driving record stellar, you’re very likely going to get a good discount when you renew your young driver car insurance policy. Moreover, try to get a good grade in school. Keep your average at B because students with this average get up to 20% of discount. If you have this grade now, try asking the insurer if they could give you a discount for that.

In the meantime, the best you can do is to get a car that is rated well by insurance companies in Washington. These cars are usually have smaller engines, like the Nissan or the Honda cars. If you want a pick-up kind of vehicle, you’ll be charged higher in your young driver car insurance because they have bigger engines. Bigger engines mean they can go faster on the road. Ask insurers for the cars they’re rating well. After that, ask your mom or dad where they are buying their car insurances and even the mortgage insurance. Usually, providers will provide you with a discount if your family’s insurances are all bought from one company. Make sure though that your parents have good words about the provider because you don’t want to get stuck with a company whose customer service is crappy.

Reader’s Question:

Im buying my own car insurance and I am trying to get affordable car insurance quotes. So far the quotes I am getting are all very expensive. How can I lower it?  I am a teenager living in Chicago and insurance companies don’t seem to really want to insure me

Michael

Chicago IL

Age and driving record is one of the greatest factor that car insurance companies looked at when determining your car insurance quote. That is why teen are rated with expensive car insurance rates. Also, teenagers are susceptible to possible distraction, making them less responsible for the possible consequences of unmindful driving. There are several ways though to still get a further discount, getting the best deal of premium coverage from different insurers.

• Teenagers should keep a clean record since the time they’ve formally started driving.
• Compare discount schemes several insurers could offer to get the best savings. You’d be amazed to see significant differences on what each insurance company could provide.. Also consider long term benefits such as discounts for loyal customers or good drivers.
• The parent should also consider how much deductibles they could afford and how much would it save them on premiums given that amount.
• Take defensive driving classes. This can help you lower your car insurance rates.
• It is cheaper if you stay on your parents policy rather than buying your own car insurance.
• Good driver discount is one of the best way to lower your premium. Not only it will make you a better driver, but a better car insurance rates as well.
• Choose a cheap small cars. It is cheaper to insure.
• Shop online and compare the quotes you are getting. This will help you get the best deal.

Reader’s Question:

Im only 17 and I practically pay for my own car insurance. I cant afford it. Its too expensive! Is there any way I can lower it down?

Frances

Seattle WA

A high insurance rate is very heavy on the budget, particularly for someone who is still young and does not have a high-paying work. People below 25 are normally getting expensive insurances, which are higher that people older than them. This happens since many people of this age group have been involved in major accidents, resulting to insurers paying a lot of money for bodily injuries and car repairs. Obviously, insurance companies do not like paying often. They would want to lessen their risks. But since teenagers have shown time and again that they would always be speeding on the road or being on the road far more than the ideal, insurers have no choice but to raise rates among teenagers.

Despite this outlook, there are still ways for a young driver to get an affordable insurance. If you are new, you will need to keep your record good for the next few years to establish your responsibility as a driver. While in the process, what you can do is to enroll in a defensive driving subject that will enhance your driving skills. This course is favored by insurers because the driver becomes more adept when handling a car on the road.

After passing the subject, inform your insurer so that it can take that information into account the next your policy is due for renewal. As a student, getting a good grade is a way for you to land a good job in the future. There’s so much more this! You can actually get an insurance discount if your average happens to be a B or higher. If not, work on it a little to get that grade and enjoy the discount. You may need to work it out a bit and slow down on going out during school days.

Reader’s Question:

Hi! My son is about to acquire a drivers license, how can I get the best deal for the cheapest price for my teens car insurance? I know getting car insurance for young drivers can be expensive nowadays. Thanks

Harry

Pittsburg, NH

Yes it is true that car insurance for young drivers can get expensive. The main reason why insurance premium is high for them is because teen driving risks are very high compared to drivers whose age are 25 and above.

But in the car insurance industry, car insurance for young drivers can still get pretty low if you know what to do. Here are a few reminders to get that best deal and a few premium reducing tips to lessen the financial pain.

Always include your teen on your current policy. It’ll be much cheaper than having them own one for themselves. Plus, you can be eligible for a multi-policy discount.

You can save more by jacking up your deductibles. A deductible of $300 to $1000 can reduce your insurance premiums up to 25%. It’s also smarter to use your insurance for major accidents rather than covering minor car damage that you can pay for yourself.

The most important when it comes to car insurance is to shop around especially car insurance for young drivers. This is the only way to determine if you are getting the cheapest rate. Lots of car insurance websites offers free insurance quotes and acquiring 3-5 quotes from different insurance provider can increase the chance of finding the cheapest one.

Reader’s Question:

I am 23 years old and I would like to know if ever there has been a survey about cheap car insurance young drivers?

Megan

Cleveland, OH

Megan, I really have no knowledge of any survey conducted regarding cheap car insurance young drivers. But based on the thousands of young people writing on the Net, there are certain preferences of young people like you that I have noted.

Of the thousand questions I have read, I have concluded that most young people look for a car insurance with discounts. I have come across many questions that inquire whether there are car insurance companies that offer 30 percent discounts if no claims were made for a year. A feature like this would encourage first time drivers or young students to be more cautious on the road even after a night of partying.

Here’s another interesting trivia. Many young drivers ask whether there are car insurance companies that may send drivers when they cannot avoid going to a party. They wonder whether is an available service. That way they won’t be forced to drive back home drunk because somebody will drive them home. Can you imagine the heaving of my belly when I first read this. Later on, I realized these guys are dead serious. After some thought, I guess it’s not such a bad idea. I think this is a possible solution to curbing DUI arrests and fatal accidents. Maybe car insurance companies can have a hotline or something. Or perhaps they can include this in their service package.