You’re a 21 year old driver. You’ve officially been on the road for five years now, but your car insurance rates are still through the roof. Is this fair? You’ll find out why under 25 car insurance rates are expensive, as well as what you can do to manage the costs.
What to Expect if You’re a Driver Under the Age of 25
The one thing you can expect as a 21 year old driver is very high car insurance rates. You might know all about the studies done that say young drivers are almost four times as likely to get into crashes as older motorists. This may apply to drivers who are new to the road, you say. What does this have to do with me? Unfortunately it has everything to do with you, 21 year old driver. Insurance companies pay a lot of attention to studies done by organizations such as the Insurance Institute for Highway Safety. The bad news for you is that you’re paying higher premiums until you’re 25.
The Studies
Many studies have been done on the crash risk of young drivers and they all say the same thing: drivers under the age of 25 are way more likely to get into an accident than their older counterparts. The good news is that you can the higher premiums by being a safe driver. Since you’re 21, you’ve been on the road for a few years. If you can demonstrate an excellent driving record, your premiums won’t be quite as high as your roommate, who’s been in 3 accidents this past year. If you maintain a safe driving record for the next four years, your car insurance company won’t have an excuse to keep your premium at a higher rate.
What This Means for Drivers Under the Age of 25
Even though you’re in for higher premiums for the next four years, you shouldn’t fret. A little research can reveal if you’re paying too much for car insurance. By typing in “under 25 car insurance” into Google, Yahoo!, Bing or any other search engine can bring you many insurance companies that are willing to give you affordable coverage. Even though you may not see the wisdom in comparing car insurance rates yet, now is the time for heeding your parent’s advice. Besides, you’ll never know if you could be experiencing substantial savings if you don’t look.
Looking for Discounts
Look, just because you’re 21 doesn’t mean that you’re too young to go discount fishing. As a 21 year old, you can take advantage of many types of discounts. For example, if you’re a college student who has at least a solid B average, many insurance companies will lower your premium by 10% or more. Don’t be afraid to ask your insurance company about any discounts for which you may be eligible. Other types of car insurance discounts you may be eligible for include military and good driver rates.
Just because you’re 21 doesn’t mean you’re eternally locked in on higher insurance rates. Affordable under 25 car insurance is out there, you’ll just have to find the time to research this between classes, your part time job and doing shots on the weekend at your local bar. Don’t worry, it’s all possible. Doing less shots help. A lot.