Zaneta Wood, Ed.S. has over 15 years of experience in research and technical writing bringing a keen understanding of data analysis and information synthesis to reach a wide variety of audiences. She studied adult education and instructional technology at Appalachian State University as well as technical and professional communication at East Carolina University. Zaneta has prepared technical p...

Full Bio →

Written by

Joel Ohman is the CEO of a private equity backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Jo...

Full Bio →

Reviewed by Joel Ohman
Founder & CFP®

UPDATED: Aug 14, 2020

Advertiser Disclosure

It’s all about you. We want to help you make the right coverage choices.

Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.

Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.

Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.

Here's what you need to know...

  • If your teenager is going to drive, then he or she has to have insurance
  • Car insurance for young drivers is very expensive because of the heightened risk involved with an inexperienced driver
  • It is not easy to find cheap car insurance for young drivers, but you can shop around to see who offers the best rate
  • Usually you can find the best deal with your current car insurance company if you have a good history with them

A driver’s license is a turning point in every teenager’s life, but it does not come without a cost. Usually in the form of more expensive car insurance rates for young drivers. But, there are some ways to find cheap young driver insurance rates.

Unfortunately, sometimes finding the cheapest car insurance does not always mean finding the best car insurance, so you need to be sure you have affordable car insurance with a reputable company, otherwise your premiums could end up being wasted dollars.

Use independent rating tools to check the stability of insurance companies.

Get cheap car insurance quotes for young drivers by entering your zip code above now!

Table of Contents

The Kind of Car Insurance that Young Drivers Need

If you remember when you first started driving, there may have been a lot of learning curves. No matter how much education you get in a classroom or a driver’s education course, there is no better teacher than experience.

Unfortunately, that usually means that mistakes are part of the education. Sometimes those mistakes can be quite costly.

No matter what type of car your teenager is going to drive, he needs to carry liability insurance for it. Since young drivers are more prone to be responsible for accidents, it is a good idea to purchase more liability insurance than the state requires as a minimum.

This is more expensive in premiums, but it will pay for itself if there ever is an accident for which your young driver was at fault.

The type of car your young driver is going to be using may or may not warrant comprehensive or collision insurance. If the car is a beater car with little value then you may be able to save the expense of comprehensive and collision insurance.

However, if the car becomes damaged or totaled there will be no insurance payout so the cost of repairs or replacement will have to be out of pocket.

If the car is a newer car or a car that still has Blue Book value, then it may be a good idea to add the additional coverage to the insurance policy.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Pitfalls of Cheap Car Insurance for Young Drivers

Since car insurance for young drivers is so expensive, it is tempting to buy the cheapest car insurance you find. However, there could be pitfalls with that method, so be very careful when choosing a car insurance provider.

If car insurance is cheap but the policy is severely lacking or flawed then you may end up without the coverage you expected.

Also, if you choose a car insurance company that is not reputable or has a sketchy financial rating then you may end up not being able to collect on a payout.

Another risk factor is choosing a little-known car insurance company that is not legitimate. It could be a fraudulent company taking your premiums and then disappearing when it’s time to pay a claim.

Review every car insurance policy very carefully. Wording can be everything in an insurance policy and if you have a claim with an insurance company that is questionable at best, you may find yourself fighting for your benefits in a court of law.

Depending on how the policy is written, the judgment may be in favor of the insurance company and you will be out-of-pocket for the car damage costs and your court costs as well.

Shopping for Cheap Car Insurance for Young Drivers

To find cheap car insurance for young drivers, secure several quotes for comparable coverage to see who can offer you the most affordable rate. Keep in mind that rates will differ by gender. Finding cheap car insurance for young female drivers will be different than finding cheap car insurance for young male drivers.

Take all factors into consideration, including discounts and credits that the insurance company will give you.

Make sure you are comparing the same deductibles for the same coverage amounts as well. This will help you get a fair picture of who can truly offer you the cheapest car insurance rates.

Narrow down your choices to two or three selections.

At this point your next step should then be to review the car insurance company’s history to see the following:

  • How long they have been in the insurance industry
  • What their average financial strength rating is
  • How their customer service is reviewed
  • How many payouts they have on the average
  • What their claims to payout ratio is
  • How fast their claims handling process takes

Get online car insurance quotes from different providers by entering your zip code in the box below!

Comparing Cheap Car Insurance Quotes Online For Young Drivers

  • Young drivers will see higher insurance premiums than their parents or older siblings
  • There are many ways young drivers can receive discounts, such as receiving good grades or taking defensive driving courses
  • Young drivers should drive older cars that still have reliable safety features

It is not easy to obtain cheap car insurance for young drivers. However, there are some actions drivers under 25 can take to get the best rates possible.

Young drivers have the benefit of starting with a clean slate since they do not have bad driving records and have not accumulated any points on their licenses.

However, teens and young adult drivers are considered by insurance companies to be high-risk due to their limited experience on the road, which is the reason for the increased insurance rates.

Young drivers are quoted the highest insurance rates of drivers in any age group. The best way to find reduced rates is to shop and compare. There are other ways that you can get cheaper rates as a young driver. Check out the article below to discover your options.

Start by entering your zip code and comparing the free car insurance quotes from top companies now!

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Make Honor Roll in School

One great way young drivers can reduce their premiums is to do their best in school. Many insurance companies give discounts to students that have exceptional academic performance.

Statistically, teens and young adults with better grades make better overall choices. Because of this, insurance companies offer incentives to these drivers as they are believed to be less of a risk behind the wheel.

Choose a Safer Older Model Car

One of the main factors used to determine insurance premiums is the year, make, and model of the vehicle. Newer cars are more expensive to insure, and older cars with a myriad of safety features cost less to insure.

It is not a good idea to purchase a brand new, high-end car as a young driver. This is a surefire way to raise your insurance rates.

A vehicle that is a few years old with some built-in safety features will be your best bet.

This will drastically reduce the amount of money spent on insurance and will also provide a safer driving experience. Additionally, you will have peace of mind knowing that you are in a safe and reliable car.

Safety is extremely important with teenagers since they have the highest fatality rates among drivers.

Vehicles that operate at high speeds and that have a ton of “fun” features can distract young drivers, but insurance companies reward those who make choices based on safety when it comes to purchasing a car.

Sign Up for Driver’s Ed Courses

Another way to save money is by signing up for driver’s education courses.

Most students have the opportunity to take these classes at school. However, there are additional courses that can be taken that can help equip the young driver with the proper knowledge needed to operate a vehicle safely.

Driver’s education courses teach drivers the laws for their particular state as well as the importance of driving safety.

Taking these courses prior to obtaining vehicle insurance will help to decrease rates. In fact, substantial discounts are given to teens that complete these courses.

While some states require teen drivers to take driving courses in school, many states do not.

If you do not have any courses in your particular town, you can sign up online.

In addition to driver’s education courses, here are some other ways that you can get cheap car insurance as a young driver:

  • Add yourself to your parents’ car insurance policy
  • Work with insurance agents that cater to new and young drivers
  • Ask about specific discounts you may qualify for
  • Compare rates between companies at least once a year

Online insurance rate comparisons are the best way to shop for cheap insurance for young drivers. You can get rates from a variety of companies right from home without calling around to different agents or insurance providers.

With online insurance quote comparisons, you have the ability to research a number of companies. You can then make your final decision based on which one provides the best rates for young drivers.

To start your search for cheap car insurance, enter your zip code into the FREE tool below!

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Obtaining Affordable Insurance for Young Drivers

  • Insuring teen drivers is going to cost more than older, experienced drivers
  • There are ways to keep the premiums for a teen’s insurance lower, including buying an economical car that doesn’t need full coverage
  • Teens can get discounts on insurance. One of these discounts is for having good grades in high school or college

Parents are well aware that adding their teen drivers to their car insurance policies will significantly raise their rates.

Parents with teenagers who are about to receive their licenses may be asking if it’s possible for them to get affordable car insurance for young drivers.

Affordable car insurance for teens absolutely can be found, and it happens with a little planning.

Let us help you find affordable car insurance for young drivers. Enter your ZIP code above in our comparison tool for FREE car insurance quotes.

Is it better to add a teen to the parent’s policy or purchase a separate policy?

One way to obtain the most affordable car insurance for young drivers is to add them to their parents’ policies. Adding them to an existing policy will result in higher premiums, but a policy only in the name of the young driver would be much more costly.

Drivers who are in their first three years of having their licenses are in a high-risk category. These drivers cause several auto accidents due to their inexperience.

Car insurance companies will charge a very high premium if the new young driver is applying for car insurance on his or her own. The problem will be even worse if the young driver is male.

Obtain Quotes from Other Car Insurance Companies

If the parents are quoted a price that is too high after they ask to add their teenagers to their policies, they still have the possibility of receiving affordable car insurance.

If they compare quotes from other car insurance companies, they may find that another company has lower car insurance rates for them.

Lower car insurance quotes offer these parents an opportunity. Armed with several lower quotes, parents can take the quotes to their current car insurance companies and suggest that they are considering taking their business to another company.

This threat can encourage their current car insurance companies to lower their rates to the other company’s quote. There are many other ways to lower your car insurance costs.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Reducing Rates While Away at School

When teenagers go away to college, this presents their parents with another chance to obtain more affordable car insurance for young drivers.

If these teens can be convinced to leave their vehicles in their parents’ garages while they are away at school, their rates can decrease as a result.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Being a Low-Mileage Driver Makes Car Insurance Affordable

If teenagers are going away to college and they are taking their vehicles with them, they can still qualify for some of the lower car insurance rates.

Those who are moving to a new state will need to purchase car insurance in that state.

Obtaining lower quotes means stressing the fact that they are low-mileage drivers. College students who are living on campus or close to it can qualify for the low-mileage discount.

Earn Good Grades for a Good Student Discount

While teens are in school (high school or college), parents can coach them to work as hard as they can to earn the best grades.

Car insurance companies will offer a lower quote or a reduction in rates when parents present proof that their teenagers were high achievers in their schools.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Say “I Do” for a Marriage Discount

A good way for young drivers to obtain affordable car insurance is to get married. Some car insurance companies will reduce their rates as much as 40 percent.

For a young male driver who is typically charged higher rates than most, the simple fact of becoming someone’s husband can pay off very well for them in their car insurance rates.

Purchase an Economical Vehicle

Affordable car insurance quotes are due young drivers if they drive the most economical cars. Parents then have the opportunity to purchase a used car for their teens that is safe as well as inexpensive.

Furthermore, used cars often do not need to be covered by collision and comprehensive insurance coverage.

Purchasing the Most Affordable-to-Insure New Car

People must not think that they cannot purchase a new vehicle for their teens if they want to keep their premiums low.

They can buy a new car for their teens and qualify for low premiums if it isn’t a sports car, it has several safety features that help prevent accidents, and it has several airbags and automatic seat belts.

Free Car Insurance Comparison

Enter your ZIP code below to view companies that have cheap car insurance rates.

 Secured with SHA-256 Encryption

Lowering Rates on Collision and Comprehensive Coverage

They may need to add collision and comprehensive coverage that will increase the rates, but this doesn’t mean that they will have the highest rates. Teenagers can qualify for the same discounts that adults can if:

  • Their parents are insuring more than one vehicle with the same car insurance company.
  • They purchase a homeowner’s policy and/or a life insurance policy with car insurance.
  • They park the car in a garage rather than the driveway or the street.
  • They drive the car in a safe area.

Compare Quotes for Affordable Car Insurance for Young Drivers

Comparing quotes is going to be the best tactic that parents and teens can use to find affordable car insurance for young drivers.

It’s easy for this demographic to find the company that will charge high rates, but it takes an effort to be placed in contact with car insurance companies that will charge low rates.

Enter your ZIP code below for FREE car insurance quotes!

When should I shop for car insurance for young drivers?

Car insurance rates for young drivers are 688% higher than rates for adults. Comparison shopping can save you up to 20%.

  • Insurance companies base insurance premiums on age groups and the risks associated with those particular age groups
  • Typically, young adults have the highest rates of accidents and are the most unsafe drivers on the road
  • Even if your teenager is a safe driver, they will be viewed as a high-risk and will have to pay expensive insurance rates

If you have a teenager who is getting ready to get your drivers license, you should probably start looking for car insurance quotes for a young driver right away.

There are many factors that can determine your premium rates, but typically young driver insurance is expensive.

Young drivers are considered the riskiest drivers for an insurance provider to cover, so they also charge a premium price to provide insurance for those drivers.

Check out the FREE comparison tool above by entering your ZIP code now!

Getting the Best Car Insurance Rates Possible

There are several things you can do to make sure you get the best rate possible if you have a young driver in your household.

Comparison shopping is one of the ways to see if your current policy is giving you the best deal possible.

Start by talking to your insurance agent or current insurance provider and getting a quote that includes coverage for your teenager.

Using this as a baseline for comparison, you can go on numerous insurance comparison websites and get quotes from multiple insurance carriers.

Additionally, you can also go directly to insurance company websites and get quotes directly from the insurance company.

It may also be helpful to talk to a company representative directly for additional suggestions about discounts or other ways to bring the premium quote down.

Take Advantage of Discounts on Car Insurance

Many insurance companies offer numerous discounts to help bring down your policy rates, even if you have a teenage driver on your policy.

For example, if your child gets good grades, you may qualify for a significant discount. Keep copies of grade reports and submit them regularly to the insurance company to make sure you receive your discount.

Additionally, your child may qualify for a discount if they attended and completed a driver’s education course, either through school or through a private drivers education provider.

Make sure to get a certificate of completion and submit it to your insurance provider.

Limit Driving

Another method of keeping rates down for your young driver is to limit their driving.

You may be able to have an exclusion written for coverage for your most expensive cars, meaning that you do not allow your child to drive the luxury car or the SUV, but you do allow them to drive the older family sedan.

With an exclusion, coverage is not provided if there is an accident involving your teenager as a driver.

In some cases, an insurance company will also lower rates if your child goes away to college and does not take a car with them.

They may consider that your child will only be driving periodically when they come to visit or they may simply drop coverage requirements for a child if they are not living at home.

Finding Car Insurance for Young Drivers

Most insurance providers do not require you to get auto insurance for your teenager while they have their driving permit.

However, as soon as your child begins to drive, contact your insurance agent or insurance provider to find out what they will require for coverage.

Talk to them about ways to save money and how to keep your auto insurance premiums as low as possible.

By comparison shopping for rates, taking advantage of discounts and some strategic planning, you can keep your rates down and still give your teenager a bit of freedom that comes from being able to drive.

Looking for young drivers’ car insurance? Enter your ZIP code below!

Car Insurance for Young People

  • Car insurance rates for young people can be extremely high
  • Car insurance rates can be reduced by comparing several different companies
  • Car insurance for young people are based on their categorization as high-risk drivers

For young people, car insurance can be incredibly expensive. All too often, young drivers and their parents may feel they are being taken advantage of when it comes to purchasing insurance.

Young people may not have the experience that shows they are capable of safe driving, and they may make a mistake every now and then while driving.

Even though these facts remain true, the other truth is that young people typically pay way too much for car insurance because they neglect to compare rates and look for discounts.

Compare online car insurance quotes for young people by entering your zip code into the free tool above!

Purchasing Car Insurance In College or Graduate School

Sometimes young people may move away to college or graduate school. Maybe they are purchasing insurance for the first time and never had a car in high school or college.

Sadly enough, these students can easily be taken advantage of during the process of buying insurance.

You can get cheap car insurance for young drivers, but you have to know where to find it.

When finding insurance rates, there are a variety of ways people can go about it.

Young people can take one of three routes in finding great car insurance rates that are also affordable:

  • Doing an online comparison of rates
  • Calling insurance agencies
  • Physically going to insurance offices

Calling every insurance agency out there can take hours and hours, as you wait on hold to speak with an agent, and going to insurance offices can take up your time and cost you money in gas.

The best route for finding great car insurance rates is doing an online car insurance comparison of rates.

Find Car Insurance for Young People Online

In just a few seconds, you can be exposed to hundreds of insurance rates, and you can fill out applications for quotes right on the spot.

It is also important for young people to compare rates online because insurance agencies greatly vary in how they treat young people.

Teen drivers simply pay higher rates. 

One agency may have a tradition of being much more lenient in rates than another newer agency.

A young person can save a hundred dollars or more when comparing insurance agencies simply because certain agencies prefer working with young people.

Parents and Car Insurance Rates for Young People

Car insurance for young people typically costs a lot for the parents who help pay for a policy.

However, parents can gain some control over the situation simply by comparing rates online.

Insurance agents may take advantage of the excitement that comes along with driving for the first time with young people.

Insurance agents know that young adults are in a rush to drive, so they will charge high rates.

Comparing rates online is the smartest option for young people to get the best quotes possible.

Type your zip code into the free rates box and compare car insurance quotes for young people now!

References:

  1. https://driversed.com/
  2. http://www.investopedia.com/terms/l/liability_insurance.asp
  3. http://www.kbb.com/
  4. http://www.edmunds.com/auto-insurance/how-to-choose-the-right-insurance-company.html
  5. http://abcnews.go.com/blogs/business/2013/07/car-insurance-hidden-discounts-revealed/