Drivers younger than 25 years old don’t have it so easy when it comes to car insurance rates, and teens are hit especially hard. Basically, young drivers just don’t have the same experience on the road as adults.
According to my car insurance company, teen drivers are more likely to get into car accidents, rack up traffic tickets, and even skip wearing our seatbelts. So, car insurance companies see them as higher risks.
When I first began driving 15 years ago, it seemed unfair that I would have to pay higher premiums, but my agent showed me statistics they use to create car insurance rates for teens. They showed that young people really do drive less safely in general. While this isn’t true for every young driver, the ones who do practice risky driving increase auto insurance rates for the others.
When I heard this, I almost resigned myself to paying sky-high premiums. However, with the help of my auto insurance agent, I found some ways to get cheaper rates, and one of the best ways was by studying and getting good grades!
Ask About Student Discounts
There are plenty of ways teens can save money on car insurance, but one of the most valuable—in my opinion—is getting good grades and qualifying for a good student discount.
Good student discounts reward teen drivers for keeping a certain grade point average. For example, my car insurance company gave me a serious rate cut for keeping at least a B-average—we’re talking 10% off what I would’ve paid without keeping my grades in check.
Also, I found out I could keep my student discount for a few years after I graduated high school by continuing to get good grades in college.
Be sure to ask your insurance provider about student discounts and then hit the books!
Driver’s Education Lowered My Premiums Even More!
Speaking of school, when I began driving I enrolled in and completed driver’s education at my high school. This worked out really well for me because my auto coverage provider offered an additional discount for completing it!
So, once I got my driver’s license I became eligible for both a good student discount and one for finishing Driver’s Ed.
Not all schools offer driver’s education, and some states don’t even require it. Still, I highly recommend finding a course near you—even if it’s an online defensive driving course.
Considering many car insurance companies offer additional discounts for completing Driver’s Ed—and you get valuable training regarding your state’s rules of the road and behind-the-wheel instruction—what’s to lose?
Just make sure your car insurance company approves the driver’s education or defensive driving course you choose; if it doesn’t, see if you can get a list of accepted schools.