Car Insurance

Students Can Save Money On Car Insurance

Turning 16 is a big deal. It's one step closer to adulthood and the freedoms of the world of driving are opened up. Unfortunately, this is also the time when most parents and young drivers are sure to find out that car insurance can cost them - a lot.

Contrary to popular belief, car insurance companies don't charge teens and young adults a ton of money just for the sake of doing so. The rates might seem unfair, but they're in place because statistics support them. One out of three drivers under the age of 25 gets into an accident each year. This is why the rates for new drivers cost so much. The insurance companies simply don't have a choice but cover their bets.

But, there are ways for young drivers to save some money on their auto insurance policies. Not all companies will offer prices breaks, and some companies might even refuse to insure younger drivers, but there are discounts to be found for:

* Driver's education classes. Some insurance companies will provide a price break to young drivers who attend these courses and pass them with a B or better. These simply show the company the young driver has taken the time to learn good driving habits and cared enough to score well in the process.
* Students with good grades. There are sometimes discounts available for young drivers who maintain a certain grade point average in school. The reason for this is the fact that good students have demonstrated a certain level of responsibility. The insurance companies are taking a gamble that this demonstration extends to decisions behind the wheel, as well, but many are willing to offer a discount.
* Staying on your parents' policy. Even if a young driver has his or her own car, staying on the family's policy can result in some major savings. A separate policy generally will come at a much higher rate.
* Choosing a sensible car. A teen driver with a sports car is likely to pay out the nose for insurance, but a teen who chooses a four-cylinder sedan might realize some savings.

Depending on the insurance company chosen, other discounts for young drivers may be available. These can include such things as organization affiliations or multi-car discounts.

The number one way for a young driver to save money on insurance, however, is to make sure his or her driving record stays clean. This is very important as a ticket or even a minor fender bender can result in a major price increase. 

More Car Insurance Information