How to Save Money on Car Insurance for under 25 Drivers

| October 2, 2012
Day 209 - West Midlands Police - Uninsured veh...

(Photo credit: West Midlands Police)

If you are under 25 years of age and are looking for car insurance, you have likely run into some fairly expensive policies and been upset that there are not cheaper options available to you. Luckily, there are some simple steps that you can take to reduce the price of your policy, even if you have existing tickets on your record. Almost every car insurance company offers some simple steps that you can take to reduce your policy price, and there are also a variety of strategies that you can employ when shopping for car insurance that can help you to secure a better deal than you normally would be able to.

Shop Around and Compare Quotes

Start by shopping around and comparing quotes at a variety of different organizations. You will be surprised by how much two similar policies can differ in cost. Also make sure that you are properly researching any of the companies that you are considering going with prior to making a commitment so that you can be sure you are work with a reputable organization.

Good Grades

For kids in high school, and at some companies, in college, good grades can do a lot to decrease the price of your car insurance. Although getting good grades and being a safe driver generally have nothing to do with one another, insurance companies have found that individuals that get good grades are more apt to take their future into consideration when they are making decisions in the present, which translates into better, safer driving all around. You will be required to scan and email your report card or transcript to your car insurance company as proof in most circumstances.

Safer Cars Make For Cheaper Insurance

Expensive or unsafe cars are always going to be more costly for companies to insure. As a result, getting a cheap or safe vehicle can seriously help you to save a lot of money on your policy. You can check with insurance companies prior to purchasing a vehicle to figure out what options are going to be the best for you, and save you the most money with a particular company. Generally, older vehicles and vehicles with better safety ratings help to lower rates, along with vehicles that have a lower overall value.

Credit Score

Car insurance companies also take your credit score into account when they are evaluating the cost of insuring you. In the same way that good grades help to define your character, a good credit score speaks volumes about an individual and often those that have good credit scores have been found to be safer drivers.

Defensive Driving Courses

Many insurance companies will allow you to take a defensive driving course in order to secure a lower rate on your policy. In taking the course, you are taking initiative to make yourself a better driver and as a result are going to be learning skills that in the end could make it less costly to insure you. Not all companies will offer lower rates for taking a defensive driving course, so it is important that you ask your policy provider prior to signing up.


If you don’t drive all that often, be sure to let your insurance company know! Often times there are statements in the fine print of policies that if you drive less than a certain number of miles per year (often around the 10,000 mark), you are eligible for a deduction in your policy price.

There are many ways in which you can lower the cost of your insurance policy if you are under 25 years of age. For those that fall within that age range – your rates are so high because generally young people are more prone to driving mistakes and therefore are more expensive to insure. By displaying to the company that you are going to present less risk than your average young person, you may become eligible for lower rates.

Author Bio: Anna Peterson is an associate that works for

Tags: , , , , ,

Category: Insurance

About the Author ()