Getting your driver’s license is a major milestone but for young drivers, the excitement of hitting the road often comes with a downside: expensive car insurance premiums. Insurers see younger drivers as high-risk due to limited experience and statistically higher accident rates, which leads to steeper costs. But here’s the good news: there are plenty of smart strategies you can use to save on car insurance as a young driver.
Why is Car Insurance So Expensive for Young Drivers?
Insurance companies calculate premiums based on risk. Since drivers under 25—especially teens—are more likely to be involved in accidents, insurers offset that risk by charging more.
Factors that influence high premiums include:
- Inexperience: Less time behind the wheel means higher likelihood of mistakes.
- Accident statistics: Young drivers are involved in more crashes per mile than any other age group.
- Vehicle type: Flashy or fast cars cost more to insure.
- Driving habits: Teen drivers are more prone to distracted driving, especially with smartphones.
1. Stay on a Parent’s Policy
One of the easiest ways to save is to join your parents’ car insurance policy instead of getting your own.
Benefits include:
- Lower rates thanks to bundled coverage
- Eligibility for multi-driver or multi-car discounts
- Parental driving history can influence overall policy cost
If you’re living at home or still considered a dependent, this is often the most cost-effective route.
2. Choose the Right Car
Car choice has a big impact on insurance premiums. Young drivers should aim for safe, reliable, and moderately priced vehicles.
Best cars for young drivers: Honda Civic, Toyota Corolla, Subaru Impreza, Mazda3, or Ford Focus.
3. Compare Insurance Quotes
Never accept the first quote you get. Use comparison websites or contact multiple insurers directly.
Tips for effective comparisons:
- Compare identical coverage limits and deductibles
- Ask about discounts for young drivers
- Don’t just shop for the lowest rate—check the company’s reputation and claim process too
Popular comparison tools: The Zebra, Policygenius, Insurify, and NerdWallet.
4. Take a Defensive Driving Course
Completing a defensive driving course can lead to a 5% to 15% discount on your car insurance premium.
These courses teach accident prevention techniques, help you build safe driving habits, and are often available online.
Check with your insurance provider to ensure the course is approved for discounts.
5. Maintain Good Grades
If you’re a student, your academic performance can actually lower your insurance costs.
The “Good Student Discount” typically applies to:
Some insurers extend this discount until age 25.
6. Consider Usage-Based Insurance (UBI)
Usage-based insurance programs track your driving behavior through a mobile app or a small device in your car. If you prove to be a safe driver, you could earn substantial discounts.