Why Car Insurance Under 25 Is Expensive
If you’re under 25 years old, here are the two major reasons why getting car insurance might be more costly for you than it is for older individuals:
- You most likely have no driving records or history.
- You fall under the demography which includes more reckless, accident-prone and judgment impaired drivers.
Statistics speaks for the latter of those two reasons. Since young people are typically new drivers, they most likely lack the heightened sense of awareness that more experienced drivers possess. Hence, young drivers are less attentive and more “rebellious” and complacent. That’s why almost all car insurance companies label the Under-25 age group as “high-risk”.
Factors You Can Consider To Lower The Cost Of Your Car Insurance
Contrary to popular belief, cheap car insurance under 25 isn’t hard to come by. It’s pretty rare but there are a few things you can consider in order to get more savings.
- Where you live. If you still live with your parents, you might want to look into “sharing” insurance policies with them. Most car insurance companies offer multiple-policy discounts for families and individuals who have insured more than one asset with them (i.e. home, cars).
- Car choice. Young people tend to choose fancier cars. This is another stereotypical statistic which leads car insurance companies to charge more for car insurance for young people. For your first car, instead of asking your dad to get you that sweet Porsche, why not settle for a simple car with a modest engine, then slowly upgrade to a better one when you can afford to. It’ll save you more money in repair costs in the long run as well.
- Good grades. Believe it or not, your grades in school count towards the cost of your car insurance. Having good grades is a sign that you are capable of making sane decisions and that you are a responsible person. So if you had good grades back in high school, don’t hesitate to flash them.
- Deductible. Remember the rule of thumb: the higher your deductible, the lower your premium costs. Try to keep them balanced though. You don’t want to risk a very high deductible for a small decrease in your premium payments.
- Safety car features. Having anti-lock brakes, airbags, anti-theft alarm systems and even GPS helps reduce the risk level of your car. Even your parking habits matter. The more you try to keep your car safe, the better your chances of bagging the best car insurance for under 25.