Under 25 Car Insurance
It’s a common practice for auto insurance companies to charge much higher premiums for drivers who are under 25 years old. There’s a valid reason that drivers under 25 pay the most for car insurance: Accident rates are much higher – especially for teenagers. Young, single males are the most likely to be in crashes.
Why do young drivers have such a problem staying out of trouble on the road? Accident data shows the following are the top causes that young drivers, and especially teens, have accidents:
It’s obvious that the early years are simply a challenge for young drivers due to inexperience and immaturity. There are many things we can do to help our Under 25 drivers earn a good driving record and cheaper insurance rates.
First, parents should be very involved in training and coaching their young drivers. They need this assistance to gain discipline, confidence and experience. There are also online tools to help with the training process. For example, Nationwide Insurance has a learning program called SmartRide (nationwidesmartride.com) to help with teen training. There are other resources widely available to help parents properly train their teens. The key is to be serious, active and supportive about the training and coaching for the best results.
There are also insurance savings available for drivers under 25 to help offset the much higher rates. Staying on the parents’ policy as long as possible, choosing a bigger and more modest car to drive – no sports or luxury cars, car safety features, good student discounts, defensive driving courses, and maintaining a good driving record are all strategies to keep insurance costs lower. Actually, getting married can reduce insurance rates – but may not be the best strategy if used strictly to save a little money on insurance!
After turning 25, the driver should first contact the insurance company to request a rate review. Hopefully this will result in a lower risk class rating and lower insurance rates – up to 20% savings in many cases. It’s important for drivers under 25 to maintain a clean driving and claims record to expect cheaper rates.