Because young drivers have the highest number of accidents, and therefore the most claims activity, it is usually difficult to find cheap car insurance for young people.  In fact, drivers younger than 25 typically pay the most expensive car insurance rates in the country, sometimes even as much as $300-$400 per month!  This unfortunate reality adds to the already burdensome expense young drivers face in owning a car.

The statistics in this area are very enlightening.  It is reported that nearly 40% of insurance claims are made by drivers who are age 18 and younger.  Nearly 20% of drivers have an accident in the very first year they are driving.  More than 40 % of accidents involve drivers under the age of 25.  And about 40% of the deaths caused by car accidents involve drivers who are younger than 25.

These are the statistics that car insurance companies deal with when they set a price for car insurance for young people.  Let's face it - young drivers are simply a greater risk to insurance companies than their older counterparts.  And this is why car insurance for young drivers is so expensive.  But despite having been assigned to the higher risk pool by insurance companies, there are some things young people can do to cut their car insurance costs.

One way to keep insurance premium costs low, or at least lower, is to be aware of the discount offers that many insurance companies offer young people from time to time.  One offer that is regularly aimed at young drivers is a discount - usually around 10% - for completing a defensive driving program.  These courses are offered regularly at local high schools, libraries and community centers, and usually only for a nominal fee.  Sometimes they are even free.  This is an easy way to save on the cost of young driver car insurance.

Another discount program that some insurance companies are offering may not be practical for all young drivers.  It will depend on how much driving needs to be done going back and forth to work and to school.  This program involves a discount for younger drivers who agree to limit their driving to a predetermined number of miles each year.  If you know ahead of time that you will not need to do an excessive amount of driving, this discount plan may be suitable for you.

Student Car Insurance

Many car insurance companies actually offer discounts to students with good grades! And these savings can be quite substantial. If you are maintaining at least a B average, you may be able to qualify for student car insurance at discounts of up to 30%. This is because statistics show that young people who do well in school also tend to be safer drivers who represent less risk to the insurance company.

Parents can help their children save on the expense of car insurance for young people, especially while their children are still in school, by adding their son of daughter to their own insurance policy. This is generally a less expensive alternative than purchasing separate young driver insurance coverage, and in many cases it is a workable option for both the parent and child.

Another cost saving technique is to ask for the highest deductibles that you can afford.  The higher the deductible (the amount you are responsible to pay in the case of an accident), the lower your premium costs will be, since the insurance company will now have to pay less in the event of a claim.  It is worth mentioning again, though, that you should only go for the highest deductible that you think you can afford.

When it comes to rate you will pay for car insurance for young drivers, the size and even the color of your car can make a difference.  Now it's no surprise that most young people love to drive sports cars.  Unfortunately, though, statistics show that these cars, especially flashy red ones, are much more likely to be involved in accidents than more conservative choices.  Since sports cars, especially the smaller ones, come with higher risk, they also come with higher car insurance costs.  It is almost impossible to find cheap car insurance for young drivers of sports cars, so if you want to save money on your car insurance, these kinds of cars are not the way to go.  Opt for a less sporty mid size car instead.

Traffic violations - speeding, running a light or stop sign, and especially a DUI - are especially detrimental to the insurance premium costs of young drivers, as are accidents themselves. It doesn't take much for the insurance companies to assign you to a higher risk pool and increase your rates substantially. If you are a young driver, it will be worth it to be careful to keep your record free of both accidents and violations.

Most insurance companies also offer discounts if your car is equipped with certain safety features. Air bags (which all cars come equipped with nowadays), alarms and other anti-theft devices, anti-lock breaks, and automatic seat belts are some of the features that might qualify you for a discount and reduce your premium accordingly.

Of course, some factors may just be beyond your control.  If you live in a city, for example, you are going to pay higher rates than if you live in a suburb or out in a rural area.  So unless you are willing to move, there isn't much you can do about this one.

There is such a thing as car insurance for young people and it doesn’t have to be as expensive as everyone just assumes it’s going to be.  The bottom line is that you need to shop around and take advantage of every discount  and rate reduction that you can find.  A little research now can save you a lot of money in the end.

A good insurance agent will be able to answer all of your questions and hopefully get you a policy with the lowest possible rate.  An independent agent may be especially helpful, since he will be have access to a number of companies and therefore you will have several options to choose from.  To give yourself the greatest number of choices you may want to shop online for your car insurance.  It may be a little bit more work on your part, but it might pay off in the form of a lower premium for your insurance.

One more thing: Don't overlook your mechanic as a source of invaluable information regarding car insurance for young people.  He deals with insurance companies all day long and can definitely point you in the right direction.  Friends, relatives and neighbors might also be able to help you.  Usually if they have found a good deal, they'll be happy to tell you about it as well.

Find out more about the options for purchasing car insurance for young people in this video on financial planning from licensed insurance agent James Burrows.

Inexpensive Car Insurance