6 Tips for Finding Affordable Under 25 Car Insurance

Finding affordable car insurance for drivers under 25 may seem difficult but it's not impossible. You can find affordable under 25 car insurance by searching for coverage that will best fit your situation. One way to lower your risk of getting into an accident as a young driver is to get some experience. Take a defensive driving course to lower your under 25 auto insurance rates. Shop online now with our free tool below to find cheap car insurance quotes for under 25.

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Tonya Sisler has a Bachelor’s Degree from the University of South Carolina in Journalism and has worked for 15+ years in management. She has also completed a proofreading certification and is currently a professional writer.

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Brad Larson has been in the insurance industry for more than a dozen years. He started out as a claims adjuster for a national carrier. He has since switched to the agency side of the business. Brad is licensed in all P&C lines.

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Reviewed by Brad Larsen
Licensed Auto Insurance Agent

UPDATED: Oct 22, 2020

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One factor that can increase car insurance rates is age. Young drivers have some of the highest car insurance rates due to their higher risk for being in an accident. Drivers under 25 can find affordable insurance if they follow these six tips.

Find affordable under 25 car insurance coverage now by putting your ZIP into the FREE box to compare quotes from multiple insurance providers!

You can find affordable car insurance by searching for insurance that will best fit your situation. Once you find that and add it to a good driving record, the entire process should be easier than that first lesson on how to drive a car!

Stick With Mom and Dad

Many young drivers look to set out on their own and assert their independence by buying a vehicle and taking over all of the responsibilities of vehicle ownership, such as car insurance. However, that is not always the cheapest route to getting affordable car insurance, according to the National Association of Insurance Commissioners (NAIC).

If you are a young driver who lives with your parents, you can remain on your parent’s auto insurance policy, as long as the vehicle is still owned by your parents.

Your car insurance rates will be lower than if you had your own policy. The calculations for premiums are mainly based on your parents’ driving records and other information as opposed to your own.

Auto insurance rates are affected by age because experienced drivers are more likely to be cautious drivers. That equates to lower claims for experienced drivers, and lower premiums for coverage. Your parents likely have better driving records and credit ratings than you, so their low risk will keep coverage affordable.

Speak with your parents about working out a deal for you to remain on their insurance. For instance, a vehicle may be in a parent’s name, but you make the payments. Additionally, you can also pay the increase in premiums to their insurance once you are added. An added bonus is that your parents will likely receive a discount for having multiple vehicles on the policy.

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Tweak Your Coverage

However, if staying on your parent’s auto insurance policy is not an option, then you will have to get your own policy. It is the law in every state to get at least the minimum amount of coverage; not having car insurance is not an option. However, you can look at your levels of coverage to find the right amount for your situation.

While it is recommended that you get more than the state minimums for liability coverage, you might live in a state that has enough coverage as its minimum.

States with higher amounts of minimum coverage, all $30,000 for injuries per person or higher, include Alaska, Maine, Maryland, Minnesota, North Carolina, Texas, and Wisconsin. However, if you live in Arizona, California, Delaware, Florida, Louisiana, New Jersey, Nevada, Ohio or Pennsylvania then you might want to consider more coverage as these states only require between $10,000 and $15,000 in injury coverage per person.

All of the other states average $20,000 to $25,000 in coverage per person, so you will need to assess your individual needs. For instance, if you frequently drive in a city or urban area or on a highway, then you should probably get more insurance than if you mostly drive in a rural setting.

Additionally, you can also raise your deductibles on your optional insurance coverage, such as collision and comprehensive. Your deductible is the amount that you will be responsible for when damages get repaired. If you have a $500 deductible, then your insurance will pay for the repairs (assuming you have enough coverage) minus $500. Higher deductibles result in lower premiums.

Another way to tweak your coverage is to look at whether you need collision or comprehensive insurance at all. Collision coverage pays for the repair of the damages to your vehicle, even if the accident was your fault. Comprehensive pays for loss from theft or non-accident related damages.

Both are required by a lender to protect the value of the vehicle, but many older vehicles do not need collision or comprehensive because their value is not high enough.

For example, if you have collision with a $2,000 deductible, but your vehicle is only worth $1,900, then it makes no sense to pay for a coverage that will not help you to recoup your losses. The market value of your vehicle, which is what car insurance companies use to assess the value of your auto, can be found at Kelley Blue Book. Make sure to give an actual estimate of the condition and mileage of your vehicle.

SmartMoney.com offers this calculation for determining if you need to keep collision and comprehensive: if your cost for collision and comprehensive coverage is higher than 10% of your vehicle’s worth, than you will save money by dropping the coverage. As collision and comprehensive can amount to near 50% of your car insurance premiums, dropping the coverage can make your insurance very affordable.

Get Defensive

One of the biggest strikes against young people who are trying to find affordable insurance is the fact that they are statistically more likely to get into an accident. As a young driver, you have less experience to evaluate and identify unsafe driving conditions. Young drivers are more likely to engage in distracted driving by using a cell phone or having a carload of people. Young drivers are also more likely to engage in risky driving such as drinking and driving, speeding and not using safety seat belts.

The National Highway Traffic Safety Administration maintains that driving accidents are the leading cause of death for the 15 to 20 year-old age group, and the causes are those that young drivers do not have the experience to identify as dangerous.

One way to lower your risk of getting into an accident as a young driver is to get some experience. Taking a defensive driving course will not only make you a better, safer driver, it will also lower your car insurance premiums. This is true whether you are on your parent’s policy or your own. Just make sure to check with your car insurance provider to find which classes will lower premiums.

Hit the Books

Another option for making your car insurance more affordable, whether you are on your own policy or on your parent’s policy, is to get good grades in school. Most car insurance companies offer a good student discount, for both high school and college-level drivers. Discounts average from 10% to 15%.

Each car insurance company will have its own distinctions for what defines a good student; some require at least a B average and others require you to be in the top 20% of your class.

Make sure that you find out what defines a good student for your car insurance company.

Generally, the car insurance provider will want quarterly grade statements to insure that you are maintaining a certain grade point average. Obviously, car insurance providers have found a correlation that connects high achievement in school to better decision-making on the road. An added bonus is that college graduates pay lower rates than those who never go to school beyond the high school level.

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Drive Well

There are actually a lot of years between 16 and 24, and you can make those years shine as much as possible by being a good driver. Getting a speeding ticket or other violation, being involved in an accident, or having a serious infraction such as a DUI will all cause your premiums to rise. A driver who is 20 years old and has never had a ticket or an accident will have much more affordable car insurance rates than the 20 year-old with a few speeding tickets and an at-fault accident under his or her belt.

Being a safe driver falls into two categories.

First, you must follow the law.

Speed limits have been set for an area because that was the fastest speed that was deemed safe for that particular stretch of road and the common conditions found on that road. Anything over is likely not safe. Similarly, using your turn signals and safety seat belts are all part of a law because they have been shown to keep people alive.

The next category of safe driving is following the rules of the road. While these rules are not law, they are based in common sense for avoiding accidents. For instance, it is considered a rule of the road to only pass a vehicle on the left. The reasoning behind this is that a driver cannot see behind the vehicle on the passenger side as well as on the driver’s side.

Another rule is that is that slower vehicles are supposed to stay in the right hand lane. This is so that everyone who wants to go faster can pass on the right. Following the rules of the road will help you to avoid accidents and lower your car insurance rates.

Get Multiple Quotes

The last tip for finding affordable car insurance if you are under 25 is to get multiple quotes. This allows you to find which car insurance providers really have the best deals and programs for young drivers.

For instance, some insurance companies have vanishing deductibles, accident forgiveness policies or driving devices that record how safe a driver you are. Getting multiple quotes will show you the highs and the lows, and you can choose from there.

You can get multiple quotes the hard way, such as by calling all of the car insurance companies in the phone book or looking up the websites of all the auto insurance companies you can think of. Unfortunately, you will waste a lot of time and effort, and you might miss out on the best quote available because you didn’t think of that particular car insurance provider.

The easiest and best way to get multiple quotes is to utilize car insurance comparison sites on the Internet.

These car insurance comparison sites will provide you will a range of rates to choose from.

By entering just a few bits of information, you are well on your way to finding the most affordable quotes for under 25 drivers!

Get all the car insurance quotes you want right here by inserting your ZIP code into the FREE finder box now!

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