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: Mar 13, 2020

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Cheap car insurance for young drivers very obtainable but you have to understand the car insurance industry and how insurers define risk to understand why car insurance rates for young drivers are high.

Car insurance risk is defined as “The risk of a policyholder filing a future claim”

Many variables are used to calculate an applicant risk profile and one of the main factors is the number of years as a driver. Remember the expression no credit is almost the same as bad credit? It is the same for car insurance. Car insurance companies simply value drivers with a track record of good driving history as lower risk than new drivers. Car insurance rates are high for young drivers not based on their age but simply their experience.

Car insurance statistics also show an increased accident risk when younger drivers are behind the wheel. The Insurance Institute of Michigan for example reports that:

  • Young drivers are 2x as likely to be in a car accident as drivers aged 55 to 64
  • Drivers aged 16-24 have a greater risk of being in a fatal car accident than almost all other groups

Young drivers are not necessarily bad drivers but its easy to comprehend that good driving skills come with experience and why younger drivers are easily categorized as higher risk.

Who has Cheap Car Insurance for Young Drivers?

Very few car insurance companies specialize in cheap car insurance for young drivers due to the high risk associated with teenage drivers however almost all auto insurers offer teenage car insurance coverage and there are many things you can do to find affordable car insurance premiums.

Buy a Used Car

A large part of car insurance premiums are based on the model of the car and new cars carry much higher replacement value so buying a used car will certainly help with lower premiums.

Have your Parents add you to their Policy

If your household situation allows it speak to your parents about adding you as a driver to their car insurance policy instead of seeking your own coverage. While there are circumstances where a young driver must have their own policy its very common to simply become an additional driver on your parents existing policy which will help with premiums.

Take advantage of Car Insurance Discounts

Auto insurance companies offer a wealth of car insurance discounts and many of these are not exclusively for mature drivers. The Good Grades Discount is reserved for young drivers (usually with a B average or higher) and if you are buying a car make sure the vehicle has many safety and anti-theft features to apply against auto insurance premiums. A defensive driver course is also recommended but make sure the course is approved by potential car insurers first as some insurance providers only provide discounts to company approved courses.

Cheap car insurance for young drivers may be difficult to find but affordable car insurance is readily available if you take the time to compare auto insurance companies.

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