Young drivers under 25 pay more car insurance than older drivers, but why? From a college student’s perspective, they are more alert and likely to prevent an accident than older drivers. But from the insurer’s perspective, young drivers don’t have enough driving history for the company to gauge risk. Here’s a more in-depth explanation of car insurance for drivers under 25 and ways to get discounts.

Perceptions of Drivers under 25

Insurance premiums are proportional to the risk the driver represents to the company providing the coverage. Risk factors include the driver’s age, income, and driving record. Even though car insurance for drivers in their teens to early twenties is comparably high to other age groups, it’s still possible for young drivers to lower their monthly rates.

The driving experience is a key factor weighed by insurance companies, but some firms give breaks to younger drivers who qualify. Insurance premiums for young drivers can range from $80/month to nearly $300/month. With such a wide range of pricing, young drivers should get various quotes before deciding on a policy. Working toward the lowest car insurance rates means taking driving seriously and avoiding traffic tickets.

Insurance Company Discounts

While insurance companies generally view young drivers as higher risk, they reward individuals with discounts if they demonstrate mature behavior. Good grades, defensive driving, and safety considerations play into lowering insurance rates if you are new to the road.

The youngest drivers – high school and college students – can get 5 to 15 percent discounts on auto insurance if they have an A or B average. Insurers believe students who achieve high grades are less likely to get in accidents or break traffic laws than students with poor academic performance. “Good student discounts” are offered by major insurance companies such as State Farm, Progressive, Liberty Mutual, and several others.

Another student discount available is for individuals who attend a college but leave their car at home. Mileage is an insurance factor for drivers of all ages, so if you limit your driving, you’ll pay lower premiums.

Taking a defensive driving course from an accredited school is another way to get a 15 percent discount from certain insurance firms. The course will give you the knowledge to prevent accidents, which lowers risk in the insurance company’s eye.

College students who rent apartments can reduce costs by bundling renter’s insurance with car insurance. If you and your roommate have good driving records, team up to take out an auto policy together for a multicar discount.

Tracking Driver Behavior

There’s yet another option for car insurance under 25, which involves joining a telematics program. A telematics device can be placed in your vehicle to track your driving habits. It monitors usage, speed, braking, and time of day. If the data shows you practice good driving, you can get up to a 35 percent insurance discount.

Various big-name insurance carriers such as State Farm, Progressive and Travelers offer telematics programs to consider. Some companies, such as Metromile, base their car insurance rates entirely on telematics. Practicing driving safety, in general, is the key to paying the lowest insurance costs. The more you can keep your driving record spotless, the more significant insurance advantages you’ll enjoy down the road.

Drivers under 25 usually pay higher car insurance premiums, unless they take steps to prove they are safe and responsible behind the wheel. If you need answers to any other insurance-related questions, contact the experts at Scautub Agency in Scotia, New York today. We will be happy to discuss all your insurance coverage needs.