5 Tips for Lower Youth Auto Insurance Rates

Many auto insurance companies consider drivers younger than 25 a higher-than-average risk for vehicle-related accidents. This high risk of teen accident and death can skyrocket your insurance rates 50 to 100 %, says Jeanne Salvatore of the Insurance Information Institute (III), and frequently translates into high teen auto insurance premiums.

But wait-don’t take away your teenager’s car keys just yet. You can save money on car insurance for young drivers when using sites like  and if your teen expends some effort and follows these tips.

  1. Select a Safer Car – Teen car insurance may cost up to 50 % less if your teen drives a safer car such as a Honda Civic or a Volvo. Newer model cars with airbags are the least expensive to insure-and the safest for your teen to drive. Sports cars, expensive cars, high-performance cars and SUVs carry higher risk and higher insurance premiums.
  2. Use Deductibles and Smart Coverage – For one of the reliable budget cars mentioned above, drivers can sometimes skip extensive comprehensive and collision coverages according to their appetite for risk. This will bring premium rates down, but the policy holders will be responsible for more payouts in the event of an accident.
  3. Garage in a Low-risk Area – Students and other new drivers often don’t have a choice in where they want to keep their vehicle. They have to register it and drive it where they live. However, families can sometimes make better choices by evaluating specific ZIP codes and neighborhoods that insurance companies use to generate premium rates.
  4. Find Driver’s Ed Programs – New drivers can often take driver’s education classes or online traffic school courses that will give the insurer an incentive to drop car insurance rates lower in an auto policy.
  5. Remove towing – Good maintenance and planning can save you money. Don’t lock your keys in your car. Don’t run out of gas. Make sure you have a spare and know how to change it. Sometimes your car will break down, but if your car is well-maintained, it won’t happen often. You pay $10 – $30 a year over the life of your policy and one tow costs $100. In the event of an accident, towing is almost always covered under collision.

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