Statistically speaking, younger drivers get in more accidents. Drivers under 24 account for 13.2 percent of all motor vehicle crashes, according to the Census Bureau. Worse yet, 13,957 of those crashes involving young drivers are fatal, and accidents are the leading cause of death for young people. So naturally, auto insurance companies will charge you a higher rate. I know… it sucks. But the good news is that there are still ways to keep what you pay for insurance relatively low.
Choose A High Deductible.
Opt for the $1,000 deductible, rather than $500 deductible if you can. Sure, you’ll need to pay $1,000 out-of-pocket if you get into a crash, but you will pay much less over the course of the year if you don’t smash your car. It’s much cheaper to stash money away in an emergency fund.
Drive A Safer Car.
A four-door sedan or a van with a high safety rating will get you the lowest auto insurance premium. It may not be the hot rod that gets all the girls, but at least you’ll have money to take them on dates.
Pass On Collision.
If you bought that new car, then you’ll definitely need collision insurance. However, if you’re driving a clunker worth less than $3,000 that’s already paid off, then you can skate by without collision insurance. If you get into an accident, your car will just be totaled, since the cost of repair would be higher than the car is worth. Besides, you can just buy a new clunker with all the money you’ll save.
Get Good Grades.
The most popular program is the State Farm Good Student Discount, which cuts your rate by 10 – 15 percent if you have a 3.0 GPA or higher. Other companies like Mercury, Allstate, Progressive, Geico and other companies offer this discount on auto insurance for students as well.