Statistically, teenagers and young adults are more likely to be involved in auto collisions than any other group of people. Drivers in their first year of receiving licenses are the most likely to crash, with people between the ages of 16 and 19 up to four times more likely to have an accident than a more experienced driver. Young drivers are also more likely to be involved in alcohol-related accidents, and many young people don’t use seatbelts. All of this adds up very quickly to make young drivers one of the riskiest demographics to insure. This causes insurance rates for teenagers to be much higher than those for older drivers.

Car insurance companies calculate the cost of premiums based on the likelihood of a driver to be involved in an accident. Drivers with a preexisting history of accidents, speeding tickets or DUI convictions will pay more for premiums. Where actual driving history is unavailable, such as with teen drivers, statistical data is used to determine insurance rates. This means that even if a teenager is very responsible and has perfect driving, his rates will still be influenced by other drivers his age until he can establish a good driving history of his own.

Fortunately, finding cheap car insurance for young drivers is not impossible. There are several ways to locate an affordable policy, and once the driver turns 25 his insurance premiums will likely decrease dramatically. After carrying insurance for several years, he will be able to take advantage of policy discounts for being a loyal customer.

Companies that Provide Cheap Car Insurance

While all car insurance companies will offer coverage to young drivers, some specialize in providing affordable insurance to high-risk drivers. These so-called high-risk insurance companies cater to teenagers, people with a history of accidents and those whose credit is poor or not established.

Teenagers are also more likely to get affordable rates if they share a policy with their parents rather than purchasing their own insurance. The parent’s rate will increase, but not by as much as a new policy would cost. Many college students remain on their parent’s insurance until they graduate and split the cost of the policy with other family members.

How to Get Discounts as a Young Driver

Although young drivers pay higher premiums than others, they do have discounts available. Most insurance companies will offer a discount to students who get good grades. The actual amount of the discount varies, but could be as much as 10 percent off the cost of insurance each year. For some young drivers, this can add up to a couple hundred dollars shaved off each annual term.

In order to qualify for the good student discount, the student must send a report card or transcript to the company each year. He must maintain a 3.0 GPA, or solid B average. Other companies will require a young driver to be in the honor’s program or the Dean’s list. Each year that he qualifies, the discount will apply toward the policy. If his grades slip, however, he will not be able to use the discount again until his grades improve, and he may not be able to qualify for the discount a second time.

Other discounts may be available to young drivers who are willing to pursue additional driver’s education. Defensive driving courses or other types of advanced driving classes can be taken that will lead to policy discounts. These courses can usually be taken through a community college or even at the local library; check with the DMV to see how to enroll.

Young drivers can also save money on car insurance by driving a vehicle that’s affordable to insure or by reducing the coverage they carry. Some coverage may be unnecessary, especially on an older vehicle, and there may be further discounts available through a specific insurance company. The insurance agent or customer service representative will be able to provide suggestions about how to reduce the cost of premiums.

If you have not yet purchased a new insurance policy, you can begin by getting a free quote online. Once you’ve input the age and gender of yourself and any drivers, you will be matched with insurance companies that can provide affordable coverage to your family. By comparison shopping among multiple carriers, you can save money without sacrificing coverage.