4 Ways to Lower Car Insurance Premiums for Teen Drivers

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When you first get your driver’s license as a teenager, you might notice just how high your insurance premium is compared to more experience drivers. This is why many parents add their teens to their insurance policy. Even then, though, the premiums can still be pretty high and can increase a car insurance policy by over 60%, depending on the number of vehicles owned by the family.
Fortunately, as you get older, your insurance premiums tend to come down, especially if you’re a safe driver. But at what age does it start to decrease? And what are some ways to lower insurance rates for a teen?

At What Age Do Your Car Insurance Premiums Go Down?

For the most part, once you turn 20, you can expect to see a gradual decrease in the cost of your car insurance. While insurance is still high, even at this age, this is when most insurance companies expect driver experience and maturity to kick in, meaning more responsible driving habits. Some younger drivers have even moved off of their parent’s policy at this point.
This trend continues until you hit age 25. This is the age when you should expect your car insurance premiums to become way more affordable, usually in the range of 50% compared to when you first began driving. A lot still depends on your driving habits, though, so if you have multiple accidents or traffic citations on your record, you won’t see as much of a decrease.

Why Do Younger People Have Such High Car Insurance Premiums?

The main reason young people have such high car insurance premiums is risk factor. Risky driving behaviors, such as speeding, distracted driving, and failure to obey the rules of the road due to inexperience, lead to an increase in the number of accidents among teens.
Young drivers are also less likely to wear a seatbelt, which can lead to greater injury or even death in an accident. Car insurance companies account for all of this risk by charging more to insure a young driver under the age of 25. Fortunately, there are some steps you can take to reduce your rates.

Ways to Lower Car insurance as a Teen

It might seem that young drivers are destined to pay more for car insurance, but they can take some steps to reduce what they pay. Many insurance companies offer discounts that young drivers can take advantage of. These include:
Getting good grades: If a student with a license can keep a high grade point average, they can get a good student discount on their insurance. On average, the discount is about 7%, though a lot depends on the insurance company you use.
Taking a defensive-driving course: Taking a defensive-driving course can also save you on your car insurance. Not only does such a course improve your driving habits, it can also save 5% to 20% on car insurance, depending on the company.
Buying a vehicle with safety features: A vehicle with added safety features means that a driver is safer overall while driving. This is why many car insurance companies offer a discount for a vehicle with these features. And while this discount can be relatively small in some cases, added in with other discounts it can help you save on insurance premiums.
Driving less: There are also discounts for driving less, which makes sense since driving less means less time on the road and lower odds of being in an accident. Called a low-mileage discount, such discounts can save you around $30 a year if your insurance company offers it.
Ultimately, a having good driving record is the best way to reduce your insurance premiums. Safe driving coupled with various discounts can also add on to savings. Fortunately, as you get older and gain more experience as a driver, your insurance rates will start to go down.

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