How does my friend have such a low car insurance rate with AAA?

"My friend, who is 17, says they pay $100 a month for full coverage with AAA. This seems like such a low rate for full coverage. How do they have such a low rate?"

Answer
“While it can be rare for new drivers to have a low rate, especially with comprehensive insurance and collision insurance, it isn’t impossible.
As a young driver, it is possible your friend is on a policy with their parents. As an additional driver on the policy, their parents’ rate may not be impacted significantly by the addition. If your friend was on their own policy, their rate could be significantly higher.
Many insurance companies also offer discounts for young drivers. This can include student discounts, good driving discounts, or driver training discounts. Having these discounts applied to the policy can help reduce rates. The type of car they drive and where they live can also impact rates.
If you’re interested in lowering your own rate, you can look into insurance with AAA and other companies.”
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Emily Maracle
Answered on Jul 26, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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