Car insurance rates can be different from one person to another, especially for those under the age of 35. Because car insurance companies deem younger drivers a greater financial risk to provide insurance to, rates for motorists under 35 are high. This is because historically young motorists speed more, get into more accidents, have less driving experience, and are generally more reckless. Let’s see what sort of options you’ll have to save money on an auto insurance policy when you’re under 35.
If you plan on driving, you have to have a car insurance policy. But are you sure you’re getting the lowest rate?
States require a minimum level of liability coverage to operate a motor vehicle. This is to make sure if there is an accident caused by you, it is covered by your policy. But even with these state requirements, young motorists pay more for insurance because of their limited driving experience and are guilty of driving more aggressively and having more accidents.
Because car insurance rates don’t tend to drop until motorists are 25 or 26 years old, the only way to make sure you’re getting the best rate is to get quotes from multiple car insurance companies.
Reduce Your Rates
Even though young motorists will pay more for insurance than their older counterparts, there are still some ways to reduce your costs. Let’s take a look.
Defensive Driving Course
This is the easiest and most straightforward way to reduce your car insurance rate. All car insurers will look at a completed defensive driving course as a good mark towards your driving record and can reduce your rates up to 10% per month for completing the course. But, you must make sure that the course you’re taking is approved by your specific car insurance company.
Different states will have different types of defensive driving courses that are approved at their state level. Then you want to be sure that the course is also approved by your specific car insurance company. For example, State Farm has its own approved and preferred defensive driving courses and may not recognize courses completed outside of their own version. So, be sure what defensive driving courses your state offers, and then be sure the one you go with is approved by your car insurance company.
Car Monitoring Device
You may have seen ads from insurance companies offering motorists discounted rates for “good driving” or “safe driving”. They determine how you drive by connecting a sensor to the car which monitors things like road speed, mileage, and more. Think of these devices like a FitBit for your car which can show a car insurance company how you operate your vehicle. Through “good driver discounts” some car insurance companies will take good driving into account and offer you a better rate because you have proved you are a safe driver.
But, the opposite is also true. If you put a driving sensor on your car speed around town and the highway you may be surprised to see your rate actually increases! Be sure if you install a car driving sensor into your car that you seriously obey the rules of the road if you want to reduce your rate.
Drive Less
This may be easier said than done as many people commute to work or school. If you are able to reduce the amount of mileage you drive every year this can also reduce your car insurance rate. If you normally drive to work maybe you could start taking public transit? What about taking public transit to school? If you can prove to your insurance company you don’t drive that much every year they may be inclined to reduce your rate.
*During the Covid-19 pandemic, many of us are driving less, and most car insurance companies have offered discounts and rebates to reflect this. For example, many car insurance companies are providing refunds of up to 15% a month for motorists barely driving during the pandemic*
Increase Your Insurance Deductible
This is another smart way to reduce your insurance rate but it does have some drawbacks. When you pay your monthly premium for insurance that figure reflects what you will pay as your deductible following an accident. A “deductible” is the amount you pay out of pocket following an incident that kicks in your car insurance company to pay the remainder.
When you increase your deductible (the amount you pay out-of-pocket after an accident) it means you have lowered your monthly premium payment. So this can reduce your rate as long as you don’t need to file an insurance claim or get into an accident as you’ll be paying less over the course of a year. This will reduce your overall insurance costs (if you don’t need to file a claim).
Get Multiple Car Insurance Quotes
With all things being the same (coverage level, deductible, state, driver age, etc) the only real way to make sure you’re getting the lowest rate is to get multiple car insurance quotes. Insurer to insurer can have very different looking prices for monthly car insurance payments. For this reason, with all things being the same, the only solution to get the best rate is to get more than one quote.
Where Can I Get a Fast Car Insurance Quote?
There are lots of different places you can find suitable insurance coverage and it is a good idea to get quotes from a few different companies. To get a quote for free right now in seconds:
