Young Drivers: Discounted Insurance Options

Young drivers are considered high-risk and, therefore, often face higher insurance premiums. However, there are ways to get discounted insurance for young drivers. One way is to add the young driver to an existing policy of a parent or guardian, which is usually the most cost-effective option. Some insurance companies also offer discounts for good students, safe driving, and taking a defensive driving course. Comparing quotes from multiple insurance companies can also help find cheaper rates.

Good student discounts

Young drivers often face higher car insurance costs than more experienced motorists. One way to reduce these costs is to take advantage of good student discounts.

Requirements for good student discounts

The requirements for good student discounts vary between insurance providers, but there are some common criteria:

• Students must usually be under 25 years old.
• They must be enrolled as full-time students in high school or college.
• They must achieve a minimum grade point average of a B or 3.0, or be in the top 20% of their class.
• Proof of academic performance is typically required, such as a school transcript or report card.

Examples of good student discounts

• State Farm: Up to a 25% discount for full-time students up to age 25 who maintain high grades.
• GEICO: Up to a 15% discount for full-time students who maintain a B average or better.
• Allstate: A discount of around 20% for students with a B average or better, or in the top 20% of their class.
• USAA: A discount of 4% for students with a B average or better, or in the top 20% of their class.

Tips for getting a good student discount

To get a good student discount, follow these steps:

• Check with your insurance provider to confirm the specific criteria and requirements for the discount.
• Maintain the required grade point average or academic performance.
• Submit proof of your academic performance, such as a transcript or report card, to your insurance company.
• Compare quotes from multiple insurance providers to find the best rates and discounts.

Safe driving courses

• Speed control: Understanding the importance of driving at a speed that allows you to maintain control of your vehicle. This includes adjusting your speed according to weather conditions and your comfort level.
• Maintaining a safe distance: Learning to keep a safe distance between your vehicle and others is crucial for accident prevention. You will be taught to always be aware of your surroundings and maintain a proper following distance.
• Expecting the unexpected: A key component of defensive driving is anticipating the unexpected actions of other drivers. You will be trained to avoid assuming you know what another driver will do and to predict potential mistakes.
• Staying alert: Being alert and aware of your surroundings is essential for safe driving. This includes regularly checking your mirrors and keeping an eye on the vehicles ahead to anticipate sudden stops.

Completing a safe driving course can also lead to significant benefits for young drivers in terms of insurance discounts. Many insurance companies offer discounts ranging from 5% to 20% for those who have taken a defensive driving course. These discounts can help offset the higher insurance rates typically faced by young drivers.

It is important to note that eligibility for insurance discounts may vary based on state regulations and insurer policies. Some insurers may offer discounts only to certain age groups, such as drivers under 25 or above 60/65. Therefore, it is advisable to check with your insurance provider to understand their specific requirements and the potential savings you can achieve by taking a safe driving course.

In summary, safe driving courses are a valuable investment for young drivers, not only for improving their driving skills but also for potentially reducing their insurance costs. By enhancing your awareness, anticipation, and overall safety on the road, these courses can help you become a more confident and responsible driver.

Multi-vehicle family plans

In terms of coverage, each driver is typically assigned to one vehicle, with younger drivers paired with older vehicles to offset the higher rates that come with insuring less experienced motorists. While liability and uninsured motorist coverage limits are usually set at the policy level, collision and comprehensive coverage can often be customised for each vehicle. Additionally, some states allow policyholders on the same policy to combine coverages, enabling them to pay for higher amounts of damages in the event of an accident.

Overall, multi-vehicle family plans provide a cost-effective and convenient solution for families with multiple drivers and vehicles, offering not only savings but also peace of mind.

Used vehicles with high safety ratings

When it comes to used vehicles with high safety ratings, there are a few key organisations and ratings to look out for. In the US, the National Highway Traffic Safety Administration (NHTSA) has a 5-Star Safety Ratings program, which helps consumers make informed decisions about vehicle safety. The Insurance Institute for Highway Safety (IIHS) also conducts crash tests to measure a vehicle's ability to protect its occupants in a collision, awarding a Top Safety Pick or Top Safety Pick+ to the best performers.

The IIHS and Consumer Reports (CR) have also joined forces to produce a list of recommended used vehicles for teens, taking into account safety, reliability, and affordability. Their 'Best Choices' list includes vehicles with curb weights greater than 2,750 pounds, good ratings from IIHS in several tests, and 4 or 5 stars from NHTSA. These vehicles also have standard automatic emergency braking systems and above-average reliability and emergency handling scores from CR. Examples of vehicles on this list include:

• Toyota Corolla sedan or hatchback (2017 or newer)
• Mazda 3 sedan or hatchback (2014 or newer)
• Honda Civic sedan or hatchback

The 'Good Choices' list is similar but includes more affordable options, with vehicles such as:

• Subaru Impreza sedan and wagon (2014 or newer)
• Honda Accord coupe or sedan (2015 or newer)
• Mazda 3 sedan or hatchback (2014-2017)

For newer vehicles, the IIHS Top Safety Pick and Top Safety Pick+ awards for 2024 include a wide range of vehicles from different manufacturers, such as:

• Acura Integra 4-door hatchback
• Hyundai Elantra 4-door sedan
• Mazda 3 4-door hatchback
• Subaru Outback 4-door wagon
• Honda Accord 4-door sedan
• Toyota Camry 4-door sedan
• BMW 5 series 4-door sedan
• Volvo XC90 4-door SUV

So, when considering a used vehicle with high safety ratings, it's important to refer to ratings from organisations like NHTSA and IIHS, and look for vehicles that have performed well in their tests and earned awards or recommendations.

Multi-policy discounts

Some insurance companies, like Liberty Mutual, offer multi-policy discounts when you bundle your auto insurance with your renters or home insurance. This can be a great way to save money on your insurance premiums. If you're a young driver, you may also be able to take advantage of other discounts, such as good student discounts or driver training discounts, to further lower your rates.

In addition to multi-policy discounts, there are several other ways to save money on car insurance for young drivers. One way is to add the young driver to an existing policy. While this will likely increase the policy rates, it is usually more cost-efficient than having a separate policy. If the young driver is a full-time student with good grades, they may qualify for a good student discount, which can save them money on their premiums.

Another way to save money on car insurance for young drivers is to enrol in a safe driving course. Many insurance companies offer discounts to drivers who have completed a driver safety training course, as it can help to reduce the risk of accidents. Additionally, some companies offer telematics programs, which monitor your driving habits and can provide discounts for safe driving.

When shopping for car insurance for young drivers, it's important to compare quotes from multiple companies and ask about available discounts. By taking advantage of multi-policy discounts and other cost-saving measures, you can help keep insurance premiums affordable for young drivers.

Frequently asked questions