Car insurance is the most expensive for young drivers under age 25. Lack of experience on the road and risky driving habits of young drivers causes this group to pay the highest car insurance rates. But there are ways young drivers and college students can reduce the cost of car insurance with the following tips:

  1. Stay on your parent’s policy, if possible. You’ll get a better rate when you are part of their household, potentially getting a cheaper premium for the number of people being insured and averaging out your new driving record with other good drivers. Car insurance is priced (in part) on the vehicles owed by the drivers in a household and the driving history of the drivers in the household. When insurance is quoted this way, the insurance company assumes that you (the student) are driving every insured vehicle in the household. So, if your parents own expensive car, 4 wheel drive car or truck or a sports car, even if you primarily drive sedate 4 door car, your insurance company may charge a lot more money for covering you because it will assume that you, the new driver, drive of all vehicles in the household and quote you a price based on that. If your insurance company won’t separate out the more expensive to insure vehicles, getting separate car insurance will probably be cheaper.
  2. Study – If you get B’s or better, many car insurance companies will give you a “good student” discount. Some insurance companies limit the “good driver” discount to those with a few years of driving experience.
  3. If you drive an older, lower-value car, you can save money on car insurance if you skip collision and/or comprehensive car insurance. If you have a low value car, you don’t want to pay $1,000 a year for comprehensive car coverage with a $500.00 deductable when your car is only worth $2,000.
  4. Track your mileage – If you only drive short distances (to and from school or work), you may be able to save more on car insurance by showing your insurance company you drive limited miles. Keep a log of you miles driven based on your odometer to be able to back up your low mileage driving habits.
  5. Combine insurance policies when you can. College students getting renter’s insurance may be able to get a combined policy discount if you buy your car insurance from the same insurance company as your renter’s insurance. Note: Renter’s insurance for college students is a really good idea. College students don’t necessarily live in the best or safest neighborhoods. The cost of replacing your computer, electronic music or video equipment, a bike, and other typical college student possessions are really expensive to replace, especially when compared to the cost of renter’s insurance. Plus it may make your car insurance a little cheaper too.
  6. Speed – it is your enemy, along with any other moving violations. Keep a clean driving record and your car insurance premiums will eventually get lower.
  7. Accidents can also increase your car insurance. Be a careful driver.
  8. Driving While Intoxicated (DUI) – In addition to other major life complications, a DUI will cause a huge increase to your car insurance premiums for years afterwards.
  9. Get car insurance quotes from several car insurance companies. Getting rate comparisons it time well spent and money saved.
  10. Consider a roadside assistance membership. This type of membership entitles you to call for a tow or roadside assistance if your car breaks down or you are locked out. Why is this important to young drivers and students? Moving to college usually means getting used to a new city. Students may have travelled far from home to go to their college of choice and may be too involved in school to find out where a car repair shop is or who to call for a tow. Family may be too far to call for help. Roadside assistance memberships can usually provide help with your car or a tow in less than an hour from your call.
  11. In case you are in an accident or you have car troubles, keep a cell phone & charger in your car.