3 Ways For Young Adult Drivers To Save On Auto Insurance
Some of the highest auto insurance rates you'll ever have to pay come when you're newly adult and perhaps newly responsible for all of your own finances. This is also a stage where you may still be training to enter your chosen career field, or you've just begun in the entry levels of your industry. In other words, your insurance is most expensive during a time when your finances may be very fragile. Finding a way to keep these expenses under control can make a big difference to your wallet at this point in your life. Take a look at some of the ways young adult drivers can save on auto insurance.
Consider Staying With Your Parents
Consider staying on your parents' insurance policy for a little longer. If your parents started insuring you when you were a teenage driver, staying with that policy instead of getting your own separate policy could be the best way to save. Now that you're an adult, you can always take over your share of the payment, but why not keep a smaller payment if you can? And your parents may be seeing a benefit from the arrangement as well – insurance companies tend to offer discounts for insuring multiple cars, so they're getting a price break for you being on their policy.
If you absolutely can't stay on your parents' car insurance policy, you may want to at least stay with their insurance company. Ask the insurer if they have a "legacy" discount. This is a discount for customers whose parents have been long-time customers of the same company. If you've been on your parents' policy for several years and you're just now getting your own, you may be eligible.
Sign Up for Defensive Driving Courses
If you're a broke college student or recent graduate, signing up – and paying for – another class may not be the advice that you wanted to hear. But if you have the money to pay for a defensive driving course, it may give you savings that will make the time and expense worthwhile.
Defensive driving classes are more than just basic driving instruction. They'll help you learn how to navigate hazardous driving conditions, as well as anticipate and avoid dangerous situations on the road. The big benefit of improving these skills is that they can help keep you alive and uninjured. However, another benefit is that insurance companies often give discounts to drivers who take these classes, and the discount can last for multiple years. Saving 5% (for example) on your insurance is one thing, but saving 5% for five years can add up to a lot more money. Talk to your insurance company to find out exactly how much of a discount they offer and how long it lasts for.
Prove Your Abilities
Young adult drivers get higher rates than older drivers because statistically, they're more likely to get into accidents, making them more expensive customers to insure. Most people want to be judged as individuals and not by their demographic, and in most situations, that's the best way to approach things. But in insurance, judging an individual by their demographic is simply how things work.
Or is it? Is it possible for an insurance company to give a more personalized quote based on your specific driving behavior rather than statistics about your demographic? Maybe. Some insurance companies offer devices that you can plug into your car to monitor your actual driving habits. Then you can get an insurance policy based on the way that you actually drive. If you're confident in your safe driving abilities, you may want to give this a try.
But keep in mind that the device monitors more than just driving actions like hard stops or fast turns – it also keeps track of where you're going and when you're driving there. Driving through unsafe neighborhoods or driving late at night may negatively affect your insurance rate, even if you're driving safely.
If you're looking for more information on what insurance is right for you in this time of your life, consider talking with a reputable car insurance agency like Affordable Insurance for help.