Young Driver Car Insurance -- 4 Ways to Save

Cheap insurance for young drivers is almost an oxymoron. If you're under 25, it's essentially a given that you're going to pay more for car insurance.

From joyriding with that feeling of invincibility to the learning curve that we all went through when we first started driving, young drivers undeniably present a greater risk to car insurance companies.

That said, there are also several things that can be done to minimize the cost disparity commonly seen with car insurance for young drivers. Insurance companies aren't out to punish younger drivers, especially those who display maturity beyond their years.

Still, finding cheap insurance for young drivers is not an easy task. Here's what you need to know to lower your costs and accept those variables that are out of your control.

High premiums for young drivers

According to one recent study, drivers between the ages of 16 and 25 are involved in 26 percent of all car accidents, despite the fact that they account for only 11 percent of all drivers on the road.

Yet, many insurance companies charge much higher premiums that even these numbers suggest: In New York, for example, drivers under the age of 19 pay car insurance rates that are often more than 100 percent higher than drivers between the ages of 60 and 74, another high risk group.

Various state laws can account for some of this discrepancy; New York is the only state that guarantees drivers 18 and older can rent a car.

Insurance companies themselves account for a good chunk of this discrepancy, as well. Some companies have determined that offering relatively cheap insurance for young drivers can help them corner this market and generate solid profit margins. Other companies have decided the risks are simply too great.

RELATED: Common Mistakes Made by Teen Drivers

Indeed, as car insurance for young drivers hold the potential for larger profits and greater financial risk, the calculus for insuring young drivers is quite similar to other investment prospects.

So, what does this mean for young drivers and their families? Well, for one it means that you need to get quotes from as many different reliable companies as you can find. It's not uncommon to find car insurance for young drivers that differ by hundreds of dollars.

Strategies to get cheap insurance for young drivers

  • Look for common young driver discounts including lower rates for good grades, completing a driver's ed class, and low-mileage discounts.
  • A good credit rating helps lower the cost of car insurance for young drivers and older drivers, but younger people generally have no credit so start accruing points as soon as you can.
  • Maintain a clean driving record. Even a single speeding ticket can frequently raise your rates by 10 to 20 percent.
  • Drive a safe car with less horsepower. No matter how old you are, the type of car you drive will have a big impact on your car insurance costs.

Putting a young driver on a family plan is a double-edged sword. It typically yields cheap insurance for young drivers, especially if the parent can list the child as a secondary driver. To list a child as a secondary driver, however, the young driver can't own his or her own car, or even be the primary driver of a vehicle, no matter whose name is on the title.

Moreover, if your child starts racking up traffic violations and/or is at fault in an accident, the entire insurance policy may get cancelled.

Shopping for online car insurance quotes

Again, your best strategy for finding cheap car insurance as a young driver is to get quotes from as many different insurance companies as you can and by asking for quotes for a number of different types of policies. Shopping for insurance is never a stress-free proposition, and even drivers who start their search motivated to stay diligent can quickly become discouraged and jump at the first reasonable-sounding quote.

Yet, by shopping for car insurance with an online referral service, such as the one offered here at NetQuote, you can fill out an easy online form and get connected to several companies in your area. In this way, much of the legwork and stress is removed from the process, as these companies will take the initiative to contact you.

Better yet, you can review these quotes from the comfort of your own home, allowing you to make a confident, carefully considered choice for your car insurance.