Jessica Sautter is a Content Writer for CarInsuranceCompanies.com with a Bachelor’s Degree from Eastern Michigan University in Elementary Education with a Major in Reading and a Minor in Mathematics.

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Chris Harrigan has an economic degree from Limestone College and an MBA from Clemson University. He previously managed auto insurance claims for Enterprise Rent-A-Car. Currently, he is using his business and insurance expertise to provide insurance data analysis and visualizations to enhance the user experience.

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Reviewed by Chris Harrigan
Former Auto Insurance Claims Manager

UPDATED: Sep 26, 2020

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Here's what you need to know...

  • Insurance costs go down for those customers who reach 26 years
  • Choosing a relatively high deductible can save money on premiums
  • Comprehensive car insurance only covers loss of a car by theft, or damage to a vehicle by fire, flood, or other non-accident situations

Drivers under the age of 25, who are searching for comprehensive car insurance coverage, may be able to get this coverage at a reasonable cost. However, the total insurance cost for liability, collision and comprehensive coverage is usually quite high.

Remember, comprehensive car insurance only covers loss of a car by theft, or damage to a vehicle by fire, flood, or other non-accident situations.

Collision insurance is needed to collect when a vehicle is involved in an accident if the owner of the car is at fault.

Young drivers in the age category of 16 to 25, who are shopping for car insurance, need to be prepared to pay one of the highest premium rates.

Not surprisingly, this is because they have more accidents and are at risk for other kinds of damage that come under comprehensive coverage.

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Table of Contents

Why is insurance so high for drivers under 25?

Statistics show that drivers under 25 have a lot more car accidents and are involved in situations that result in loss or damage to their car.

Car insurance companies are a business and need to make profits.

They keep accurate statistics showing what they pay out to their customers for damages and what they must charge various categories of customers for premiums.

Statistics show that along with added driving experience, they have fewer accidents of all kinds.

Insurance costs go down for those customers who reach 26 years. As a whole they seem to engage in a less risky behavior, are more likely to have a family and a steady job, and are more responsible in many ways.

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How to Get the Most for Your Money

Research some companies. There are lots of good sites on the internet that compare and read reviews for various car insurance companies. Look at some of the individual company sites and read carefully for information unique to that group.

Some insurance companies offer exclusive benefits for the children of their existing customers. These policies are called joint insurance plans.

For example, if the parents or grandparents are customers, their children or grandchildren would be given a particular rating for every year they have had a license and have not had a violation or accident.

Others have good student ratings, and some offer a skilled drivers class free of charge, and upon completion, customers get a discount.

Read reviews about the reputation of car insurance companies. Even though you may find what looks like good rates, the company may not be as reliable and honest as you want.

More Opportunities to Save on Comprehensive Insurance

There are ways to save money by “bundling” or combining auto coverage with your parents. Many insurance companies look favorably on this idea, and the savings could be significant.

Choosing a relatively high deductible can save money on premiums.

With a higher deductible, you will need to pay more out-of-pocket for damages; but many people come out ahead doing things this way, especially if the car is older.

Factors such as where you live (city, suburb, or rural), kind of car, risk levels, gender, driving classes attended, and good grades are all taken into consideration when calculating quotes.

Young drivers need to realize that they are in a high-risk category when they begin shopping for comprehensive car insurance, as well as collision and liability.

The next step is to find online sites that give comparison quotes and other comparison features, like opportunities for discounts. Think about your selling points, like good grades, no violations and so on.

Choose a few companies that seem to fit your needs and read reviews on these companies to make sure they are reliable.

The prices will be high, but don’t be discouraged because there are discounts to be found that will lower the premiums. Look for companies that offer a “good deal” but are also reliable and honest.

Once a young driver gets the best policy he can, it’s essential to reduce driving risks that could lead to car damage. Irresponsible behavior like drinking and driving, drugs, and many others should obviously be avoided.

Otherwise, their rates will go up. Of course, an “act of God” that damages the car can’t be controlled so prices probably wouldn’t go up on comprehensive insurance.

Enter your zip code in our comparison tool below, and you will receive multiple car insurance quotes for you to compare for FREE.

References:

  1. https://www.statefarm.com/insurance/life/universal-life/joint-universal-life
  2. http://www.investopedia.com/articles/insurance/09/bundle-insurance.asp
  3. https://www.nationwide.com/cheap-car-insurance-young-drivers.jsp
  4. https://www.progressive.com/glossary/comprehensive-and-collision/