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Young Drivers Can Take Steps to Reduce Car Insurance Premiums

By Jim Greene

on February 15, 2011

Car insurance premiums for young drivers are among the most expensive, but most major insurance companies offer ways to bring the cost down for responsible drivers.

The cost of premiums for all forms of insurance is based on risk, and young drivers are statistically among the riskiest on the road. Generally, they lack the experience and judgment that comes with spending a few years behind the wheel. Taking steps to demonstrate responsibility and limit the potential for damage can make a young driver more statistically appealing to an insurance company and result in lower premiums.

Good Grades Can Help Lower Premiums

One of the most obvious ways for a young driver to show responsibility is to maintain good grades. The personality traits that make a good student, such as self-discipline and focus, usually make a better driver, as well. Some insurance companies will lower premiums in accordance with a certain grade point average.

Another way to reduce premiums is to take an elective defensive driving course. Many school districts have basic driver education courses, but the additional knowledge gained in an advanced course can significantly reduce the risk of accidents. It is also another means of demonstrating responsibility.

Vehicle Choice Will Affect Coverage Cost

Choosing the right car can also keep the cost of premiums down for a young driver. At any age, a faster, more powerful car will cost more to insure, because of the higher potential for a serious accident. Add to this the risk of a younger driver, and premiums will climb.

Another factor that applies to all drivers is the age of the vehicle. Older cars are less expensive to replace in the event of a car accident, if they can’t be repaired, so the potential savings to the insurance company will be passed on to the insured in the form of lower premiums. The other side of owning an older car is to be sure that it’s in good repair. Insurance companies will not look favorably on a car that’s unsafe to drive.

The premium rates advertised by insurance companies are usually those for experienced drivers with good records. Young drivers can expect to pay more, but shopping around for available discounts can save money.

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