Moving out on your own? You might be shocked at what car insurance prices for 18-24 year olds are these days
Anyone who has owned a car right after high school or college knows that car insurance prices for 18-24 year olds can be steep. Rates can vary depending on where you live and what type of car you drive, but you will typically pay more for your car insurance if you are under the age of 25. When you shop for car insurance, it is important to understand how car insurance rates work and how to mitigate these costs with available car insurance discounts.
Why your rates are higher
Car insurance prices for 18-24 year olds are usually higher because younger drivers represent a higher risk for car insurance carriers. Younger drivers have less experience on the road and are more likely to be involved in an accident. They are also more likely to receive traffic violation citations. These factors all play a part in the higher car insurance rates for 18-24 year olds.
They can vary by state
A closer look at insurance rates across the country shows a wide range of average prices paid by younger drivers. Using a combination of resources such as the Insurance Research Council (IRC), consumer reporting organizations and spot-checking online quotes from some leading car insurance companies, it's clear that auto insurance rates for 18-24 year olds can vary dramatically from state to state. To be legally and comfortably covered for car insurance, the annual car insurance prices for 18-24 year olds can range from $1,220 per year in Iowa to $3,006 per year in Maryland. The average annual price of car insurance for all drivers in Maryland is $1,528 per year, which highlights just how much more expensive car insurance prices for 18-24 year olds can be. Iowa is the second least expensive state in the country, overall, for car insurance, with an average annual policy cost for all drivers of just $1,028.
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Ways you can lower these rates
Short of moving to another state (something you may be doing if you're headed to college) there are ways to reduce your insurance rates if you are a young driver. The best way to keep your costs down is to maintain a perfect driving record. Moving violations and accidents can cause insurance rates to go up, while avoiding these types of incidents can lead to discounts from your auto insurance carrier. In addition to safe driver discounts, you may qualify for some of the following policy price breaks offered by nearly every car insurance company:
- Good student discounts
- Defensive/safe driver course completion discounts
- Safety equipment discounts
- Low mileage discounts
In addition to discounts, you can also keep your rates low by maintaining a good credit history. Insurance carriers take this into account when determining your insurance rate, so paying your other bills on time can actually affect your car insurance costs.
You may also want to consider staying insured under your parents' car insurance policy. It is often less expensive for younger drivers to remain insured this way instead of purchasing a separate policy.
If you are in that age range of 18-24, or even if you have a child who drives and falls in that age bracket, it might help if you get some good advice from a local, licensed car insurance agent. An agent is going to be able to show you a variety of car insurance proposals with different levels of coverage and different price points. An agent may also have more tips on how you can reduce the cost of insuring an 18-24 year old driver. Reply! can help in this effort by putting you in touch with car insurance agents in your area who can help you find a way to reduce car insurance prices for an 18-24 year old.