How Male Teen Drivers Can Save Money on Their Car Insurance
It’s well-known that young men face the most expensive car insurance rates compared to other age groups. However, there’s no reason to lose hope if you fall into this demographic, or if you’re covering the insurance costs for your son who’s a young adult.
We’ll share the rationale behind high rates for male teen drivers, followed by suggestions for the best car insurance for males under 25 and several strategies and discounts you can use to help you lower your rate and better afford the coverage you need.
Why Insurance Is So Expensive for Teen Males
Insurance is based on risk. It’s not just car insurance but all types of insurance. Because insurers are running a business, they have to make more money than they pay in claims. So if they have a higher risk of paying a claim, they’ll charge higher premiums.
Teen boys are statistically more likely to be involved in an accident. So while you might be the safest driver on the planet, the fact that you’re a teen male puts you in a high-risk category, and you’ll pay the highest premiums of any age group.
While a couple of states ban premiums based on gender, insurers in places where it’s allowed will charge males higher rates than their female counterparts.
Best Car Insurance for Teens
You’ll probably be happy to hear that many of the most reputable and nationally available companies are also some of the best for teen drivers.
You and your parents may be wondering if you’re better off getting your own policy or adding yourself to theirs.
Joining Parents’ Policy Versus Getting Your Own
If you ask your friends, you’ll probably discover that most of them are part of their parents’ policies, and there’s a good reason for that. Insurance tends to be less expensive when you’re added to an established policy than when you purchase your own.
When you’re trying to control finances and set a good foundation for the rest of your life, it’s essential to spend your money wisely and not pay more than you need to.
As long as you live with your parents, you can be on their policy. If you move away to go to college but still spend breaks at your parents’ home, you can still consider that your primary address and stay on their policy.
Once you move out on your own, though, you’ll need to get your own policy. By the time you’re in your early 20s, you’ll have had several years to build your driving record. As long as you’ve stayed out of trouble, your insurance rates will be a lot lower than they were when you were a brand-new driver at 16 years old.
Best Insurance Providers Who Cater to Teen Drivers
If you’re in the military or one of your parents is or was, you might be able to get USAA auto insurance. USAA tends to be the lowest-cost insurance provider, and they get decent customer satisfaction reviews. But they only offer policies to people associated with the armed forces.
The biggest car insurance provider in the country is State Farm, and they also tend to have the lowest rates. In addition, they offer the Steer Clear program as an incentive for teens to save money by keeping a clean driving record.
Travelers and Nationwide are also highly competitive, so when you’re comparing quotes to find the best provider for your situation, you’ll want to make sure to include these three and USAA if you qualify.
Ways to Save on Car Insurance as a Young Male
There’s no way around the fact that your car insurance rates will be high as a male in your teens or early 20s, but thankfully, you may be able to ease the financial burden with these suggestions.
Compare Car Insurance Rates
Since adding you to a policy is a major change to your parents’ coverage, it’s a good time to reevaluate providers. For example, one company might be a perfect fit for a middle-aged couple or individual, but it might be a bad fit for a teen driver.
The only way to know if you’re getting a reasonable rate is to compare providers.
Choose Your Car Carefully
Newer cars have safety features that could help keep your rates low, but the more expensive a car is, the higher your premiums will be. So, you might want to consider a vehicle that’s over 10 years old but still has stability control and antilock brakes.
If you can avoid paying for full coverage on your vehicle, you’ll save a lot of money, but it only makes sense to drop full coverage on a car that isn’t worth much, and you can afford to repair or replace it if it gets damaged.
Check Out Discounts
Sometimes, things you do are associated with your driving risk. So even if something is unrelated to driving, if there’s a correlation between it and safer driving, you might find there’s an insurance discount for it.
- Driver’s education – Completing a driver’s education course helps you become a more aware and safe driver, and you’ll usually earn a discount for completing the course.
- Good grades – If you have a 3.0 GPA or higher, most car insurance providers will offer you a discount because students who are dedicated to their studies tend to be safer drivers.
- Safe driving – Drivers who have built a clean record are more likely to remain safe drivers. You can’t be eligible for this discount the first year you start driving, but by the time you’ve had your license for three years, you should look into your eligibility for and the availability of this discount.
- Student away from home – If you go to college at least 100 miles from home and don’t take a car with you, you’ll probably be eligible for a discount.
Standard discounts available for all drivers might be options for you as well, like bundling home and auto, military, and paperless billing.
Tips for Safe Driving
First of all, you need to get good sleep, so debunk the sleeping myths that hinder solid sleep, and commit to healthy habits that leave you feeling rested and alert.
One of the basic routines for safe driving is to scan, identify, predict, decide, and execute (SIPDE). This method will help you always pay attention to the possible hazards on the road and act accordingly.
Limit the number of passengers in your vehicle because they could cause you to become distracted. Your safety rests in your ability to pay attention, and if your passengers distract you from that, you could put yourself and them at risk.
Melanie Musson writes and researches for the car insurance comparison site, Insurantly.com. She’s passionate about helping others secure their financial future through the right insurance policies.
