Car insurance is something every driver needs but something that can certainly be biased on the wallet. There are certain categories that people fall into where insurance policies will be priced out the roof and unfortunately, car insurance under 25 is one of them. But the good news is there are options and ways to reduce those ridiculously high costs.
Before getting into solutions, lets dive into why you are being targeted negatively. First and foremost, those under the age of 25 are young and inexperienced. You may think that nearly 10 years of driving is a lot, but that fails to compare to those who have been on the road behind the wheel for 20, 30 or 40 years.
Another reason for the high rate is the high number of accidents teenagers and young drivers get into. Between the inexperience and the constant distractions of friends in the car, the stereo and even alcohol or drugs can all play into the high rate of accidents that can and do occur.
So what do insurance companies take into account when handing down the sentencing of car insurance under 25? There are actually a plethora of facets that are looked upon before delivering the final dollar amount for what you will be paying for your policy.
First comes location. This is something that people of all age will have taken into consideration as those living in the mountains are at higher risk than those driving in the middle of Nebraska. However, if you still live with your parents it is wise to jump onto their existing plan as it can save you a great deal of money.
The next thing that will be looked at is the type and brand of car you are driving. A lot of people opt to go for smaller, more compact cars than the large SUVs and sedans because it offers a lower premium.
What is on the inside of the vehicle can contribute to the cost as well. For those looking at car insurance under 25, beefing up the safety features that your vehicle has can be a huge cost saver. For instance, things like air bags, alarms and other anti-theft systems will keep you and your vehicle safe which is a big winner in the eyes of insurance companies.
Finally, companies are going to look at your driving record thus far. Those brand new drivers that just turned 16 often have extremely high rates because companies have nothing to base their price off of. But even the young adult who just turned 24 is going to face some troubling quotes if they have a flurry of speeding tickets, a DUI or have been involved in an accident without insurance.