Under 21 Car Insurance
So you’re under 21, and yes, we know, looking for car insurance is a complete pain in the neck. Most car insurance companies want to charge you an arm and a leg for insuring you. You’re probably thinking, “I’ve had a car since I was 16 and I haven’t been in one accident, ever” or “I’m on my third car since I was 16, and finding car insurance is impossible.”
Well, to be completely honest car insurance companies have a reason to be a bit scared of the under-twenties age group. Why? Well the data simply shows that you’re more likely to get into an “auto collision” (very fancy). In fact, drivers (both men and women) between the ages of 16 and 19 have the highest annual crash and traffic citation rates when compared with all the other age groups. By in large, the under 21 age group costs insurers the most money. A more sobering fact is that the number one cause of death in teenagers is not suicide, homicide, it is fatal car crashes. The causes of these accidents could come from a multitude of areas, perhaps texting while driving or simply driving while distracted.
So there is some rhyme and reason as to why the car insurance companies charge the millennial’s so much to insure their vehicles. However, that leaves you between a rock and a very hard place. You’re most likely working, in college, or doing both, working to pay off your sky-high tuition bill. The last place you want to spend your money is having to shell out hundreds to ensure your vehicle. There are several things you can do to help bring those costs down to a reasonable way. We’ll illustrate some of those ways here.
Before we begin we’re going to start by making some assumptions, first that you’re either in college or working. Access to parental units may or may not exists, and that you need to find the easiest, best, and fastest way to quality insurance. So, let us begin by defining a few terms first that will be important as we continue our conversation.
- The amount you have to pay out-of-pocket for expenses before the insurance company will cover the remaining costs.
- Agreed upon fees paid for coverage of medical benefits for a defined benefit period. Premiums can be paid by employers, unions, employees, or shared by both the insured individual and the plan sponsor.
- Let’s say your car was damaged by something than a car accident, like a falling tree, a flood, fire, theft or even vandalism, comprehensive coverage will cover the costs of repairing such damage. It may also cover expenses incurred while repairing the vehicle, such as having to get a rental car etc.
- This refers to if you ever collide (hence, collision) into something else, for example a fire hydrant, this will keep you covered from any damages that were inflicted upon your car.
- A car insurance policy that protects you from when another party attempts to take any legal action towards you because of an auto collision.
- The underwriter is the person who decides if you’re suitable for a type of insurance and how much you will pay for said insurance. This is the most important person when it comes to determining your auto insurance costs.
Now that we’ve gotten the most important terms out of the way let’s get to the meat and bones of the matter. How, as someone who is under 21, can get the highest quality auto insurance while paying a reasonable price. Luck for you, there are actually very good ways to make sure that you’re doing just that. For this first one we’ll assume you’re in college.
- Look for Insurance Companies That Offer Incentives to College Students
There are some companies that offer better discounts and offers to the under 21 crowd if you’re an active college student (or even alum). For, example, esurance offer up to 15 percent off your premium if you attended one of the following Pac-12 schools:
- University of Arizona
- Arizona State University
- University of California at Berkeley
- University of Colorado Boulder
- University of Oregon
- Oregon State University
- Stanford University
- University of California at Los Angeles (UCLA)
- University of Southern California (USC)
- University of Utah
- University of Washington
- Washington State University
Furthermore Esurance offers discount for being the bright scholar that you are. Assuming that you’re under 25 with at least a 3.0 GPA, Esurance offers a “good student discount” where you can save up to 10 percent on liability, collision, and medical payment coverages. However, discounts do change depending on the state you’re located in.
State Farm and GEICO also offer a similar program where good students can save up to 25 percent on their auto insurance.
- Compare Offers From Different Auto Insurers
This is a given at any age, but especially if you’re under 21, this will probably give you the result if you’re looking for the lowest price. As chance, would have it, we wrote an article on that too! Give a look over, and let us know what you think!
- Which car do you drive?
As much as we all would love to drive around a sweet Rolls-Royce, Bentley, or Lamborghini, (if we could afford it), chance are it would cost more to insure than a years’ worth of gas for a reliable Toyota Corolla. The point of that was to say that underwriters have a reason to allot higher premiums for vehicle that inspire “riskier” driving than others. Chances are if you’re driving a Ferrari California you may be just a tiny-bit more likely to push the speed limit than if you were driving a small family sedan. Of course, pushing the speed limit can lead to accidents, and accidents cost car insurance companies money which they do not like.
If you’re at a stage where you’re looking at purchasing a car or getting rid of your old one look into cars that are cheapest to ensure. When looking for that new car look that is has safety features already installed, as the insurance companies as huge plus because it is less liability for them. The make and model of the car you use also has a great effect on how much your insurance premium will be. Bankrate created an extremely useful chart that lets you compare which auto insurance companies give you the best discounts for a variety of topics (having multiple policies, multivehicle, anti-theft etc.). Forbes has also made a slideshow with the 10 cheapest cars to insure, if you need a little inspiration if you’re lacking a little imagination.
This is very succinct and informative list on how, if you’re under 21, you can ensure that you’re getting the best type of coverage for the price. This should get you on your way to doing just that. Also, keep going if you’re in school and working, it’s tough, but the results are worth the hardship. If you have any questions or comments please leave them here and we’ll get back to you!