What You Need to Know About Car Insurance for 20 Year Olds
When you’re in your early 20s, you’re in a strange transition period of your life. You’re a full adult, but all of the responsibilities that come with being an adult are still quite new to you. It can get overwhelming trying to navigate all of these new responsibilities.
One of the biggest challenges you’ll face is finding affordable car insurance. As a young driver, you’re considered to be a high-risk driver, which means that insurance companies will charge you more for car insurance.
However, there are a few things you can do to get the best car insurance rates while in your early 20s.
- Shop around and compare quotes. The best way to get the best car insurance rates is to shop around and compare quotes from multiple companies. Don’t just go with the first company you find – take the time to compare rates from a few different companies to make sure you’re getting the best deal.
- Get quotes from multiple types of insurers. There are a few different types of insurers out there, so it’s worth getting quotes from multiple types to see who offers the best rates. Some of the different types of insurers include:
- Direct insurers: These insurers sell car insurance directly to consumers. They typically offer lower rates than other types of insurers.
- Agents: These insurers sell car insurance through agents. Agents can help you find the best policy for your needs, but they typically charge higher commissions than direct insurers.
- Brokers: These insurers act as middlemen between consumers and insurers. They can help you compare quotes from multiple insurers, but they typically charge higher fees than agents.
- Bundle your insurance policies. If you have multiple insurance policies, such as homeowners insurance or renters insurance, you may be able to save money by bundling them together.
- Get a good driving record. The best way to lower your car insurance rates is to have a good driving record. This means driving safely and avoiding accidents and tickets.
- Increase your deductible. Your deductible is the amount of money you have to pay out-of-pocket before your insurance company will start paying for a claim. By increasing your deductible, you can lower your monthly premiums.
- Get a car with a low value. The type of car you drive can also affect your car insurance rates. Cars with a lower value typically have lower insurance rates.
- Take a defensive driving course. Taking a defensive driving course can help you improve your driving skills and lower your car insurance rates.
By following these tips, you can get the best car insurance rates while in your early 20s.
Insurance rates for 20-year-old drivers are higher than for older drivers because younger drivers are more likely to get into accidents. The average monthly rate for a 20-year-old driver is $373.
Other factors that affect insurance rates include:
- Driving record: Drivers with fewer infractions pay lower rates.
- Gender: Men typically pay more for insurance than women.
- Make of vehicle: The safety and value of your vehicle can affect your rates.
- Location: Insurance is more expensive in more populated areas.
Your insurance rates will vary depending on how these factors apply to you.
How to Save Money on Your Car Insurance as a Young Adult Driver?
Although you will likely pay more for car insurance in your 20s, there are ways to save money.
- Shop around. Compare rates from different insurance companies to find the best deal.
- Take advantage of discounts. Many insurance companies offer discounts to young drivers who meet certain criteria, such as having a good driving record or being a student.
- Take a defensive driving course. This will not only improve your driving skills, but it can also qualify you for a discount on your insurance.
- Bundle your insurance. If you have other types of insurance, such as renters or homeowners insurance, bundling them with your car insurance can save you money.
In addition to discounts, there are other ways to save on car insurance:
- Stay on your parents’ policy.
- Drive a safe car.
- Drive an older car.
- Consider a high deductible plan.
- Keep a clean driving record.
- Maintain a good credit score.
Most of these insurance tips apply to drivers of all ages, not just those in their early 20s. Start using them today!