Prices vary from company to company, so it's worth comparing prices. Get at least three price quotes. You can call companies directly or access information on the Internet. Your state's insurance department can also provide price comparisons for major insurers.
As a result, simply comparing prices could save a teen driver hundreds of dollars a year on car insurance. The most common reasons for high car insurance costs include your driving history, age, coverage options, where you live, the car you drive, your credit history, or not taking advantage of discounts. Most major insurers offer several discounts designed to help reduce the cost of insuring a teen driver. In general, auto insurance premiums continue to fall every year until age 25, when rates begin to stabilize for the next few decades.
Because your credit history is correlated with your likelihood of filing an insurance claim, insurers in most states consider credit data when setting their rate. In general, people who live in a densely populated city pay more for car insurance because the large number of motorists on the road increases the likelihood of an accident. You can reduce your Geico car insurance costs by taking advantage of Geico discounts, opting for a higher deductible and reducing your coverage, among other things. If you have a low credit score, your car insurance rate may be double or triple that of someone with good credit.
The cost of car insurance generally declines the most between 18 and 19 years of age, when rates drop by approximately 25% on average. In some companies, drivers who have a DUI could see their insurance rates triple and, in some states, they may be required to purchase special insurance or have their insurance canceled. All major insurance companies use a credit-based insurance score to calculate premiums when allowed by law. Considering how expensive car insurance is for young drivers, your teen could save on their premium by limiting the amount of coverage included in their policy.
Below, you can learn more about how to lower your car insurance premiums with WalletHub's eight tips. Record-breaking natural disasters, the increase in phone-related car accidents, high rates of insurance fraud, and the costly repair of car technology have increased costs for insurance companies. The best way to reduce your car insurance premiums is to compare prices between insurers, take advantage of all the discounts you can, and adjust your coverage to fit your budget.