Car Insurance Discounts for Young Adults in 2023
When you leave your teen years behind and become a young adult, you will lose some discounts on your car insurance. You won’t be able to get that student discount for new drivers or save money by getting good grades.
The discounts you get as a covered driver on your parents’ multi-car policy won’t help either. Some companies give college students discounts for being good students, but that discount will stop once you graduate.
There are, however, a lot of discounts on auto insurance that young drivers may be able to get. A multi-policy discount is one of the biggest ones you might be able to get. Most insurance companies will give you a big discount if you get your renters or homeowners insurance from the same company you use for your car insurance.
You might be able to get a discount if you combine your policies with those of your spouse or domestic partner. But you should think about whether their driving record, credit score, or the way their car drives will make your rates go up.
College graduates should check with their school’s alumni office to see if they have any connections with insurance companies. As a perk of being a member, many alumni groups offer discounts to people with the same interests.
An affinity discount is when a car insurance company gives discounts to drivers who are members, employees, or customers of a group. Young drivers may be eligible for discounts like those given to people who belong to auto clubs (like AAA), credit unions, employers, or the military. Some insurance companies offer discounts to people who work in certain jobs, such as teachers, nurses, and first responders.
letting vehicles be tracked
More and more insurance companies are giving discounts to people who agree to have tracking and driver behavior monitoring devices put in their cars. Young drivers who don’t spend a lot of time driving can benefit from usage-based premiums,
and the trackers can also keep track of hard braking, quick acceleration, and the number of times advanced safety features kick in. Tracking and pay-as-you-drive programs are most helpful for young adults who drive safely and don’t put a lot of miles on their cars each year.
How young drivers can save money on car insurance
Not only can young drivers save money on car insurance by getting discounts, but there are other ways to do so as well. Important things to do right away include buying the right car, picking the right coverages, and setting the right deductibles.
Keeping a claim-free record with no accidents where you were at fault, keeping an eye on your credit score, and being a good driver by not doing things like speeding will help keep your car insurance low.
How to Choose a Car
Different cars have different rates for car insurance. Insurance costs more for high-performance cars, luxury cars that are expensive to fix, and cars that get stolen a lot. You can avoid buying a car that will cost you too much to insure by talking to an insurance agent or getting a quote online before you buy.
Choosing the Right Insurance
Different young drivers have different insurance needs. In our guide to figuring out how much car insurance you need, we explain the different types of coverage and how to figure out how much coverage you need. It’s important to remember that different states have different requirements for how much and what kind of car insurance you need.
Most lenders and leasing companies do the same thing, so they can be sure that your car, which is the collateral for the loan, is safe. Remember that the minimum coverages you should have are what the state and lender require. In some situations, you’ll want more coverage than just the minimum, even if it costs more.
How to Choose a Deductible
It might seem like a good idea to have a very low deductible you have to pay in case of an accident, but you need to weigh the cost of the policy against the price you have to pay for a low deductible. Most of the time, you should choose the highest deductible you can afford and that your lender and state will let you have.
Your deductible shouldn’t be more than how much money you have saved up in case of an emergency. If you only have $500 in the bank, saving money for a $1,000 deductible won’t help you at all.
Keep your driving record clean.
A high rate of accidents where the driver is at fault is one of the main reasons why auto insurance rates for new drivers are so high. If you were a new driver and then a teen driver with a clean record, your rates should go down a lot when you become a young adult. If you keep your driving record clean, you can keep the lower rates you’ve earned.
Some insurance companies let you off the hook for your first accident that you caused, but not all of them do. Read the fine print of any policy you’re thinking about buying to find out exactly what the “accident forgiveness clause” means to that insurance company.