Car Insurance Under 25 – Is There an Age Penalty?


Car insurance under 25 years of age can sometimes be more expensive that the same insurance policy for people who are older than 25. In this article we are going to see why and how does it happen this way and what are the most common ways to avoid it.

At first sight, this looks like an age-based discrimination, so many young drivers would think it's unfair and they would probably be right. Nonetheless, insurance companies base their price policies on studies and statistic research, because their final aim is to make a profit and not to help drivers pay less. As getting auto insurance is a personal matter, a person under 25 can not ask her parents to sign the policy instead of her, so she'll have to find other ways of paying less while remaining legal. These are a few tips that can help in finding the best quotes for car insurance, even if you are under 25 years old:

  1. Become a student: going to college will give you more advantages than more career opportunities, as college students can benefit of facilities such as cheaper student loans or preferential car insurance rates. Moreover, additional discounts can be obtained by students who get high grades, so learning can help you save some money
  2. Avoid bad credit: many insurance carriers associate bad credit history with an increased probability of filing claims, as this comes from a research published by the Insurance Institute. Watch your credit score and try to keep it good, in order to avoid paying more for your car insurance.
  3. Ask a parent for help. If your parents are driving, you can have them add you on their car insurance policy, the 25 years of age not being relevant anymore, because your parents are surely older and have already a driving history behind them.

Last but not least, remember to always ask for multiple quotes from different auto insurance companies in your area, because terms and conditions could be different in what getting a car insurance under 25 is concerned. You can obtain these quotes online, in a few minutes, by simply submitting your zip code in order to receive only quotes that are relevant for your location. Such services are free of charge and very easy to use, the only necessary thing being an internet connection, so you can get access to those providers.

Source by Stana Lache