Getting car insurance can be stressful, especially for younger drivers. As you get older and establish a safe driving history, your insurance rates will go down. They’ll be relatively consistent from year to year, with spikes only happening when you buy a new car or when you when you pick up a number of traffic violations. What happens for an 18-year old male who tries to find an insurance policy? What is the cheapest rate he can expect? It will depend on a number of factors, including where that young man lives, what he drives and what sort of driving history he has. Generally speaking, a person in this position can expect to pay around $2,000 per year.
Discounts for good grades and driver’s education
Some insurance companies will provide discounts for young people who meet certain criteria. For instance, many insurance providers gave out discounts for high school students who could prove they earned a “B” average or higher. Others will award discounts for students who complete a driver’s education course. Young men seeking insurance should make sure they take advantage of every known opportunity to reduce their rates through these discount programs.
Driving history matters
If you have a clean driving history, you can expect lower rates. This is true for high school seniors just as it is for senior citizens. While rates for an 18-year old male will still be higher than rates for older drivers, if you have a couple years of driving without citations or accidents, your rates will be lower. Focus on safety and compliance during your first few years so that you can get the best rate possible.
Location and car type influence outcomes
Where you live and what you drive will dictate your insurance costs in a major way. If you’re in a big city where accidents and break-ins happen more often, your rates will be higher. If you happen to drive a very nice, new car, you’ll pay more. While the bulk of risk in young driver insurance comes from the potential liability of injuring another person in a crash, if your vehicle has a lower value, your risk profile will be lower to the insurance company.
The bottom line
It is difficult to give out a bottom line that every person can rely on. Because you haven’t yet hit the magic age of 25 when insurance rates go down, expect to pay more. You should expect a six-month premium price of somewhere in the $1,000 neighborhood. As you get older, that number will come down closer to $600. For the time being, you will need to pay more money because insurance companies know that young men wreck cars more often.