If you’re a driver who’s older than 25, you know it can spell lower insurance rates than when you first hit the road. But until you hit 35, you could still be paying more than older people behind the wheel. This is because insurance companies still see you as an increased risk over those in their forties.
But with so many policies priced differently across competitors, you might find a cheap rate even if you aren’t yet over the proverbial hump.
How can I save on car insurance if I’m under 35?
Insurance for those under 35 can be more expensive than for older drivers, though it won’t be as bad as car insurance for teens. But, there are tips that might still save you money.
Ask for discounts
You could earn savings by paying your bill online, using autopay or bundling up your coverage with one company. Ask for all available discounts to see what you qualify for.
Ensure the safety of your car
Park your car in the garage, rather than on the street, and add an after-market alarm, tracking device or engine immobilizer for lower premiums. Also, restrict who drives your car, preferably limiting drivers to those aged 35 or older.
Choose a sensible ride
If finding the cheapest car insurance is your number one priority, look into buying a smaller, less expensive car. Steer clear of sporty coupes, which tend to have a pricier insurance rate.
Review your coverage
Increasing your deductible can reduce your premium, but make sure it’s not so high that you can’t afford a claim. Also go over your coverage limits and make sure you only keep what you need. If you don’t plan to drive a lot, ask about pay-as-you-go-policies.
Get experience and stay safe
Take a safety class and try and keep a spotless driving record to show your insurance company you’re a safe and low risk driver. You can also prove you aren’t a risky driver by avoiding filing small claims.
Compare car insurance for drivers under 35
How much is car insurance for drivers under 35?
Your exact rate will be based on your driving history, vehicle and level of coverage, among other factors.
To give you an idea of how much you might pay for car insurance, compare sample quotes for drivers living in the state of New York. These rates are for a married driver with good credit wanting great coverage for a newer sedan.
Car insurance quotes for drivers under 35
|State Farm||$2,590||Read review|
Choosing car insurance for under-35 drivers
To find a policy that’s right for you and your budget, understand how to interpret these terms when comparing your options.
- Coverage. Refers to what your particular insurance policy covers — what it provides financial compensation for after an accident or claim.
- Limits. The maximum amount your policy covers in a particular situation. For example, your policy might cover up to $5,000 in accidental damages — but not a penny more, leaving you to cover the rest.
- Exclusions. Conditions under which the insurance company won’t pay out a policy. For example, you might be covered for car theft with an exclusion for unlocked vehicles — meaning your carrier won’t help if your car got stolen after you left it unlocked.
- Premiums. The regular, ongoing amount you pay monthly, quarterly or annually to carry an active policy.
- Fees. Any combination of additional costs you pay on top of your premium, such as administration fees, cancellation fees and support fees.
- Discounts. Common discounts include multipolicy discounts for taking out multiple policies with the same insurer, discounts for buying online and no-claims discounts that build every year you don’t get in an accident.
Tips for choosing a policy
After you’ve narrowed down policies that meet your needs, it’s time to compare their prices. Remember: Your goal is to find the car insurance that’s right for you — which means it might not always be the cheapest.
- Compare multiple quotes. Quotes can help establish a ballpark price range for your insurance needs. If you receive one that’s suspiciously low when compared to the other, make sure it’s not missing something important.
- Read the fine print. Your product disclosure statement includes the terms and conditions of your policy. Know what they mean — and what’s excluded from your coverage.
- Consider insurers’ reputations. Research what others are saying — including how they handle claims and customer support — on review sites and social media.
What kinds of coverage do different cars need?
When you buy your vehicle from a dealer, the car insurance you take out depends on the value of the vehicle and the requirements of the lender. But an effective way to keep the cost of car insurance down is to drive an inexpensive vehicle.
- For young adults driving cheap cars. If you purchase a secondhand vehicle from a dealer and the market value is only a few thousand dollars, you may choose to take out only third-party property insurance or third-party fire and theft.
- For young adults driving expensive cars If your vehicle is a late model with a high market value or a classic or modified car, comprehensive insurance may be worth the additional cost. Plus, many lenders require comprehensive car insurance if you finance your car.
Dos and don’ts for drivers under 35
- Do keep your insurer updated. Call or email when your circumstances change, or it could refuse to pay a future claim.
- Do add responsible drivers. Adding a second responsible driver to your policy might help reduce your premium.
- Do drive safely at all times. A consistently safe driving record supports any no-claim and safe-driver bonuses, potentially decreasing your premiums.
- Don’t lie to your insurer. If you mislead your insurer to get lower premiums, it could cost you dearly in the form of voided insurance when you need it.
- Don’t lie about your car’s primary driver. Nominating anybody other than yourself for better rates is considered deceptive.
- Don’t modify your car without reporting it. Stick with modifications your insurer approves of — a sunroof, say, rather than a spoiler or sports exhaust — to avoid increased premiums. And no illegal modifications. Period.
With age comes wisdom — and often lower insurance rates. But even if you’re an experienced driver, you could pay more than older motorists until you hit age 35.
Steer away from driving the newest cars and find the lowest rates but highest coverage and highest coverage possible for your situation.
Frequently asked questions
Why does car insurance cost more for younger drivers?
Car insurance for this age group can be expensive because insurers consider younger drivers generally less experienced. Statistically young drivers are more likely to be involved in accidents and so more likely to make claims.
But their accidents also tend to be more severe than older drivers’, resulting in more expensive claims. This combination means car insurance companies will drive up prices for all clients.
How will my insurance cover a new sound system I recently installed?
Stereo equipment is considered a nonstandard accessory. To avoid a refusal of coverage later, report all modifications to your insurer when you make them to avoid your claim being rejected later on.
How well will third-party insurance cover me if my vehicle isnt worth much?
Generally, it depends on how necessary it is for you to have a car, and whether you can afford to repair or replace the car yourself after an accident.