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Your graduated, probationary or intermediate license means you’ve updated your learner’s permit and you’re one step closer to a full license. But it doesn’t give you a degree in safe driving. You’ll probably experience higher insurance rates until you hit your 20s for age-related reasons alone. You can look for ways to save now and set yourself up for future savings while you’re at it.
With a graduated license, you have more driving freedom. However, you still might face some requirements, like driving curfews and limited passengers. You also need insurance coverage to stay legal as you drive solo on the roads. However, consider several factors when getting insured:
Having a graduated license can mean lower insurance rates than a learning driver. However, the factor that weighs most toward your premium is your personal age or license age, which shows your length of experience.
In general, teens pay the highest premiums because statistics show they’re more likely to get into an accident. Average teen rates can go above $6,000 per year for a standalone policy but are lowered to $3,858 once you hit 18.
By comparison, the average car insurance rate is around $1,300 per year. So the longer you have your license, the more driving experience you have and the lower your insurance rates.
Since there are restrictions on your graduated license while you’re still gaining experience, accidents are reduced. In fact, since the graduated license program was put in place, the Insurance Institute for Highway Safety reported a 68% reduction in fatal car accidents of 16-year-old drivers over 14 years. A lower amount of accidents and claims results in a lower premium for you, your family and drivers overall.
Driving on your own for the first time doesn’t disqualify you from insurance savings. You can lower your premium if you:
You’ll need enough coverage to keep you and your car well protected. Consider several coverage types to ride along with you:
Amber received her graduated license when she turned 17 and is planning to go to college next year. By adding herself to her parents’ policy, her rate is $4,100 per year.
However, Amber received a good student and safety course discount, which lowered that rate by 20%. When Amber goes away for college and leaves her car at home, the rate will decrease by another 35%. The final rate after all discounts will be $2,132 per year.
With newfound freedom comes driving fun and responsibilities. Those responsibilities may affect your present and future car insurance rates:
Your solo driving could mean higher insurance rates because of your age. However, you can lower towering costs by sharing a policy with family members, getting student discounts and comparing providers for the best coverage.
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