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If you’re between the ages of 16 and 24—or you have children who are—and it feels like you’re paying a fortune for auto insurance, you’re not alone. Maintaining an active, affordable policy is tough for virtually everyone in this age group. Because they have limited driving experience, insurers consider them much riskier to cover than other demographics. As such, they end up paying significantly higher premiums. Here’s what all new drivers—or their parents—should know about insuring those under 25. 

Reducing Premiums Before Turning 25

You certainly can’t change your age, but that’s not the only factor that determines auto insurance premiums. The policyholder’s driving record will have a big impact on the cost of coverage, as will the make and model of the vehicle. In other words, it’s possible to find a policy with a reasonable premium if you purchase a car that’s relatively cheap to insure and you avoid racking up traffic infractions. 

Additionally, many insurers offer various discounts for new drivers who meet certain requirements. For example, if your teen maintains a high GPA, completes an approved driving course, or enables a safe driving app on his or her phone when behind the wheel, your family may qualify for a discount. 

Keeping Premiums Down After Turning 25

auto insuranceAs long as a new driver doesn’t cause any collisions or commit a major traffic violation, his or her rates should decrease slightly with every additional year of driving experience. And upon turning 25, the driver will be considered a mature motorist, and the new insurance premiums will reflect as much. 

Just because you’re over 25 doesn’t mean your rates can’t increase, though. If you want to keep them affordable, you must maintain a clean driving record. Certain milestones that many people make between 25 and 30 can also lower auto insurance premiums, including purchasing a second vehicle, getting married, and buying a home. Insurers look favorably upon drivers who have met such milestones because they’re assumed to be relatively stable and therefore less risky to cover. 

For additional savings, ask your insurer about possible discounts. Some companies offer bundling discounts—for example, if your purchase auto, life, and homeowners insurance from them. There are also discounts for using certain apps while you drive, going so many months without filing a claim, and completing a defensive driving course. 

 

If you need affordable auto insurance for a newer driver, turn to MP Davis Insurance Agency. Based in Randleman, NC, and serving the Piedmont Triad area for more than 40 years, this independent agency helps clients find policies tailored to meet their needs. Their knowledgeable insurance agents strive to build a lasting relationship with every one of their clients so they know where to turn when in need of coverage. To request an auto insurance quote for you or your teen driver, reach out online or call (336) 498-7606. 

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