Whether you feel it is fair or not, younger people will most often have to pay extra for car insurance because of their age. You might think this boarders on the edge of discrimination, but the higher rates that insurance companies charge to younger people are based on statistics that show that younger people are much more likely to have car accidents than older people.
The reason is simple; one of the primary ways we we learn in life is by making mistakes. In the case of driving, one mistake we often make, before we realize the seriousness of the error, is causing a car accident. Before we have our first accident we simply don’t realize how traumatic and unnecessarily inconvenient a car accident really is.
It isn’t unusual that we are much more careful drivers after we’ve had our first car accident. A first accident makes a young driver reassess why it is important that road rules are followed at all times and makes them realize that an accident actually can happen to them.
Unfortunately, if you have an accident at all, your insurance rates will be increased substantially because you will loose the very valuable “good drivers discount”, so the best advice to young drivers is to make it a goal to never have a car accident!
One of the few ways that a student can lower their car insurance is to take advantage of a “good student discount”. Often insurance companies will require a student to maintain a grade point average of 3.0 or higher, but this can vary from company to company, so be sure to inquire what the requirements are before you decide on an insurance provider.