The Avg. Cost of Car Insurance for 20 Year Old [& Practical Ways to Bring the Rate Down]
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If you drive a car, then you need insurance for it. The insurance companies charge different amounts for insurance based on the perceived level of risk that a person represents. There are many risk factors, including the type of car, the experience level of the driver, and the amount of mileage that the person typically does per year.
Sadly, young drivers of 20 years old are usually seen as a much higher risk than older drivers because they have less experience on the road.
They also typically tend to prefer flashier cars, which can also add to the perceived level of risk.
If you’re looking for ways to save money on your car insurance, then you’ll be glad to know that there are things that you can do to reduce the amount that you pay and to make you a more appealing customer to certain companies.
Here are a few tips that always work.
Always Be Truthful
Priority one when you’re looking for quotes is to tell the truth about your circumstances. You might think that changing a few details is harmless but if you get caught out then you will a) not be able to claim on that policy, and b) could find it very hard to get insurance in the future. It’s not worth the risk.
There are some things that you may be able to ‘tweak’, such as how you describe your job, but lying or omitting information will land you in hot water. Put factual information into any quote tool that you use, and see which companies give you the best quote.
Young Drivers Will Pay More
The odds are stacked against young drivers because statistically, they are more likely to be dangerous. For example, they are three times more likely to have speeding tickets than older drivers.
Men are statistically higher risk than women as well with more than two times the number of men dying each year in car accidents, and with men being more likely to be involved in alcohol-related car accidents (32% of male deaths involved BACs over 0.08%, while only 20% of women’s did), and more male deaths involving speeding too.
Male or female, who is better behind the wheel? Here’s the discussion.
How Much Is Car Insurance for A 20 Year Old?
Insurance can vary massively from state to state. Wisconsin’s average insurance cost is $664, while people living in Florida may pay almost double that. Idaho is another low-cost state, with insurance at around $573, while motorists in Michigan or New York can expect to pay over $1200.
Click here to get cheap (irrespective of male or female) quotes and compare the average rate for a 20 year old in the USA.
Insurance Options to Keep Costs Down
The insurance companies want to reward good drivers. After all, the best possible outcome for an insurance company is that you pay your insurance and they don’t ever have to pay out. The best way to reduce the amount that your car insurance cost is to prove that you are a responsible driver.
Remember the following:
- You can take no claims bonuses with you, so shop around when you renew your policy
- The type of car that you own matters
- Having a long, clean record will reduce what you pay
- Having a high excess will reduce your premiums
So, as soon as you are able to drive at 20, take out insurance. In the long run, if you have insurance for a small, low powered runabout for a couple of years and then change to a bigger, better car, you will find that your premium is cheaper because of that unblemished history from your beginner driving days. Set the excess relatively high, and try not to claim on the insurance at all.
Usage Based Insurance
One option that many people don’t think of is usage-based car insurance. If you don’t drive much, then you’re not as likely to get in a crash, so it makes sense to pay less. You can get insurance that is based on the mileage that you do, and if you usually use public transport to get to work, and perhaps only drive a little at weekends, a usage-based insurance policy could suit you.
Telematics and Insurance
Another option that is getting some attention is telematics. If you are comfortable sharing data with your insurance company then you could save a lot of money. You will be given a “black box” that will monitor your driving habits. It will look at where you drive, your mileage, your average speed, and in some cases things like sudden stops or speed changes, and will build a profile of how safe a driver you are.
Do you consider yourself a competent driver?
If you are indeed a safe driver, then you could save a lot of money because the insurance company will be able to classify you based on how you actually drive, rather than assuming the worst and treating you like an unknown young first time driver.
If you’re still in college, then consider dealing with a student company that offers discounts based on academic performance.
There are some providers that specialize in dealing with high-risk drivers. If you’ve been involved in an accident in the past or you’re classed as high risk because of bad judgment when you were a little younger than twenty, then this could be a way of rebuilding your reputation with the insurance companies.
Did you know that?
The non-standard auto insurance industry is big business, generating $35 billion in revenue a year. There are almost 9,000 insurance companies across all sectors (including specialist industry companies for farming, travel, etc), so there’s no shortage of companies to choose from, and no matter what your history and when or how you drive you should be able to find a company that will help you.
It Pays to Shop Around for 20-Year-Old Young Drivers
Don’t just assume that the insurance company your parents or friends are with will be the best for your circumstances. That isn’t always the case.
It can be tempting to stick with the same insurance company for your home contents, travel, and car insurance but that could also lead to over-paying too. It pays to shop around.
Try this price comparison service to get a few different quotes and see what offers the best deal for your particular situation. You could get a surprise and slash your bills significantly compared to what your current provider is offering.