Car insurance for young drivers is most of the times more expensive than the same insurance for older individuals. That’s not fair, but what’s fair in life after all? Insurance companies are here to make a profit, so they make the rules on how much various categories of clients have to pay to get their vehicles insured. Fact is that statistic research has shown that drivers under 25 years of age are a higher risk group of drivers, therefore they are more prone to filing a compensation claim.

From this point on, it’s simple math: if a certain percentage of the customers pay for example an average premium of $1000 per year, the insurance company gathers that much money: $1000 times the number of customers. They have to pay salaries, rent, utilities and claims and still make a profit at the end of the fiscal year. If you’re a client and you’ve been through an accident with total car damage, claims will be much more than the $100 you’ve paid. If 90% of the clients are like you, the insurance company will be in financial trouble.

Of course insurance companies are re-insured, but fact is they want to have as much profit as possible, so if statistics indicate young male drivers as a high risk group, they’ll have to pay more for their car insurance.

Tips for getting cheaper car insurance when under 25

These are a few ideas young drivers could use for getting better insurance rates:

• College students may benefit from cheaper car insurance: some carriers have this special policy to offer discounts to college students, especially to those who pass all their exams on time. Obviously, this shouldn’t be your main reason for going to college but if you want to study, then you should be aware of this advantage that comes with the student status.
• Your parents are older than 25, so get one of them add you on her car insurance policy. This can save you some money, but I suppose you have to share the car with your parent. Anyway, before following this tip, be sure to check with your local insurance companies to see what’s the law saying in your state.
• A good credit history can be a money-saver. There are auto insurance companies which check on their potential customers’ credit score before calculating their premiums. A bad credit score could attract bigger insurance rates, so try to stay out of that as much as you can. Not all auto insurance companies have the same rules.
• Always make sure to find multiple quotes before purchasing insurance for your car. This is very easy to do, as there are lots of websites where you only need to submit your zip code in order to get quotes from carriers that operate in your area of residence. Such services are fast and free of charge, so they are a good point to start from.

If none of the above suits your particular case, then all you can do is be very careful not to get involved in accidents that require filing a compensation claim, and you'll get a bonus for each year without claims. This bonus depends from company to company and it can be as high as 15% of the total annual premiums. Another useful tip, which some of you may disagree with, is to buy a smaller, less powerful car. This decreases your premiums from start and it may place you in another risk group of drivers, with smaller rates.