Young drivers can get cheaper car insurance by shopping around, using student and safe-driving discounts, staying on a parent’s policy, and choosing affordable coverage. Call Insure on the Spot at 773-202-5060 or get a free quote online to compare prices in minutes.
Even though teen and new drivers typically pay more for car insurance, there are many ways to lower your premiums. Choosing a modest vehicle, avoiding traffic violations, and asking for every discount you qualify for can make a big difference.
Why Is Car Insurance So Expensive for Young Drivers?
Insurance companies charge higher rates to young drivers because they pose more risk behind the wheel. Here’s why:
- Inexperience: Teens and young adults are statistically more likely to be in accidents.
- Higher claim rates: Crash rates for drivers under 20 are almost 4x higher than those over 25.
- Risky behavior: Speeding, distracted driving, and nighttime driving are more common among young drivers.
- Gender matters: Young men often pay more than young women due to risk data.
- Car choice and coverage: New, fast, or luxury cars cost more to insure, and full coverage significantly increases premiums.
For example, an 18-year-old might pay over $5,000 per year for full coverage, while a 30-year-old with the same car and record might pay under $2,000.
How Can a Young Driver Lower Car Insurance Costs?
Lowering insurance costs as a young driver is possible with a few smart steps:
1. Get Multiple Quotes
Insurance rates vary widely. Use online tools or an independent agency like Insure on the Spot to compare policies from multiple companies.
2. Use Discounts
Look for these common discounts:
- Good student discount: Up to 25% off for a B average or better.
- Driver’s ed / defensive driving: Get rewarded for taking a course.
- Safe driver programs: Usage-based apps can lower your rate based on real driving habits.
- Distant student: Live away from home and leave your car? That may qualify for a discount.
- Bundling: Add renters or other insurance policies for a multi-policy discount.
3. Stay on a Family Policy
Adding a teen driver to a parent’s plan is usually much cheaper than getting a separate policy.
4. Pick the Right Car
Choose a used, safe, low-horsepower car to keep insurance costs down. Avoid sports or luxury vehicles.
5. Opt for the Right Coverage
- Liability-only coverage is cheaper and may be sufficient if your car is older or not financed.
- Full coverage (collision + comprehensive) is required if you have a loan or lease.
- Choose higher deductibles to reduce your monthly rate, if you can afford the out-of-pocket risk.
Do Young Drivers Need Full Coverage?
Not always. You need full coverage if:
- You have a car loan or lease (lender requirement).
- You drive a newer or valuable car that would be expensive to repair or replace.
- You live in an area with high theft, flooding, or vandalism risk.
Otherwise, many young drivers opt for liability-only insurance to save money. It’s often enough for older vehicles worth less than $5,000.
Tip: A general rule is if full coverage costs more than 10% of your car’s value each year, it may not be worth it.
What Coverage Do Young Drivers Legally Need in Illinois?
In Illinois, the legal minimum coverage is:
- $25,000 for bodily injury per person
- $50,000 per accident
- $20,000 for property damage
You must also carry uninsured motorist coverage at the same limits. These minimums keep you legal, but higher limits offer better protection if you cause a serious crash.
How Should New Drivers Compare Car Insurance Quotes?
Follow these steps:
- Gather info: Age, vehicle details, license status, driving history, and address.
- Decide coverage needs: Liability only or full coverage? Choose limits and deductibles.
- Shop around: Use comparison tools or call multiple insurers.
- Check for discounts: Be sure quotes include all you qualify for.
- Read the fine print: Look for exclusions, claim handling policies, and required documentation.
- Compare apples-to-apples: Make sure each quote offers the same coverage levels.
- Re-shop each year: Rates can drop as you age and gain experience.
What Happens If a Young Driver Gets a Ticket or an Accident?
Even one ticket can cause a major spike in premiums. For example:
- A single speeding ticket could raise your rate by 20–30%.
- An at-fault accident can double your premium.
- DUI or reckless driving may require SR-22 insurance and make you “high-risk.”
Stay violation-free to avoid these extra costs and keep your insurance record clean.
FAQs About Teen and New Driver Insurance
Q: How can I get cheaper car insurance as a teen?
A: Drive safely, stay on a parent’s policy, take a driving course, and maintain good grades. Choose a low-risk vehicle and shop around for quotes with discounts.
Q: Is it cheaper for teens to be on their parents’ policy?
A: Yes, significantly. Most families save thousands per year by bundling drivers and vehicles under one plan.
Q: Can a teen get insurance alone?
A: Teens under 18 usually need a parent or guardian to co-sign. At 18, they can get their own policy, but it’s more expensive.
Q: Do I need insurance with a learner’s permit?
A: Yes. You must be covered under someone’s policy (usually a parent’s) while practicing. Once licensed, you’ll need to be added officially or get your own policy.
Q: What age do car insurance rates start to drop?
A: Rates decrease gradually each year you stay accident-free. The biggest savings typically begin around age 25.
Q: What if I need an SR-22 as a young driver?
A: You’ll need a high-risk insurance policy with the SR-22 form filed by your insurer. Insure on the Spot specializes in helping young drivers meet SR-22 requirements affordably.
Get a Quote in Minutes
Insure on the Spot Helps Young Drivers Save
Don’t overpay just because you’re a new driver. Call 773-202-5060 or get a free quote online today. We compare rates across multiple insurers and apply all available discounts to help you find the cheapest legal coverage.