I’m 18 and I am shopping for car insurance. I am quite frustrated with the high rate quotes that auto insurance companies are quoting for me. Why is this so?

Paul

Los Angeles, CA

You should not be surprised that car insurance for teenagers is more expensive that you have thought. Car insurance is expensive because statistics reveal that young drivers are involved in more cases of car collisions and damages. Car insurance companies base their rates on this statistic, which makes it hard for you to get cheap car insurance.

Likewise, young drivers like you do not have the years of driving to speak of. Because you may have started driving for a maximum of 2 years, your driving history is too short. You are still an unproven driver. Car insurance companies will regard you as a risky driver, thus you will be given expensive car insurance for teenagers.

But fret not. You can still lower your charges. First, you must enroll in a defensive driving course. Take one with a company that is recognized by your insurer. You should also try to do good in school, since students who have high grades in school are considered responsible and thus low risk drivers by car insurance companies.
Ask for discounts, you never know what you might be able to get and how much you can save by asking. Some popular discounts can be given for:

1. Military personnel

2. Good grade students

3. Union membership and bank member affiliations

4. Safe drivers with no claims in last 7 years

5. Defensive driving school attendance

6. Clean credit history – used by many carriers to determine payment risk