💰Why car insurance is expensive when you’re young

read time 2 minutes

Hi there,

If you’re a younger driver, you’ve probably noticed something frustrating right away: your car insurance is expensive. Sometimes painfully so.

That’s not because you’re doing anything wrong. It’s because insurance companies have very little data on you. Less driving history means more uncertainty, and in their world, uncertainty gets priced higher.

The good news is you don’t have to just accept it.

There are a few simple ways to keep those costs down, and the biggest one is also the easiest.

Here are some moves that help:

• Keep your grades up and ask about good student discounts
• Build your credit early, even slowly
• Choose a higher deductible if you have an emergency fund
• Drive a safe, reliable car instead of something flashy
• Avoid unnecessary add-ons you don’t actually need
  
  

But the biggest one is this: before you lock into any policy, compare offers across the industry. No single insurance company is cheapest for everyone. One might favor students. Another might reward low mileage. Another might care more about credit than age. If you only get one quote, you’re guessing.

Using an online comparison tool lets you see multiple trusted offers side by side in minutes. Same info. Same coverage. Very different prices. That alone can save you hundreds a year.

Car insurance will get cheaper with time, but only if you’re intentional now. Small decisions early on make a big difference later. Spend a few minutes comparing before you commit. It’s one of the simplest ways to keep more money in your pocket.

Using my affiliate link helps support my team and I to create new content for you every week. Thank you! 

- Milan and Team

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Milan Singh may earn affiliate commissions from the links mentioned. All recommendations and opinions are Milan’s own. This may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers.