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by Indiana Farm Bureau Insurance

How to lower car insurance premiums for a young driver

Young driver with woman in the passenger's seat being handed the keys for the car


While most young people aim to be safe and responsible drivers, this group historically is carrying a greater risk and that is reflected in their auto insurance premium. Higher car insurance premiums are not just for youthful drivers in Indiana; actuarial data nationwide indicates that young drivers tend to have higher premiums due to increased risk of experiencing a loss.

 

Young people, or their parents who insure them, pay more because their general inexperience makes youthful drivers a higher insurance risk, as they are more likely to make mistakes that cause auto accidents. Auto insurance for teens and young adults can be expensive, but there are ways to lessen the cost of these policies’ premiums. It requires research and usually a conversation with your insurance agent to see what the best discounts are that you may be eligible for.


How much does insurance cost in Indiana?

 

Insurance costs can vary from company to company. Additionally, insurance companies have formulas to best match the premium amount with the risk of future insurance claims--such as the age of the driver. Good news though—the cost of insurance can decrease as drivers age.

 

Factors that affect your car insurance cost

 

Parents must acknowledge that the age and inexperience of a young driver will affect the price of auto premiums, but keep in mind that there are ways to lower the cost of the expensive premiums. 


Age and gender are not the only calculated factors that affect insurance premiums. The make and age of the covered automobile does have an impact on the premium price, too. Learn more about why your insurance premium can change over time.


How can you lower your car insurance premiums?

 

There are various ways to lower car insurance for younger drivers. These can make premiums more affordable.

  1. Good grades may save you money! Indiana Farm Bureau Insurance offers a Top Scholar Discount for youthful drivers who attain at least 2.95 cumulative grade point average (GPA) on a 4.0 scale (or its equivalent) in school.

  2. Increase the deductible. Increasing the deductible on your policy can result in a lower premium on the auto coverage.

  3. Youthful Driver Discounts. Teenagers who show evidence of completing a driver-safety program may be eligible for a decrease in auto premiums, depending on the insurance company. Indiana Farm Bureau Insurance offers a Youthful Driver Discount. Young drivers can go online and fill out the form to see if they qualify for the discount!

  4. Driver Education Discount. Indiana Farm Bureau Insurance offers a discount for drivers up to age 21 who complete a state-approved driver education course.

  5. Bundling saves. At Indiana Farm Bureau Insurance, clients can save by bundling auto and home or renters and auto insurance policies at the company.

  6. More discounts. Talk to an Indiana Farm Bureau Insurance agent to learn more about discounts such as DriveTrend®, Full Payment, Paperless, Multi-car, and more!


The
Insurance Information Institute shares additional tips for parents. “Of course, safety concern is uppermost in most parents' minds but other stressors—like the high cost of insuring your new driver and the financial liability implications of a teen driving mishap— can be reduced with these steps .”

 

Don’t have a policy with Indiana Farm Bureau Insurance?  

 

Indiana Farm Bureau created  Indiana Farm Bureau Insurance in October 1934 to provide better insurance options for farmers. Our company now offers all types of policies, including auto insurance. Our insurance company is represented in all 92 Indiana counties, and there are more than 400 agents ready to serve residents of Indiana.


Not ready to contact an agent? No problem. You can get a quick and easy quote or purchase online.


Your local Indiana Farm Bureau Insurance agents are available to review your current coverages—whether you are with us or not. We are happy to provide a free quote and discuss eligible discounts. You can get affordable auto insurance and exceptional, unmatched customer service with Indiana Farm Bureau Insurance.


It is simple to find a  local Indiana Farm Bureau Insurance agent. Rest assured that a professional will explain insurance options for you and your youthful driver.

 

Our message to anxious parents is simple: relax. Having a child out on the road may be scary, but your auto insurance should be the last thing you worry about. A good working relationship with your Indiana Farm Bureau Insurance agent can make things a lot easier, so that you and the young person in your house will be well protected from the hazards of the road.

 

*The information in this article was compiled from a variety of sources and is intended to provide helpful tips only.