Youth has its advantages. But not with car insurance.
Why? You lack driving experience (duh?). But with that comes bad habits like texting or other forms of “distracted driving” and more costly accidents! How much more will you pay? If you are an 18-year-old single male (the top yellow line on the chart below), you could get charged 4 TIMES more than if you were 25 years old. It’s not much better for a single female.
There are four things you can do to minimize these higher costs:
1. If you can, stay on your parents’ policy until you turn 25. Even if you pay the difference in price, it’s likely to be far less than what you’d pay on your own.
2. While you can’t do much about experience, turn off your phone while driving! You will save lives, including your own. If you drive for a few years without an accident or ticket, insurance companies will look upon you with delight and lower rates.
3. Compare policies and prices.
4. Take Uber, public transportation or walk.
Dirty Insurance Secret #3: You Pay Through The Nose When You’re Under 25 was originally published in Uncle Jon’s Insurance Hacker Tips on Medium, where people are continuing the conversation by highlighting and responding to this story.