Imagine this: You’re 19, you just got your license and you can’t wait to hit the road. But there’s one big obstacle in your way—car insurance. If you’ve already started shopping for quotes you’re probably feeling a little overwhelmed by the prices. You’re not alone. In this post we’ll break down why car insurance is so expensive for 19 year olds and what you can do to lower it. Buckle up, we’re about to get into car insurance.
Problem: High Cost of Car Insurance for 19-Year-Olds
Why Are Car Insurance Rates So High for Young Drivers?
Car insurance is expensive for teenagers and young adults and it’s all about risk. Young drivers are high risk in the eyes of insurance companies for several reasons.
Higher Accident Rates
Young drivers, especially 16-19 year olds, have the highest accident rate of any age group. According to the Insurance Institute for Highway Safety (IIHS) teen drivers are 4 times more likely to be in a crash than drivers 20+. That’s a big reason why insurance is so expensive for young drivers.
Lack of Experience
You get better with practice. At 19 you’re still a newbie on the road. Newbies make mistakes and mistakes cost insurance companies.
Limited Driving History
You’ve only had a few years of driving so there’s not much history for the insurance companies to go on. That means uncertainty and they hedge against that uncertainty by charging more.
Agitation: Feeling the Pinch
Sticker Shock
Picture this: You found the perfect car in your price range. You’re ready to buy and then you get the insurance quote. It’s more than you expected—way more. That’s what many 19 year olds experience. Insurance can be as much, if not more, than the monthly car payment itself. That sticker shock can be discouraging and make you wonder if you can even afford to drive at all.
Financial Strain
For many of us, high insurance premiums mean we have to sacrifice something. Whether it’s saving for college, buying the essentials or just having some extra cash, car insurance is a big expense when you’re just starting to get your financial freedom.
Real-World Case Study
Here’s an example. A recent study by The Zebra, an insurance comparison site, found that for a 19 year old the average annual premium is $3,560. That’s way higher than the national average of $1,548.
Here’s a breakdown of average costs by state:
- California: $4,300
- Texas: $3,800
- Florida: $4,200
- New York: $4,500
As you can see, these costs can vary widely depending on where you live, but they all have one thing in common—they’re expensive!
Solution: How to Lower Your Car Insurance Costs
Shop Around for Quotes
Shop around. Insurance companies use different math to calculate premiums so get multiple quotes. You’ll be amazed how much difference there is.
Take Advantage of Discounts
Many insurance companies offer discounts that can help lower your premium. Here are a few you might be eligible for:
- Good Student Discount: If you get a B or better you can get up to 25% off.
- Defensive Driving Course: Being a safer driver and taking a defensive driving course can also get you a discount.
- Multi-Policy Discount: If your parents have a home or renters policy you can get a better rate if you bundle it with your car insurance.
Consider a Higher Deductible
Going up on the deductible will lower your monthly payment. Just make sure you can pay the deductible if you have to file a claim. It’s a roll of the dice but if you’re a good driver it’ll pay off in the long run.
Drive a Safe Car
Your car type can affect your insurance premium. Cars with 5 star safety and cheaper to repair cost less to insure. Avoid high performance cars that will tempt you to speed and drive crazy.
Maintain a Clean Driving Record
I know this is obvious but worth saying. Speeding tickets, accidents and other infractions will increase your rates fast. Drive smart and keep your rates low.
Understanding Insurance Premiums: Breaking Down the Costs
Factors That Influence Your Premium
Here’s what affects your premium. So you can see why and how to save.
Location
Where you live matters a lot in how much you’ll pay for car insurance. Urban areas with high traffic and accident rates cost more. For example a 19 year old in New York City will pay more than a 19 year old in Iowa.
Vehicle Type
The make and model of your car too affects your insurance rate. High end sports cars and luxury cars cost more to insure because they are more expensive to repair and more attractive to thieves. A used sedan with high safety rating will be cheaper to insure.
Driving Record
Your record is the biggest factor in your premium. A clean record will keep your rates low, a bad record will increase them.
Credit Score
In most states your credit score affects your car insurance. Insurers think drivers with higher credit scores file less claims. So a good credit score can get you cheaper rates.
Case Study: Comparative Analysis
Let’s look at two 19-year-old drivers—Emma and Jake. Emma lives in Texas and drives a 2015 Honda Civic, Jake lives in California and drives a 2020 BMW 3 Series.
- Emma’s Annual Premium: $3,200
- Jake’s Annual Premium: $5,000
Even though they’re the same age, their premiums are worlds apart because of the car they drive and where they live. Emma’s older car and Texas residency get her a lower premium than Jake’s newer car and California address.
The Future of Car Insurance for Young Drivers
Telematics and Usage-Based Insurance
One of the coolest things about car insurance is telematics and usage based insurance. These programs use devices or apps to track your driving and adjust your premiums based on how well you drive.
How It Works
Telematics devices track things like speed, braking and mileage. If you’re a good driver you can save big. For example State Farm’s Drive Safe & Save program says you can save up to 30% based on your driving.
Autonomous Vehicles
Down the road autonomous vehicles could change the face of car insurance. Human error is responsible for most accidents so autonomous vehicles could reduce the number of accidents and lower insurance costs overall. But this technology is still in development and widespread adoption is years away.
Conclusion
Car insurance for a 19 year old is expensive but knowing why and how to get discounts can make it more affordable. By shopping around, getting discounts and practicing safe driving you can lower your premiums and save. It may seem high now but remember a clean driving record will pay off in the long run with lower rates. So stay safe and enjoy!
FAQs
1. How do I get cheapest car insurance as a 19 year old?
Compare quotes from multiple providers, take advantage of good student and defensive driving discounts and get added to a parents policy.
2. What type of car is cheapest to insure for a 19 year old?
Cars with high safety ratings such as sedans and compact cars with anti-lock brakes and airbags are cheapest to insure for young drivers.
3. Can I get insurance with a bad driving record as a 19 year old?
Yes but it will be more expensive. To mitigate this young drivers with a bad record should shop around for the best rates and take defensive driving courses to improve their record over time.
4. Should a 19 year old have their own policy or be added to a parents policy?
It depends on the individual circumstances but being added to a parents policy is generally cheaper. But compare both to see what’s best.
5. How much will a defensive driving course save me as a 19 year old?
Completing a defensive driving course can reduce premiums by up to 10% to 15%, depending on the insurance provider and state regulations.