Only a few states ban using gender as a determining factor for insurance costs, so most countries allow companies to offer higher premiums for male drivers than female drivers.
Considering that premiums are also higher for younger drivers, it can be difficult to find car insurance for males under 25. Fortunately, some strategies can help reduce insurance costs for young male drivers.
Understanding Gender and Age as Insurance Factors
Insurance companies have a list of factors that are considered when they determine a driver`s premium costs.
Age and gender are just two of these factors. Some states, including California, Maine, Michigan, North Carolina, and Pennsylvania, ban gender-based insurance premiums.
Age is a pretty large factor when it comes to insurance costs. It`s common knowledge that teenagers pay some pretty high premiums at the beginning of their driving lives.
This is because of their inexperience, and insurance providers consider them to potentially be more reckless. As drivers get older, however, their premiums will begin to lower.
Male teen drivers especially will pay higher insurance premiums than female teen drivers. They are considered more reckless and likely to file claims than female drivers.
Shopping Around for Insurance to Get the Best Rates
In general, it`s recommended to shop around for insurance before settling on a company. Each insurance provider has different premium costs, discounts, and policies. Shopping around isn`t only for when drivers first purchase a policy.
Policies and rates can change every year, so drivers should also consider shopping for a new insurer if they notice their rates begin to rise. State Farm is often considered a great option for young drivers, as they have multiple discount options for young drivers, including driver training discounts and more.
In some cases, young drivers aged 20-25 can still stay on their parent`s insurance policy. Whether this is the best idea depends on a few factors, including:
- Credit score
- Driving record
- Gender
- Location
This means young male drivers can benefit from staying on their parent`s policy for as long as possible.
Getting Insurer Discounts for Young Drivers
Most car insurance providers can provide young drivers with many different discounts that can help them lower that high premium. There are good student discounts, defensive driving course discounts, and multi-policy discounts, just to name a few.
Defensive driving courses will also teach young drivers essential strategies for safe driving, which will lower their policy over time as they begin to drive safely.
Young drivers who stay on their parent`s policy can benefit from a student away-from-home discount. This discount would apply to a student attending a school at least 100 miles away who doesn`t have access to a vehicle.
Usage-Based Insurance May Be Best If You Drive Safely
Usage-based insurance is a good option for safe drivers or drivers who drive less than 11,500 miles per year. It will still factor in location and age, but safe driving will also be considered.
The insurer will provide drivers with a plug-in device, or drivers can use an app so that the company can track the driver`s habits. It`s important to keep in mind that with usage-based insurance, there will be penalties if you are braking hard or driving over the speed limit.
Consider Pay-Per-Mile Insurance if You Drive Less
Some people don`t drive as often as others, so having a traditional insurance policy may be too costly. Pay-per-mile insurance is for those who don`t drive very often. The miles driven are also calculated by a plug-in device or app.
It works because the cost of the policy depends on how many miles are driven.
Drivers will pay two rates: a monthly base rate that does not change and a monthly mileage rate that can change. The mileage rate will change depending on how many miles the policyholder drives.
Other Tips for Saving on Car Insurance
If you are an older vehicle, having collision and comprehensive coverage on your vehicle may not be necessary and a could be a waste of money.
The typical rule is to remove these coverages if your car`s value is less than $4,000. If your car`s value is worth more than that, but you`d still like to save, raising your deductible will lower your premium.
