Under-25 drivers get higher rates than any other age group. Even in this age bracket, a 23-year old driver will pay much less than a 17 year old all other things being equal.

This means that you’ll help keep your rates down if you do NOT have a teen driver on your policy. You’ll be made to pay very high rates if you do otherwise. Your teen driver should have his/her own policy. This will be made possible if you sign an exclusion form.

It’s a fair price for them to pay to enjoy the adult privilege of driving. This act will save you more than money as your teen driver will happily listen when suggestions are made on things that will bring down the high rates they pay. The full implication of this is that your teen will be a lot safer as they’d do their best to avoid inflating their rates.

1. We all know that no age bracket pays as much for auto insurance as those who are below 25 years of age. If you belong to this age range you can get cheaper rates if you keep getting good grades at school.

You need to have a grade point not lower than B to have a good student discount. This will shave off up to 5 percent from your rate once you meet eligibility requirements. Experience has proven to insurance carriers that what makes a student keep getting good grades is a level of responsibility which is also carried while driving. Reckless students are not likely to maintain excellent grades.

2. You’ll get a No Claims bonus or discount if you do not make any claims for about four years. Those who understand how to take advantage of this often handle very minor repairs and fixes and so easily become eligible for this discount. Handling little fixes on your own will help you save more as you’ll get a big discount.

3. Using your parents’ car insurance policy is a different option for you an under 25. The fact that you’re of driving age means that your parents belong to a better risk age bracket.

You have to bear in mind, though, that the car must be registered in their name and you must be living with them if you want to use this option. If you don’t like the idea of giving the car’s ownership to them and other stuff that may come with it, then you will have to forget this alternative.

4. Take part in a defensive driving class. Apart from the fact that this will make you a better driver, it will show your insurer that you’re ready to change for the better.

5. The most vital route to massive savings in auto insurance is comparison shopping — Provided that you do it correctly. You can get quotes that will have a difference in excess of $1,000. You could quickly save so much by just picking the lowest quote. That should be the case if you’re simply after the lowest price.

Nevertheless, if you want the best value to price ratio then you would have to check the details of the cheapest offers. Different insurers may have slight differences for similar policies. It’s a good idea to ask the agent what’s part of the deal and what’s not.