A lot of young people have recently gotten a new car and know nothing about the responsibilities of owning a car. Most kids who start driving do so while still living with their parents. Therefore, they are clueless about the backend of owning a car. Besides cleaning it and maintaining a car, there is also a lot of paperwork that goes into owning and driving a car. One of the biggest expenses for any young driver is that of car insurance.

If you are like me and are paying for your own insurance, then you will know what I am talking about. If you are looking to buy car insurance for yourself then please read carefully. Insurance companies don't have much faith in young drivers. Statistically speaking, drivers under the age of 25 are at a very high risk of getting in accidents, therefore insurance companies charge very high premiums for people in that age group.

If you are in college, then the insurance company will consider you to be more responsible than someone who is not in college and will drop your premium rates a little bit. At the end of the day, it is all about perceived maturity. If you drive for a number of years without an accident then you can expect your premiums to drop.

One other important factor that will affect your insurance premiums is the type of car you drive. If you have recently bought a 10 year old mustang, expect to pay higher rates than your buddy who might have just bought a 10 year old station wagon. Why? Because Mustangs go faster and faster speeds are associated with reckless driving. That is not very responsible so expect to pay higher premium rates.

So what do most young people end up doing to reduce their insurance premiums? Well, you can think about skipping that sports model and staying with a good old reliable Honda. Or, you could get excellent grades in school, call up your insurance provider and their competitors and ask them if they will give you a rate decrease because you are an intelligent person. You could drive carefully and not get into accidents and you could also learn to negotiate.

Call up as many insurance companies as you can and try to get the best rate. Understand exactly what type of insurance you would need. This is important. When I owned a car, it was a cheap used jalopy. I knew that if I got into a serious accident, the cost of fixing my car would overshadow the cost of the actual car so I bought only liability insurance. This insurance would pay for the damage to other cars involved in the accident but not for mine. So that reduced my premiums.

Please do as much reading and research as possible on the various flavors of insurance before you make your decision and remember you can always switch providers if they are giving you a better rate.