We all try to save money whenever we can. We cut back on buying clothes, snacks, etc., we drive less to save gas, and we turn down events. For adults with a full time income, affording things like car insurance isn't usually too big of a deal.

As a teenager or other young person, having money to spend freely is less likely. High school and college students usually work part time, if that, and have trouble paying for the things they need. If they can get help from their parents, that can really help a lot, but many young students aren't that fortunate.

As young adults move forward in life, they finish school and join the work force. Often these jobs are entry level and low paying. If they want to move out on their own, that means continuing on a tight budget. Living on a tight budget is not the easiest thing to do especially when you have friends who are tempting you to spend money.

Car Insurance

Unless you don't need a car to drive around, you are most likely a driver. As a young driver on a budget, saving money is of upmost importance. The problem is that car insurance for young drivers tends to be higher than for more experienced drivers. At first thought, it seems twisted, but if you look into the reasoning behind it, it makes sense.

How do car insurance companies come up with premiums? How do they know how to charge you? If you are an experienced driver, you have been driving on the road for a while. You may have had a few accidents or traffic violations, you may have had a ton, or you may have had none.

Companies rate you on your driving. If you have been in many accidents that you caused, they look at you as a high risk. If you caused accidents in the past, it is likely that you will cause them in the future which will cost them money. They want to make up for that by charging you more. Traffic violations and tickets will also raise premiums because they raise risk as well.

Young Driver Car Insurance Statistically Costs More

The thing about young drivers is that they haven't been on the road for very long and they have not built up a reputation. They have had less time to prove to their insurance company that they won't cause accidents, or even that they will for that matter.

In order to make up for this, companies use statistics. They look at who you are and assume you will be a similar driver to most of the drivers like you. Young drivers have gotten into more accidents than older drivers which means they will be charged more. The same goes with gender. Male drivers statistically get into more accident and are therefore charged higher premiums until they are able to prove that they are a safe driver.

Does this sound fair? Most people think not, but ultimately, the insurance companies don't want to lose money. If they think you're going to cost them a lot, their going to charge you more. Whether it is fair or not, that is how it is. The best way to deal with it is to find ways to reduce your premiums.

How to Lower your Premiums

The first step you need to take is to shop around for a good insurance company as you shop for young driver car insurance. Keep several things in mind while you shop. Don't just look for the cheapest because this will often be inadequate coverage. You need to also look for the coverage you need at an affordable price.

Get a free car insurance quote. There are several places to get multiple quotes from different companies. This is a great way to compare rates. Once you have those rates, narrow down your results and look into them further. If you can, speak with an agent to see what else they offer and to see if you like the customer service.

Second, set your deductible as high as possible. The deductible is what you will pay if you end up in an accident. You pay the first X amount of dollars. For example, if you get into an accident and repairs cost $2,000, if your deductible is $500, you have to pay the first $500 and your insurance company takes care of the rest.

If you set a higher deductible, the insurance company knows they will have to pay less of any possible repairs caused by accidents. This means they will lower your premiums. Make sure you make it as high as possible, but no more than you can afford. If you make it too high and you get into an accident, if you can't afford it, you are in trouble.

A good way to make sure you can afford it is to keep an emergency fund of at least that amount in your bank account at all times. This way, if the worst happens, you're covered, and you can still enjoy low premiums. If you can't afford to do that, set your deductible lower.

Finally, to lower your rate even more, take advantage of as many possible discounts as possible. More of the quality insurance companies that give good coverage will offer discounts on your insurance. If you qualify for the discounts, you can significantly lower your rates.

Some examples include senior discounts, student discounts, taking a defensive driving course, having a safe car, etc. Of course, as a young driver, senior discounts won't be of much good to you, but if you are in school, you could get lower rates for getting good grades.

Driving safely is another great way to get discounts. Some companies offer accident forgiveness meaning you get a break on a certain amount of your deductible for every set amount of time you go without an accident. Also, if you drive a safe car with good safety features, you can get further discounts.

Getting affordable young driver car insurance is all about thinking and shopping carefully. Don't jump into anything. Don't just get insurance with a company because that's what your parents use. Get something that will give you great coverage at an affordable price and try to lower that rate as much as possible.