When you're a young driver, you could find that you're paying more for your auto insurance coverage than older drivers because you haven't proven yourself as safe behind the wheel for an extended period of time. This shouldn't discourage you – provided you stay out of at-fault accidents, you can expect your rate to drop in about three years. In the meantime, there are a variety of other strategies that you can use to have your premium reduced in a shorter amount of time. Here are three ways to achieve this goal.
Improve Your Grades At School
If you're a full-time high school student or a full-time college student, your success in the classroom has the ability to lower your auto insurance premium. Insurance companies will typically drop the premium of a student who can achieve a grade-point average of at least 3.0 in their studies. If your school uses letter grades instead of the GPA rating, you need to achieve a "B" average. If you're already maintaining this average, provide your insurance agent with a copy of your latest transcript; if you have a little work to do before you can reach this average, it's an extra incentive to buckle down on your studies.
Use Your Vehicle Less
Many insurance providers offer their customers a premium reduction if their annual driving doesn't surpass a specific threshold. While this guideline can vary according to the insurance provider, you typically need to keep your annual driving to less than 15,000 miles per year; for some providers, a low-mileage discounts kicks in at just 7,500 miles driven per year. You can often think of simple ways to reduce the amount that you drive – even if you enjoy being behind the wheel of your car. Taking public transportation to school or your part-time job, if even just a few times per week, can greatly limit your mileage over the course of the year.
Improve Your Credit Rating
If you happened to get a credit card when you were a teenager and made purchases that you couldn't pay for, you might have a credit rating that isn't so stellar. The good news is that improving this rating is an effective way to reduce your auto insurance premium. A better credit rating doesn't happen instantly, but you can work toward this goal by buying only what you can afford, paying your credit card off promptly and ensuring that your bills are paid in a timely manner.